Trans-Pacific Partnership Agreement - "The World and Japan" Database

"The World and Japan" Database (Project Leader: TANAKA Akihiko)

Database of Japanese Politics and International Relations

National Graduate Institute for Policy Studies (GRIPS); Institute for Advanced Studies on Asia (IASA), The University of Tokyo

[Title] Trans-Pacific Partnership Agreement

[Place] Auckland

[Date] February 4, 2016

[Source] Cabinet Secretariat of Japan

[Notes]

[Full text]

Text of the Trans-Pacific Partnership Agreement

PREAMBLE

The Parties to this Agreement, resolving to:

ESTABLISH a comprehensive regional agreement that promotes economic integration to liberalise trade and investment, bring economic growth and social benefits, create new opportunities for workers and businesses, contribute to raising living standards, benefit consumers, reduce poverty and promote sustainable growth;

STRENGTHEN the bonds of friendship and cooperation between them and their peoples;

BUILD on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization;

RECOGNISE the differences in their levels of development and diversity of economies;

STRENGTHEN the competitiveness of their businesses in global markets and enhance the competitiveness of their economies by promoting opportunities for businesses, including promoting the development and strengthening of regional supply chains;

SUPPORT the growth and development of micro, small and medium- sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;

ESTABLISH a predictable legal and commercial framework for trade and investment through mutually advantageous rules;

FACILITATE regional trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;

RECOGNISE their inherent right to regulate and resolve to preserve the flexibility of the Parties to set legislative and regulatory priorities, safeguard public welfare, and protect legitimate public welfare objectives, such as public health, safety, the environment, the conservation of living or non-living exhaustible natural resources, the integrity and stability of the financial system and public morals;

RECOGNISE further their inherent right to adopt, maintain or modify health care systems;

AFFIRM that state-owned enterprises can play a legitimate role in the diverse economies of the Parties, while recognising that the provision of unfair advantages to state-owned enterprises undermines fair and open trade and investment, and resolve to establish rules for state-owned enterprises that promote a level playing field with privately owned businesses, transparency and sound business practices;

PROMOTE high levels of environmental protection, including through effective enforcement of environmental laws, and further the aims of sustainable development, including through mutually supportive trade and environmental policies and practices;

PROTECT and enforce labour rights, improve working conditions and living standards, strengthen cooperation and the Parties' capacity on labour issues;

PROMOTE transparency, good governance and the rule of law, and eliminate bribery and corruption in trade and investment;

RECOGNISE the important work that their relevant authorities are doing to strengthen macroeconomic cooperation, including on exchange rate issues, in appropriate fora;

RECOGNISE the importance of cultural identity and diversity among and within the Parties, and that trade and investment can expand opportunities to enrich cultural identity and diversity at home and abroad;

CONTRIBUTE to the harmonious development and expansion of world trade and provide a catalyst to broader regional and international cooperation;

ESTABLISH an Agreement to address future trade and investment challenges and opportunities, and contribute to advancing their respective priorities over time; and

EXPAND their partnership by encouraging the accession of other States or separate customs territories in order to further enhance regional economic integration and create the foundation of a Free Trade Area of the Asia Pacific,

HAVE AGREED as follows:

CHAPTER 1

INITIAL PROVISIONS AND GENERAL DEFINITIONS

Section A: Initial Provisions

Article 1.1: Establishment of a Free Trade Area

The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area in accordance with the provisions of this Agreement.

Article 1.2: Relation to Other Agreements

1. Recognising the Parties' intention for this Agreement to coexist with their existing international agreements, each Party affirms:

(a) in relation to existing international agreements to which all Parties are party, including the WTO Agreement, its existing rights and obligations with respect to the other Parties; and

(b) in relation to existing international agreements to which that Party and at least one other Party are party, its existing rights and obligations with respect to that other Party or Parties, as the case may be.

2. If a Party considers that a provision of this Agreement is inconsistent with a provision of another agreement to which it and at least one other Party are party, on request, the relevant Parties to the other agreement shall consult with a view to reaching a mutually satisfactory solution. This paragraph is without prejudice to a Party's rights and obligations under Chapter 28 (Dispute Settlement).

Section B: General Definitions

Article 1.3: General Definitions

For the purposes of this Agreement, unless otherwise provided in this Agreement:

AD Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;

Agreement means the Trans-Pacific Partnership Agreement;

APEC means Asia-Pacific Economic Cooperation;

central level of government has for each Party the meaning set out in Annex 1-A (Party-Specific Definitions);

Commission means the Trans-Pacific Partnership Commission established under Article 27.1 (Establishment of the Trans-Pacific Partnership Commission);

covered investment means, with respect to a Party, an investment in its territory of an investor of another Party in existence as of the date of entry into force of this Agreement for those Parties or established, acquired, or expanded thereafter;

customs administration means the competent authority that is responsible under the laws of a Party for the administration of customs laws, regulations and, where applicable, policies, and has for each Party the meaning set out in Annex 1-A (Party-Specific Definitions);

customs duty includes any duty or charge of any kind imposed on or in

connection with the importation of a good, and any surtax or surcharge imposed in connection with such importation, but does not include any:

(a) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;

(b) fee or other charge in connection with the importation commensurate with the cost of services rendered; or

Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;

days means calendar days;

enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or governmentally owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, association or similar organisation;

existing means in effect on the date of entry into force of this Agreement;

GATS means the General Agreement on Trade in Services, set out in Annex 1B to the WTO Agreement;

GATT 1994 means the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;

goods means any merchandise, product, article or material;

goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of a Party;

government procurement means the process by which a government obtains the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or use in the production or supply of goods or services for commercial sale or resale;

Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes and Subheading Notes as adopted and implemented by the Parties in their respective laws;

heading means the first four digits in the tariff classification number under the Harmonized System;

measure includes any law, regulation, procedure, requirement or practice;

national means a "natural person who has the nationality of a Party" according to Annex 1-A (Party-Specific Definitions) or a permanent resident of a Party;

originating means qualifying as originating under the rules of origin set out in Chapter 3 (Rules of Origin and Origin Procedures) or Chapter 4 (Textile and Apparel Goods);

Party means any State or separate customs territory for which this Agreement is in force;

person means a natural person or an enterprise;

person of a Party means a national or an enterprise of a Party;

preferential tariff treatment means the customs duty rate applicable to an originating good, pursuant to each Party's Tariff Schedule set out in Annex 2-D (Tariff Commitments);

recovered material means a material in the form of one or more individual parts that results from:

(a) the disassembly of a used good into individual parts; and

(b) the cleaning, inspecting, testing or other processing of those parts as necessary for improvement to sound working condition;

remanufactured good means a good classified in HS Chapters 84 through 90 or under heading 94.02 except goods classified under HS headings 84.18, 85.09, 85.10, and 85.16, 87.03 or subheadings 8414.51, 8450.11, 8450.12, 8508.11, and 8517.11, that is entirely or partially composed of recovered materials and:

(a) has a similar life expectancy and performs the same as or similar to such a good when new; and

(b) has a factory warranty similar to that applicable to such a good when new;

regional level of government has for each Party the meaning set out in Annex 1- A (Party-Specific Definitions);

Safeguards Agreement means the Agreement on Safeguards, set out in Annex 1A to the WTO Agreement;

sanitary or phytosanitary measure means any measure referred to in paragraph 1 of Annex A to the SPS Agreement;

SCM Agreement means the Agreement on Subsidies and Countervailing Measures, set out in Annex 1A to the WTO Agreement;

SME means a small and medium-sized enterprise, including a micro-sized enterprise;

SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, set out in Annex 1A to the WTO Agreement;

state enterprise means an enterprise that is owned, or controlled through ownership interests, by a Party;

subheading means the first six digits in the tariff classification number under the Harmonized System;

territory has for each Party the meaning set out at Annex 1-A (Party-Specific Definitions);

textile or apparel good means a good listed in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin);

TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, set out in Annex 1C to the WTO Agreement;

WTO means the World Trade Organization; and

WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on April 15, 1994.

ANNEX 1-A

PARTY-SPECIFIC DEFINITIONS

Further to Article 1.3 (General Definitions), for the purposes of this Agreement, unless provided elsewhere in this Agreement:

central level of government means:

(a) for Australia, the Commonwealth Government;

(b) for Brunei Darussalam, the national level of government;

(d) for Chile, the national level of government;

(e) for Japan, the Government of Japan;

(f) for Malaysia, the federal level of government;

(g) for Mexico, the federal level of government;

(h) for New Zealand, the national level of government;

(i) for Peru, the national level of government;

(j) for Singapore, the national level of government;

(k) for the United States, the federal level of government; and

(l) for Viet Nam, the national level of government;

customs administration means:

(a) for Australia, the Department of Immigration and Border Protection;

(b) for Brunei Darussalam, the Royal Customs and Excise Department;

(d) for Chile, the National Customs Service of Chile (Servicio Nacional de Aduanas);

(e) for Japan, the Ministry of Finance;

(f) for Malaysia, the Royal Malaysian Customs Department;

(g) for Mexico, the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público);

(h) for New Zealand, the New Zealand Customs Service;

(i) for Peru, the National Superintendence of Customs and Tax Administration (Superintendencia Nacional de Aduanas y de Administración Tributaria);

(j) for Singapore, the Singapore Customs;

(k) for the United States, U.S. Customs and Border Protection; and, with respect to provisions that concern enforcement, information sharing and investigations, this also means U.S. Immigration and Customs Enforcement, as applicable; and

(l) for Viet Nam, the General Department of Viet Nam Customs,

or any successor of such customs administration;

natural person who has the nationality of a Party means:

(a) for Australia, a natural person who is an Australian citizen as defined in the Australian Citizenship Act 2007, as amended from time to time, or any successor legislation;

(b) for Brunei Darussalam, a subject of His Majesty the Sultan and Yang Di-Pertuan in accordance with the laws of Brunei Darussalam;

(d) for Chile, a Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile (Constitución Política de la República de Chile);

(e) for Japan, a natural person who has the nationality of Japan under its laws;

(f) for Malaysia, a natural person who is a citizen of Malaysia in accordance with its laws and regulations;

(g) for Mexico, a person who has the nationality of Mexico in accordance with its applicable laws;

(h) for New Zealand, a natural person who is a citizen as defined in the Citizenship Act 1977, as amended from time to time, or any successor legislation;

(i) for Peru, a natural person who has the nationality of Peru by birth, naturalisation or option in accordance with the Political Constitution of Peru (Constitución Política del Perú) and other relevant domestic legislation;

(j) for Singapore, a person who is a citizen of Singapore within the meaning of its Constitution and its domestic laws;

(k) for the United States, a "national of the United States" as defined in the Immigration and Nationality Act; and

(l) for Viet Nam, a natural person who is a citizen of Viet Nam within the meaning of its Constitution and its domestic laws;

regional level of government means:

(a) for Australia, a state of Australia, the Australian Capital Territory, or the Northern Territory;

(b) for Brunei Darussalam, the term regional level of government is not applicable;

(d) for Chile, as a unitary Republic, the term regional level of government is not applicable;

(e) for Japan, the term regional level of government is not applicable;

(f) for Malaysia, a State of the Federation of Malaysia in accordance with the Federal Constitution of Malaysia;

(g) for Mexico, a state of the United Mexican States;

(h) for New Zealand, the term regional level of government is not applicable;

(i) for Peru, regional government in accordance with the Political Constitution of Peru (Constitución Política del Perú) and other applicable legislation;

(j) for Singapore, the term regional level of government is not applicable;

(k) for the United States, a state of the United States, the District of Columbia, or Puerto Rico; and

(l) for Viet Nam, the term regional level of government is not applicable; and

territory means:

(a) for Australia, the territory of Australia:

(i) excluding all external territories other than the Territory of Norfolk Island, the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, the Territory of Ashmore and Cartier Islands, the Territory of Heard Island and McDonald Islands, and the Coral Sea Islands Territory; and

(ii) including Australia's air space, territorial sea, contiguous zone, exclusive economic zone and continental shelf over which Australia exercises sovereign rights or jurisdiction in accordance with international law;

(b) for Brunei Darussalam, the land territory, internal waters and territorial sea of Brunei Darussalam, extending to the air space above its territorial sea, as well as to its sea-bed and subsoil over which it exercises sovereignty, and the maritime area beyond its territorial sea, which has been or may hereafter be designated under the laws of Brunei Darussalam in accordance with international law as an area over which Brunei Darussalam exercises sovereign rights and jurisdiction with respect to the seabed, the subsoil and superjacent waters to the seabed and subsoil as well as the natural resources;

(i) the land territory, air space, internal waters and territorial seas of Canada;

(ii) the exclusive economic zone of Canada, as determined by its domestic law, consistent with Part V of the United Nations Convention on the Law of the Sea done at Montego Bay on December 10, 1982 (UNCLOS); and

(iii) the continental shelf of Canada, as determined by its

domestic law, consistent with Part VI of UNCLOS;

(d) for Chile, the land, maritime, and air space under its sovereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law;

(e) for Japan, the territory of Japan, and all the area beyond its territorial sea, including the sea-bed and subsoil thereof, over which Japan exercises sovereign rights or jurisdiction in accordance with international law including the UNCLOS and the laws and regulations of Japan;

(f) for Malaysia, its land territory, internal waters and territorial sea, as well as any maritime area situated beyond the territorial sea as designated or that might in the future be designated under its national law, in accordance with international law, as an area within which Malaysia exercises sovereign rights and jurisdiction with regards to the seabed, subsoil and superjacent waters to the seabed and subsoil as well as the natural resources;

(g) for Mexico:

(i) the states of the Federation and the Federal District;

(ii) the islands, including the reefs and keys, in the adjacent seas;

(iii) the islands of Guadalupe and Revillagigedo, situated in the Pacific Ocean;

(iv) the continental shelf and the submarine shelf of such islands, keys and reefs;

(v) the waters of the territorial seas, in accordance with international law, and its interior maritime waters;

(vi) the space located above the national territory, in accordance with international law; and

(vii) any areas beyond the territorial seas of Mexico within which, in accordance with international law, including the United Nations Convention on the Law of the Sea done at Montego Bay on December 10, 1982, and its domestic law, Mexico may exercise sovereign rights or jurisdiction;

(h) for New Zealand, the territory of New Zealand and the exclusive

economic zone, seabed and subsoil over which it exercises sovereign rights with respect to natural resources in accordance with international law, but does not include Tokelau;

(i) for Peru, the mainland territory, the islands, the maritime areas and the air space above them, under sovereignty or sovereign rights and jurisdiction of Peru, in accordance with the provisions of the Political Constitution of Peru (Constitución Política del Perú) and other relevant domestic law and international law;

(j) for Singapore, its land territory, internal waters and territorial sea, as well as any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise sovereign rights or jurisdiction with regards to the sea, the sea-bed, the subsoil and the natural resources;

(k) for the United States:

(i) the customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico;

(ii) the foreign trade zones located in the United States and Puerto Rico; and

(iii) the territorial sea of the United States and any area beyond the territorial sea within which, in accordance with customary international law as reflected in the United Nations Convention on the Law of the Sea, the United States may exercise sovereign rights or jurisdiction; and

(l) for Viet Nam, the land territory, islands, internal waters, territorial sea, and air space above them, the maritime areas beyond territorial sea including seabed, subsoil and natural resources thereof over which Viet Nam exercises its sovereignty, sovereign rights or jurisdiction in accordance with its domestic laws and international law.

CHAPTER 2

NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

Section A: Definitions and Scope

Article 2.1: Definitions

For the purposes of this Chapter:

advertising films and recordings means recorded visual media or audio materials, consisting essentially of images or sound, showing the nature or operation of goods or services offered for sale or lease by a person of a Party, that are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public;

Agreement on Agriculture means the Agreement on Agriculture, set out in Annex 1A to the WTO Agreement;

commercial samples of negligible value means commercial or trade samples: having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar or the equivalent amount in the currency of another Party; or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;

consular transactions means requirements that goods of a Party intended for export to the territory of another Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers' export declarations, or any other customs documentation required on or in connection with importation;

consumed means, with respect to a good:

(m) actually consumed; or

(n) further processed or manufactured:

(i) so as to result in a substantial change in the value, form or use of the good; or

(ii) in the production of another good;

duty-free means free of customs duty;

goods admitted for sports purposes means sports requisites admitted into the territory of the importing Party for use in sports contests, demonstrations or training in the territory of that Party;

goods intended for display or demonstration includes their component parts, ancillary apparatuses and accessories;

import licensing means an administrative procedure requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body of the importing Party as a prior condition for importation into the territory of that Party;

Import Licensing Agreement means the Agreement on Import Licensing Procedures, set out in Annex 1A to the WTO Agreement;

performance requirement means a requirement that:

(o) a given level or percentage of goods or services be exported;

(p) domestic goods or services of the Party granting a waiver of customs duties or an import licence be substituted for imported goods;

(q) a person benefiting from a waiver of customs duties or a requirement for an import licence purchase other goods or services in the territory of the Party that grants the waiver of customs duties or the import licence or accord a preference to domestically produced goods;

(r) a person benefiting from a waiver of customs duties or a requirement for an import licence produce goods or supply services in the territory of the Party that grants the waiver of customs duties or the import licence, with a given level or percentage of domestic content; or

(s) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows,

but does not include a requirement that an imported good be:

(t) subsequently exported;

(u) used as a material in the production of another good that is subsequently exported;

(v) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported; or

(w) substituted by an identical or similar good that is subsequently exported; and

printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicise or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.

Article 2.2: Scope

Unless otherwise provided in this Agreement, this Chapter applies to trade in goods of a Party.

Section B: National Treatment and Market Access for Goods

Article 2.3: National Treatment

3. Each Party shall accord national treatment to the goods of the other Parties in accordance with Article III of GATT 1994, including its interpretative notes, and to this end, Article III of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

4. For greater certainty, the treatment to be accorded by a Party under paragraph 1 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment that the regional level of government accords to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it forms a part.

5. Paragraph 1 shall not apply to the measures set out in Annex 2-A (National Treatment and Import and Export Restrictions).

Article 2.4: Elimination of Customs Duties

1. Unless otherwise provided in this Agreement, no Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good.

2. Unless otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on originating goods in accordance with its Schedule to Annex 2-D (Tariff Commitments).

3. On request of any Party, the requesting Party and one or more other Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules to Annex 2-D (Tariff Commitments).

4. An agreement between two or more of the Parties to accelerate the elimination of a customs duty on an originating good shall supersede any duty rate or staging category determined pursuant to those Parties' Schedules to Annex 2-D (Tariff Commitments) for that good once approved by each Party to that agreement in accordance with its applicable legal procedures. The parties to that agreement shall inform the other Parties as early as practicable before the new rate of customs duty takes effect.

5. A Party may at any time unilaterally accelerate the elimination of customs duties set out in its Schedule to Annex 2-D (Tariff Commitments) on originating goods of one or more of the other Parties. A Party shall inform the other Parties as early as practicable before the new rate of customs duty takes effect.

6. For greater certainty, no Party shall prohibit an importer from claiming for an originating good the rate of customs duty applied under the WTO Agreement.

7. For greater certainty, a Party may raise a customs duty to the level set out in its Schedule to Annex 2-D (Tariff Commitments) following a unilateral reduction for the respective year.

Article 2.5: Waiver of Customs Duties

1. No Party shall adopt any new waiver of a customs duty, or expand with respect to an existing recipient or extend to any new recipient the application of an existing waiver of a customs duty, that is conditioned, explicitly or implicitly, on the fulfilment of a performance requirement.

2. No Party shall, explicitly or implicitly, condition the continuation of any existing waiver of a customs duty on the fulfilment of a performance requirement.

Article 2.6: Goods Re-entered after Repair and Alteration

1. No Party shall apply a customs duty to a good, regardless of its origin, that re-enters the Party's territory after that good has been temporarily exported from the Party's territory to the territory of another Party for repair or alteration, regardless of whether that repair or alteration could have been performed in the territory of the Party from which the good was exported for repair or alteration or increased the value of the good.

2. No Party shall apply a customs duty to a good, regardless of its origin, admitted temporarily from the territory of another Party for repair or alteration.

3. For the purposes of this Article, "repair or alteration" does not include an operation or process that:

(x) destroys a good's essential characteristics or creates a new or commercially different good; or

(y) transforms an unfinished good into a finished good.

Article 2.7: Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Material

Each Party shall grant duty-free entry to commercial samples of negligible value and printed advertising material imported from the territory of another Party, regardless of their origin, but may require that:

(z) commercial samples of negligible value be imported solely for the solicitation of orders for goods, or services provided from the territory, of another Party or a non-Party; or

(aa) printed advertising material be imported in packets that each contain no more than one copy of the material and that neither that material nor those packets form part of a larger consignment.

Article 2.8: Temporary Admission of Goods

1. Each Party shall grant duty-free temporary admission for the following goods, regardless of their origin:

(bb) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, that is necessary for carrying out the business activity, trade or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;

(cc) goods intended for display or demonstration;

(dd) commercial samples and advertising films and recordings; and

(ee) goods admitted for sports purposes.

2. Each Party shall, at the request of the person concerned and for reasons its customs authority considers valid, extend the time limit for duty-free temporary admission beyond the period initially fixed.

3. No Party shall condition the duty-free temporary admission of the goods referred to in paragraph 1, other than to require that those goods:

(ff) be used solely by or under the personal supervision of a national of another Party in the exercise of the business activity, trade, profession or sport of that national of another Party;

(gg) not be sold or leased while in its territory;

(hh) be accompanied by a security in an amount no greater than the charges that would otherwise be owed on entry or final importation, releasable on exportation of the goods;

(ii) be capable of identification when imported and exported;

(jj) be exported on the departure of the national referred to in subparagraph (a), or within any other period reasonably related to the purpose of the temporary admission that the Party may establish, or within one year, unless extended;

(kk) be admitted in no greater quantity than is reasonable for their intended use; and

(ll) be otherwise admissible into the Party's territory under its laws.

4. Each Party shall grant duty-free temporary admission for containers and pallets regardless of their origin, that are in use or to be used in the shipment of goods in international traffic.

(mm) For the purposes of this paragraph, container means an article of transport equipment that is: fully or partially enclosed to constitute a compartment intended for containing goods; substantial and has an internal volume of one cubic metre or more; of a permanent character and accordingly strong enough to be suitable for repeated use; used in significant numbers in international traffic; specially designed to facilitate the carriage of goods by more than one mode of transport without intermediate reloading; and designed both for ready handling, particularly when being transferred from one mode of transport to another, and to be easy to fill and to empty, but does

not include vehicles, accessories or spare parts of vehicles or packaging.

(nn) For the purposes of this paragraph, pallet means a small, portable platform, which consists of two decks separated by bearers or a single deck supported by feet, on which goods can be moved, stacked and stored, and which is designed essentially for handling by means of fork lift trucks, pallet trucks or other jacking devices.

5. If any condition that a Party imposes under paragraph 3 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good in addition to any other charges or penalties provided for under its law.

6. Each Party shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, those procedures shall provide that when a good admitted under this Article accompanies a national of another Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national.

7. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than the port through which it was admitted.

8. Each Party shall, in accordance with its law, provide that the importer or other person responsible for a good admitted under this Article shall not be liable for failure to export the good on presentation of satisfactory proof to the importing Party that the good was destroyed within the period fixed for temporary admission, including any lawful extension.

9. Subject to Chapter 9 (Investment) and Chapter 10 (Cross-Border Trade in Services):

(oo) each Party shall allow a vehicle or container used in international traffic that enters its territory from the territory of another Party to exit its territory on any route that is reasonably related to the economical and prompt departure of that vehicle or container;

(pp) no Party shall require any security or impose any penalty or charge solely by reason of any difference between the customs port of entry and the customs port of departure of a vehicle or container;

(qq) no Party shall condition the release of any obligation, including any security, that it imposes in respect of the entry of a vehicle or container into its territory on the exit of that vehicle or container through any particular customs port of departure; and

(rr) no Party shall require that the vehicle or carrier bringing a container from the territory of another Party into its territory be the same vehicle or carrier that takes that container to the territory of that other Party, or to the territory of any other Party.

10. For the purposes of paragraph 9, vehicle means a truck, a truck tractor, a tractor, a trailer unit or trailer, a locomotive, or a railway car or other railroad equipment.

Article 2.9: Ad hoc Discussions

1. Each Party shall designate and notify a contact point in accordance with Article 27.5 (Contact Points), to facilitate communications between the Parties on any matter covered by this Chapter, including any request or information conveyed under Article 26.5 (Provision of Information) relating to a measure of a Party that may affect the operation of this Chapter.

2. A Party (the requesting Party) may request ad hoc discussions on any matter arising under this Chapter (including a specific non-tariff measure) that the requesting Party believes may adversely affect its interests in trade in goods, except a matter that could be addressed under a Chapter-specific consultation mechanism established under another Chapter, by delivering a written request to another Party (the requested Party) through its contact point for this Chapter. The request shall be in writing and identify the reasons for the request, including a description of the requesting Party's concerns and an indication of the provisions of this Chapter to which the concerns relate. The requesting Party may provide all the other Parties with a copy of the request.

3. If the requested Party considers that the matter that is the subject of the request should be addressed under a Chapter-specific consultation mechanism established under another Chapter, it shall promptly notify the contact point for this Chapter of the requesting Party and include in its notice the reasons it considers that the request should be addressed under the other mechanism. The requested Party shall promptly forward the request and its notice to the overall contact points of the requesting and requested Parties designated under Article 27.5 (Contact Points) for appropriate action.

4. Within 30 days of receipt of a request under paragraph 2, the requested Party shall provide a written reply to the requesting Party. Within 30 days of the requesting Party's receipt of the reply, the requesting and requested Parties (the discussing Parties) shall meet in person or via electronic means to discuss the matter identified in the request. If the discussing Parties choose to meet in person, the meeting shall take place in the territory of the requested Party, unless the discussing Parties decide otherwise.

5. Any Party may submit a written request to the discussing Parties to participate in the ad hoc discussions. If the matter has not been resolved prior to the receipt of a Party's request to participate and the discussing Parties agree, the Party may participate in these ad hoc discussions subject to any conditions that the discussing Parties may decide.

6. If the requesting Party believes that the matter is urgent, it may request that ad hoc discussions take place within a shorter time frame than that provided for under paragraph 4. Any Party may request urgent ad hoc discussions if a measure:

(a) is applied without prior notice or without an opportunity for a Party to avail itself of ad hoc discussions under paragraphs 2, 3 and 4; and

(b) may threaten to impede the importation, sale or distribution of an originating good which is in the process of being transported from the exporting Party to the importing Party, or has not been released from customs control, or is in storage in a warehouse regulated by the customs administration of the importing Party.

7. Ad hoc discussions under this Article shall be confidential and without prejudice to the rights of any Party, including being without prejudice to rights pertaining to dispute settlement proceedings under Chapter 28 (Dispute Settlement).

Article 2.10: Import and Export Restrictions

1. Unless otherwise provided in this Agreement, no Party shall adopt or maintain any prohibition or restriction on the importation of any good of another Party or on the exportation or sale for export of any good destined for the territory of another Party, except in accordance with Article XI of GATT 1994 and its interpretative notes, and to this end Article XI of GATT 1994 and its

interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

2. The Parties understand that GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, a Party from adopting or maintaining:

(a) export and import price requirements, except as permitted in enforcement of countervailing and antidumping duty orders and undertakings;

(b) import licensing conditioned on the fulfilment of a performance requirement; or

(c) voluntary export restraints inconsistent with Article VI of GATT 1994, as implemented under Article 18 of the SCM Agreement and Article 8.1 of the AD Agreement.

3. For greater certainty, paragraph 1 applies to the importation of commercial cryptographic goods.

4. For the purposes of paragraph 3:

commercial cryptographic goods means any good implementing or incorporating cryptography, if the good is not designed or modified specifically for government use and is sold or otherwise made available to the public.

5. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 2-A (National Treatment and Import and Export Restrictions).

6. In the event that a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, no provision of this Agreement shall be construed to prevent that Party from:

(d) limiting or prohibiting the importation of the good of the non-Party from the territory of another Party; or

(e) requiring, as a condition for exporting the good of that Party to the territory of another Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.

7. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on the request of any Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing, or distribution arrangements in another Party.

8. No Party shall, as a condition for engaging in importation or for the importation of a good, require a person of another Party to establish or maintain a contractual or other relationship with a distributor in its territory.

9. For greater certainty, paragraph 8 does not prevent a Party from requiring a person referred to in that paragraph to designate a point of contact for the purpose of facilitating communications between its regulatory authorities and that person.

10. For the purposes of paragraph 8:

distributor means a person of a Party who is responsible for the commercial distribution, agency, concession or representation in the territory of that Party of goods of another Party.

Article 2.11: Remanufactured Goods

1. For greater certainty, Article 2.10.1 (Import and Export Restrictions) shall apply to prohibitions and restrictions on the importation of remanufactured goods.

2. If a Party adopts or maintains measures prohibiting or restricting the importation of used goods, it shall not apply those measures to remanufactured goods.

Article 2.12: Import Licensing

1. No Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement.

2. Promptly after this Agreement enters into force for a Party, that Party shall notify the other Parties of its existing import licensing procedures, if any. The notice shall include the information specified in Article 5.2 of the Import Licensing Agreement and any information required under paragraph 6.

3. A Party shall be deemed to be in compliance with the obligations in paragraph 2 with respect to an existing import licensing procedure if:

(a) it has notified that procedure to the WTO Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement together with the information specified in Article 5.2 of that agreement;

(b) in the most recent annual submission due before the date of entry into force of this Agreement for that Party to the WTO Committee on Import Licensing in response to the annual questionnaire on import licensing procedures described in Article 7.3 of the Import Licensing Agreement, it has provided, with respect to that procedure, the information requested in that questionnaire; and

(c) it has included in either the notice described in subparagraph (a) or the annual submission described in subparagraph (b) any information required to be notified to the other Parties under paragraph 6.

4. Each Party shall comply with Article 1.4(a) of the Import Licensing Agreement with respect to any new or modified import licensing procedure. Each Party shall also publish on an official government website any information that it is required to publish under Article 1.4(a) of the Import Licensing Agreement.

5. Each Party shall notify the other Parties of any new import licensing procedures it adopts and any modifications it makes to its existing import licensing procedures, if possible, no later than 60 days before the new procedure or modification takes effect. In no case shall a Party provide the notification later than 60 days after the date of its publication. The notification shall include any information required under paragraph 6. A Party shall be deemed to be in compliance with this obligation if it notifies a new import licensing procedure or a modification to an existing import licensing procedure to the WTO Committee on Import Licensing in accordance with Article 5.1, 5.2 or 5.3 of the Import Licensing Agreement, and includes in its notification any information required to be notified to the other Parties under paragraph 6.

6. (a) A notice under paragraph 2, 3 or 5 shall state if, under any import licensing procedure that is a subject of the notice:

(i) the terms of an import licence for any product limit the permissible end users of the product; or

(ii) the Party imposes any of the following conditions on eligibility for obtaining a licence to import any product:

(A) membership in an industry association;

(B) approval by an industry association of the request for an import licence;

(D) minimum importer or end user production capacity;

(E) minimum importer or end user registered capital; or

(F) a contractual or other relationship between the importer and a distributor in the Party's territory.

(b) A notice that states, under subparagraph (a), that there is a limitation on permissible end users or a licence-eligibility condition shall:

(i) list all products for which the end-user limitation or licence- eligibility condition applies; and

(ii) describe the end-user limitation or licence-eligibility condition.

7. Each Party shall respond within 60 days to a reasonable enquiry from another Party concerning its licensing rules and its procedures for the submission of an application for an import licence, including the eligibility of persons, firms and institutions to make an application, the administrative body or bodies to be approached and the list of products subject to the licensing requirement.

8. If a Party denies an import licence application with respect to a good of another Party, it shall, on request of the applicant and within a reasonable period after receiving the request, provide the applicant with a written explanation of the reason for the denial.

9. No Party shall apply an import licensing procedure to a good of another Party unless it has, with respect to that procedure, met the requirements of paragraph 2 or 4, as applicable.

Article 2.13: Transparency in Export Licensing Procedures

1. For the purposes of this Article:

export licensing procedure means a requirement that a Party adopts or maintains under which an exporter must, as a condition for exporting a good from the Party's territory, submit an application or other documentation to an administrative body or bodies, but does not include customs documentation required in the normal course of trade or any requirement that must be fulfilled prior to introduction of the good into commerce within the Party's territory.

2. Within 30 days of the date of entry into force of this Agreement for a Party, that Party shall notify the other Parties in writing of the publications in which its export licensing procedures, if any, are set out, including addresses of relevant government websites. Thereafter, each Party shall publish in the notified publications and websites any new export licensing procedure, or any modification of an export licensing procedure, that it adopts as soon as practicable but no later than 30 days after the new procedure or modification takes effect.

3. Each Party shall ensure that it includes in the publications it notifies under paragraph 2:

(a) the texts of its export licensing procedures, including any modifications it makes to those procedures;

(b) the goods subject to each licensing procedure;

(i) the process for applying for a licence; and

(ii) any criteria an applicant must meet to be eligible to apply for a licence, such as possessing an activity licence, establishing or maintaining an investment, or operating through a particular form of establishment in a Party's territory;

(d) a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export licence;

(e) the administrative body or bodies to which an application for a licence or other relevant documentation must be submitted;

(f) a description of or a citation to a publication reproducing in full any measure or measures that the export licensing procedure is designed to implement;

(g) the period during which each export licensing procedure will be in effect, unless the procedure will remain in effect until withdrawn or revised in a new publication;

(h) if the Party intends to use a licensing procedure to administer an export quota, the overall quantity and, if practicable, value of the quota and the opening and closing dates of the quota; and

(i) any exemptions or exceptions available to the public that replace the requirement to obtain an export licence, how to request or use these exemptions or exceptions and the criteria for them.

4. Except where doing so would reveal business proprietary or other confidential information of a particular person, on request of another Party that has a substantial trade interest in the matter, a Party shall provide, to the extent possible, the following information regarding a particular export licensing procedure that it adopts or maintains:

(a) the aggregate number of licences that the Party has granted over a recent period that the requesting Party has specified; and

(b) measures, if any, that the Party has taken in conjunction with the licensing procedure to restrict domestic production or consumption or to stabilise production, supply or prices for the relevant good.

5. Nothing in this Article shall be construed in a manner that would require a Party to grant an export licence, or that would prevent a Party from implementing its obligations or commitments under United Nations Security Council Resolutions, as well as multilateral non-proliferation regimes, including: the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual- Use Goods and Technologies; the Nuclear Suppliers Group; the Australia Group; the Convention on the Prohibition of the Development, Production, Stockpiling

and Use of Chemical Weapons and on Their Destruction, done at Paris, January 13, 1993; the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on Their Destruction, done at Washington, London, and Moscow, April 10, 1972; the

Treaty on the Non-Proliferation of Nuclear Weapons, done at London, Moscow and Washington, July 1, 1968; and the Missile Technology Control Regime.

Article 2.14: Administrative Fees and Formalities

1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than export taxes, customs duties, charges equivalent to an internal tax or other internal charge applied consistently with Article III:2 of GATT 1994, and antidumping and countervailing duties) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.

2. No Party shall require consular transactions, including related fees and charges, in connection with the importation of a good of another Party.

3. Each Party shall make publicly available online a current list of the fees and charges it imposes in connection with importation or exportation.

4. No Party shall levy fees and charges on or in connection with importation or exportation on an ad valorem basis.

5. Each Party shall periodically review its fees and charges, with a view to reducing their number and diversity if practicable.

Article 2.15: Export Duties, Taxes or Other Charges

Except as provided for in Annex 2-C (Export Duties, Taxes or Other Charges), no Party shall adopt or maintain any duty, tax or other charge on the export of any good to the territory of another Party, unless such duty, tax or charge is adopted or maintained on that good when destined for domestic consumption.

Article 2.16: Publication

Each Party shall promptly publish the following information in a non- discriminatory and easily accessible manner, in order to enable interested parties to become acquainted with it:

(a) importation, exportation and transit procedures, including port, airport and other entry-point procedures, and required forms and documents;

(b) applied rates of duties, and taxes of any kind imposed on or in connection with importation or exportation;

(d) laws, regulations and administrative rulings of general application relating to rules of origin;

(e) import, export or transit restrictions or prohibitions;

(f) fees and charges imposed on or in connection with importation, exportation or transit;

(g) penalty provisions against breaches of import, export or transit formalities;

(h) appeal procedures;

(i) agreements or parts of agreements with any country relating to importation, exportation or transit;

(j) administrative procedures relating to the imposition of tariff quotas; and

(k) correlation tables showing correspondence between any new national nomenclature and the previous national nomenclature.

Article 2.17: Trade in Information Technology Products

Each Party shall be a participant in the WTO Ministerial Declaration on Trade in Information Technology Products (Information Technology Agreement), 13 December 1996, and have completed the procedures for modification and rectification of its Schedule of Tariff Concessions set out in the Decision of 26 March 1980, L/4962, in accordance with paragraph 2 of the Information Technology Agreement.

Article 2.18: Committee on Trade in Goods

1. The Parties hereby establish a Committee on Trade in Goods (Committee), composed of government representatives of each Party.

2. The Committee shall meet as necessary to consider any matters arising under this Chapter. During the first five years after entry into force of this Agreement, the Committee shall meet no less than once a year.

3. The Committee's functions shall include:

(a) promoting trade in goods between the Parties, including through consultations on accelerating tariff elimination under this Agreement and other issues as appropriate;

(b) addressing barriers to trade in goods between the Parties, other than those within the competence of other committees, working groups or any other subsidiary bodies established under this Agreement, especially those related to the application of non-tariff measures and, if appropriate, refer these matters to the Commission for its consideration;

(c) reviewing the future amendments to the Harmonized System to ensure that each Party's obligations under this Agreement are not altered, including by establishing, as needed, guidelines for the transposition of Parties' Schedules to Annex 2-D (Tariff Commitments) and consulting to resolve any conflicts between:

(i) amendments to the Harmonized System and Annex 2-D (Tariff Commitments); or

(ii) Annex 2-D (Tariff Commitments) and national nomenclatures;

(d) consulting on and endeavouring to resolve any differences that may arise between the Parties on matters related to the classification of goods under the Harmonized System and Annex 2-D (Tariff Commitments); and

(e) undertaking any additional work that the Commission may assign to it.

4. The Committee shall consult, as appropriate, with other committees established under this Agreement when addressing issues of relevance to those committees.

5. The Committee shall, within two years of the date of entry into force of this Agreement, submit to the Commission an initial report on its work under paragraphs 3(a) and 3(b). In producing this report, the Committee shall consult, as appropriate, with the Committee on Agricultural Trade established under Article 2.25 (Committee on Agricultural Trade) and the Committee on Textile and Apparel Trade Matters established under Chapter 4 (Textile and Apparel Goods) of this Agreement on portions of the report of relevance to those committees.

Section C: Agriculture

Article 2.19: Definitions

For the purposes of this Section:

agricultural goods means those goods referred to in Article 2 of the Agreement on Agriculture;

export subsidies shall have the meaning assigned to that term in Article 1(e) of the Agreement on Agriculture, including any amendment of that Article;

modern biotechnology means the application of:

(a) in vitro nucleic acid techniques, including recombinant deoxyribonucleic acid (rDNA) and direct injection of nucleic acid into cells or organelles; or

(b) fusion of cells beyond the taxonomic family,

that overcome natural physiological reproductive or recombinant barriers and that are not techniques used in traditional breeding and selection; and

products of modern biotechnology means agricultural goods, as well as fish and fish products , developed using modern biotechnology, but does not include medicines and medical products.

Article 2.20: Scope

This Section shall apply to measures adopted or maintained by a Party relating to trade in agricultural goods.

Article 2.21: Agricultural Export Subsidies

1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall work together to achieve an agreement in the WTO to eliminate those subsidies and prevent their reintroduction in any form.

2. No Party shall adopt or maintain any export subsidy on any agricultural good destined for the territory of another Party.

Article 2.22: Export Credits, Export Credit Guarantees or Insurance Programmes

Recognising the ongoing work in the WTO in the area of export competition and that export competition remains a key priority in multilateral negotiations, Parties shall work together in the WTO to develop multilateral disciplines to govern the provision of export credits, export credit guarantees and insurance programmes, including disciplines on matters such as transparency, self-financing and repayment terms.

Article 2.23: Agricultural Export State Trading Enterprises

The Parties shall work together toward an agreement in the WTO on export state trading enterprises that requires:

(a) the elimination of trade distorting restrictions on the authorisation to export agricultural goods;

(b) the elimination of any special financing that a WTO Member grants directly or indirectly to state trading enterprises that export for sale a significant share of the Member's total exports of an agricultural good; and

Article 2.24: Export Restrictions – Food Security

1. Parties recognise that under Article XI:2(a) of GATT 1994, a Party may temporarily apply an export prohibition or restriction that is otherwise prohibited under Article XI:1 of GATT 1994 on foodstuffs to prevent or relieve a critical shortage of foodstuffs, subject to meeting the conditions set out in Article 12.1 of the Agreement on Agriculture.

2. In addition to the conditions set out in Article 12.1 of the Agreement on Agriculture under which a Party may apply an export prohibition or restriction, other than a duty, tax or other charge, on foodstuffs:

(a) a Party that:

(i) imposes such a prohibition or restriction on the exportation or sale for export of foodstuffs to another Party to preventor relieve a critical shortage of foodstuffs, shall in all cases notify the measure to the other Parties prior to the date it takes effect and, except when the critical shortage is caused by an event constituting force majeure, shall notify the measure to the other Parties at least 30 days prior to the date it takes effect; or

(ii) as of the date of entry into force of this Agreement for that Party, maintains such a prohibition or restriction, shall, within 30 days of that date, notify the measure to the other Parties.

(b) A notification under this paragraph shall include the reasons for imposing or maintaining the prohibition or restriction, as well as an explanation of how the measure is consistent with Article XI:2(a) of GATT 1994, and shall note alternative measures, if any, that the Party considered before imposing the prohibition or restriction.

(c) A measure shall not be subject to notification under this paragraph or paragraph 4 if it prohibits or restricts the exportation or sale for export only of a foodstuff or foodstuffs of which the Party imposing the measure has been a net importer during each of the three calendar years preceding the imposition of the measure, excluding the year in which the Party imposes the measure.

(d) If a Party that adopts or maintains a measure referred to in subparagraph (a) has been a net importer of each foodstuff subject to that measure during each of the three calendar years preceding imposition of the measure, excluding the year in which the Party imposes the measure, and that Party does not provide the other Parties with a notification under subparagraph (a), the Party shall, within a reasonable period of time, provide to the other Parties trade data demonstrating that it was a net importer of the foodstuff or foodstuffs during these three calendar years.

3. A Party that is required to notify a measure under paragraph 2(a) shall:

(a) consult, on request, with any other Party having a substantial interest as an importer of the foodstuffs subject to the measure, with respect to any matter relating to the measure;

(b) on the request of any Party having a substantial interest as an importer of the foodstuffs subject to the measure, provide that Party with relevant economic indicators bearing on whether a critical shortage within the meaning of Article XI:2(a) of GATT 1994 exists or is likely to occur in the absence of the measure, and on how the measure will prevent or relieve the critical shortage; and

(c) respond in writing to any question posed by any other Party regarding the measure within 14 days of receipt of the question.

4. A Party which considers that another Party should have notified a measure under paragraph 2(a) may bring the matter to the attention of that other Party. If the matter is not satisfactorily resolved promptly thereafter, the Party which considers that the measure should have been notified may itself bring the measure to the attention of the other Parties.

5. A Party should ordinarily terminate a measure subject to notification under paragraph 2(a) or 4 within six months of the date it is imposed. A Party contemplating continuation of a measure beyond six months from the date it is imposed shall notify the other Parties no later than five months after the date the measure is imposed and provide the information specified in paragraph 2(b). Unless the Party has consulted with the other Parties that are net importers of any foodstuff the exportation of which is prohibited or restricted under the measure, the Party shall not continue the measure beyond 12 months from the date it is imposed. The Party shall immediately discontinue the measure when the critical shortage, or threat thereof, ceases to exist.

6. No Party shall apply any measure that is subject to notification under paragraph 2(a) or 4 to food purchased for non-commercial humanitarian purposes.

Article 2.25: Committee on Agricultural Trade

1. The Parties hereby establish a Committee on Agricultural Trade, composed of government representatives of each Party.

2. The Committee on Agricultural Trade shall provide a forum for:

(a) promoting trade in agricultural goods between the Parties under this Agreement and other issues as appropriate;

(b) monitoring and promoting cooperation on the implementation and administration of this Section, including notification of export restrictions on foodstuffs as stipulated in Article 2.24 (Export Restrictions – Food Security), and discussing the cooperative work identified in Article 2.21 (Agricultural Export Subsidies), Article 2.22 (Export Credits, Export Credit Guarantees or Insurance Programmes) and Article 2.23 (Agricultural Export State Trading Enterprises);

(c) consultation among the Parties on matters related to this Section in coordination with other committees, working groups or any other subsidiary bodies established under this Agreement; and

(d) undertaking any additional work that the Committee on Trade in Goods and the Commission may assign.

3. The Committee on Agricultural Trade shall meet as necessary. During the first five years after entry into force of this Agreement, the Committee on Agricultural Trade shall meet no less than once a year.

Article 2.26: Agricultural Safeguards

Originating agricultural goods from any Party shall not be subject to any duties applied by a Party pursuant to a special safeguard taken under the Agreement on Agriculture.

Article 2.27: Trade of Products of Modern Biotechnology

1. The Parties confirm the importance of transparency, cooperation and exchanging information related to the trade of products of modern biotechnology.

2. Nothing in this Article shall prevent a Party from adopting measures in accordance with its rights and obligations under the WTO Agreement or other provisions of this Agreement.

3. Nothing in this Article shall require a Party to adopt or modify its laws, regulations and policies for the control of products of modern biotechnology within its territory.

4. Each Party shall, when available and subject to its laws, regulations and policies, make available publicly:

(a) any documentation requirements for completing an application for the authorisation of a product of modern biotechnology;

(b) a summary of any risk or safety assessment that has led to the authorisation of a product of modern biotechnology; and

5. Each Party shall designate and notify a contact point or contact points for the sharing of information on issues related to low level presence (LLP) occurrences, in accordance with Article 27.5 (Contact Points).

6. In order to address an LLP occurrence, and with a view to preventing a future LLP occurrence, on request of an importing Party, an exporting Party shall, when available and subject to its laws, regulations and policies:

(a) provide a summary of the risk or safety assessment or assessments, if any, that the exporting Party conducted in connection with an authorisation of a specific plant product of modern biotechnology;

(b) provide, if known to the exporting Party, contact information for any entity within its territory that received authorisation for the plant product of modern biotechnology and which the Party believes is likely to possess:

(i) any validated methods that exist for the detection of the plant product of modern biotechnology found at a low level in a shipment;

(ii) any reference samples necessary for the detection of the LLP occurrence; and

(iii) relevant information that can be used by the importing Party to conduct a risk or safety assessment or, if a food safety assessment is appropriate, relevant information for a food safety assessment in accordance with Annex 3 of the Codex Guideline for the Conduct of Food Safety Assessment of Foods Derived from Recombinant-DNA Plants (CAC/GL 45-2003); and

(c) encourage an entity referred to in subparagraph (b) to share the information referred to in subparagraphs (b)(i), (b)(ii) and (b)(iii) with the importing Party.

7. In the event of an LLP occurrence, the importing Party shall, subject to its laws, regulations and policies:

(a) inform the importer or the importer's agent of the LLP occurrence and of any additional information that the importer will be required to submit to allow the importing Party to make a decision on the disposition of the shipment in which the LLP occurrence has been found;

(b) if available, provide to the exporting Party a summary of any risk or safety assessment that the importing Party has conducted in connection with the LLP occurrence; and

based on the Codex Guideline for the Conduct of a Food Safety Assessment of Foods Derived from Recombinant-DNA Plants (CAC/GL 45-2003).

(c) ensure that the measures applied to address the LLP occurrence are appropriate to achieve compliance with its laws, regulations and policies.

8. To reduce the likelihood of trade disruptions from LLP occurrences:

(a) each exporting Party shall, consistent with its laws, regulations and policies, endeavour to encourage technology developers to submit applications to Parties for authorisation of plants and plant products of modern biotechnology; and

(b) a Party authorising plant and plant products derived from modern biotechnology shall endeavour to:

(i) allow year-round submission and review of applications for authorisation of plants and plant products of modern biotechnology; and

(ii) increase communications between the Parties regarding new authorisations of plants and plant products of modern biotechnology so as to improve global information exchange.

9. The Parties hereby establish a working group on products of modern biotechnology (Working Group) under the Committee on Agricultural Trade for information exchange and cooperation on trade-related matters associated with products of modern biotechnology. The Working Group shall be comprised of government representatives of Parties that inform, in writing, the Committee on Agricultural Trade that they will participate in the Working Group and name one or more government representatives to the Working Group.

10. The Working Group shall provide a forum to:

(a) exchange, subject to a Party's laws, regulations and policies, information on issues, including on actual and proposed laws, regulations and policies, related to the trade of products of modern biotechnology; and

(b) further enhance cooperation between two or more Parties, when there is mutual interest, related to the trade of products of modern biotechnology.

Section D: Tariff-Rate Quota Administration

Article 2.28: Scope and General Provisions

1. Each Party shall implement and administer tariff-rate quotas (TRQs) in accordance with Article XIII of GATT 1994, including its interpretative notes, the Import Licensing Agreement and Article 2.12 (Import Licensing). All TRQs established by a Party under this Agreement shall be incorporated into that Party's Schedule to Annex 2-D (Tariff Commitments).

2. Each Party shall ensure that its procedures for administering its TRQs are made available to the public, are fair and equitable, are no more administratively burdensome than absolutely necessary, are responsive to market conditions and are administered in a timely manner.

3. The Party administering a TRQ shall publish all information concerning its TRQ administration, including the size of quotas and eligibility requirements; and, if the TRQ will be allocated, application procedures, the application deadline, and the methodology or procedures that will be used for the allocation or reallocation, on its designated publicly available website at least 90 days prior to the opening date of the TRQ concerned.

Article 2.29: Administration and Eligibility

1. Each Party shall administer its TRQs in a manner that allows importers the opportunity to utilise TRQ quantities fully.

2. (a) Except as provided in subparagraphs (b) and (c), no Party shall

introduce a new or additional condition, limit or eligibility requirement on the utilisation of a TRQ for importation of a good, including in relation to specification or grade, permissible end-use of the imported product or package size, beyond those set out in its Schedule to Annex 2-D (Tariff Commitments).

(b) A Party seeking to introduce a new or additional condition, limit or eligibility requirement on the utilisation of a TRQ for importation of a good shall notify the other Parties at least 45 days prior to the proposed effective date of the new or additional condition, limit or

eligibility requirement. Any Party with a demonstrable commercial interest in supplying the good may submit a written request for consultations to the Party seeking to introduce the new or additional condition, limit or eligibility requirement. On receipt of such a request for consultations, the Party seeking to introduce the new or additional condition, limit or eligibility requirement shall promptly undertake consultations with the Party that submitted the request, in accordance with Article 2.32.6 (Transparency).

(i) it has consulted with any Party with a demonstrable commercial interest in supplying the good that has submitted a written request for consultations pursuant to subparagraph (b); and

(ii) no Party with a demonstrable commercial interest in supplying the good that submitted a written request for consultations pursuant to subparagraph (b) objected, after the consultation, to the introduction of the new or additional condition, limit or eligibility requirement.

(d) A new or additional condition, limit or eligibility requirement that is the outcome of any consultation held pursuant to subparagraph (c), shall be circulated to the Parties prior to its implementation.

Article 2.30: Allocation

1. In the event that access under a TRQ is subject to an allocation mechanism, each importing Party shall ensure that:

(a) any person of a Party that fulfils the importing Party's eligibility requirements is able to apply and to be considered for a quota allocation under the TRQ;

(b) unless otherwise agreed, it does not allocate any portion of the quota to a producer group, condition access to an allocation on the purchase of domestic production or limit access to an allocation to processors;

(c) each allocation is made in commercially viable shipping quantities and, to the maximum extent possible, in the amounts that importers request;

(d) an allocation for in-quota imports is applicable to any tariff lines subject to the TRQ and is valid throughout the TRQ year;

(e) if the aggregate TRQ quantity requested by applicants exceeds the quota size, allocation to eligible applicants shall be conducted by equitable and transparent methods;

(f) applicants have at least four weeks after the opening of the application period to submit their applications; and

(g) quota allocation takes place no later than four weeks before the opening of the quota period, unless the allocation is based in whole or in part on import performance during the 12-month period immediately preceding the quota period. If the Party bases the allocation in whole or in part on import performance during the 12- month period immediately preceding the quota period, the Party shall make a provisional allocation of the full quota amount no later than four weeks before the opening of the quota period. All final allocation decisions, including any revisions, shall be made and communicated to applicants by the beginning of the quota period.

2. During the first TRQ year that this Agreement is in force for a Party, if less than 12 months remain in the TRQ year on the date of entry into force of this Agreement for that Party, the Party shall make available to quota applicants, beginning on the date of entry into force of this Agreement for that Party, the

quota quantity established in its Schedule to Annex 2-D (Tariff Commitments), multiplied by a fraction the numerator of which shall be a whole number consisting of the number of months remaining in the TRQ year on the date of entry into force of this Agreement for that Party, including the entirety of the month in which this Agreement enters into force for that Party, and the denominator of which shall be 12. The Party shall make the entire quota quantity established in its Schedule to Annex 2-D (Tariff Commitments) available to quota applicants beginning on the first day of each TRQ year thereafter that the quota is in operation.

3. The Party administering a TRQ shall not require the re-export of a good as a condition for application for, or utilisation of, a quota allocation.

4. Any quantity of goods imported under a TRQ under this Agreement shall not be counted towards, or reduce the quantity of, any other TRQ provided for such goods in a Party's Schedule to the WTO Agreement or under any other trade agreements.

Article 2.31: Return and Reallocation of TRQs

1. When a TRQ is administered by an allocation mechanism, a Party shall ensure that there is a mechanism for the return and reallocation of unused allocations in a timely and transparent manner that provides the greatest possible opportunity for the TRQ to be filled.

2. Each Party shall publish on a regular basis on its designated publicly available website all information concerning amounts allocated, amounts returned and, if available, quota utilisation rates. In addition, each Party shall publish on the same website amounts available for reallocation and the application deadline, at least two weeks prior to the date on which the Party will begin accepting applications for reallocations.

Article 2.32: Transparency

1. Each Party shall identify the entity or entities responsible for administering its TRQs and designate and notify at least one contact point, in accordance with Article 27.5 (Contact Points), to facilitate communications between the Parties on matters relating to the administration of its TRQs. Each Party shall promptly notify the other Parties of any amendments to the details of its contact point.

2. When a TRQ is administered by an allocation mechanism, the name and address of allocation holders shall be published on the designated publicly available website.

3. When a TRQ is administered on a first-come, first-served basis, over the course of each year, the importing Party's administering authority shall publish, in a timely and continually on-going manner on its designated publicly available website, utilisation rates and remaining available quantities for each TRQ.

4. When a TRQ of an importing Party that is administered on a first-come, first-served basis fills, that Party shall publish a notice to this effect on its designated publicly available website within 10 days.

5. When a TRQ of an importing Party that is administered by an allocation mechanism fills, that Party shall publish a notice to this effect on its designated publicly available website as early as practicable.

6. On written request of an exporting Party or Parties, the Party administrating a TRQ shall consult with the requesting Party or Parties regarding the administration of its TRQ.

ANNEX 2-A

NATIONAL TREATMENT AND IMPORT AND EXPORT RESTRICTIONS

1. For greater certainty, nothing in this Annex shall affect the rights or obligations of any Party under the WTO Agreement with respect to any measure listed in this Annex.

2. Article 2.3.1 (National Treatment), Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to the continuation, renewal, or amendment made to any law, statute, decree or administrative regulations giving rise to a measure set out in this Annex to the extent that the continuation, renewal, or amendment does not decrease the conformity of the measure listed with Article 2.3 (National Treatment) and Article 2.10 (Import and Export Restrictions).

Measures of Brunei Darussalam

Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to the goods specified in section 31 of Customs Order 2006.

Measures of Canada

1. Article 2.3.1 (National Treatment), Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to:

(a) the export of logs of all species;

(b) the export of unprocessed fish pursuant to applicable provincial legislation;

(c) the importation of goods of the prohibited provisions of tariff items 9897.00.00, 9898.00.00 and 9899.00.00 referred to in the Schedule of the Customs Tariff;

(d) Canadian excise duties on absolute alcohol, as listed under tariff item 2207.10.90 in Canada's Schedule of Concessions annexed to GATT 1994 (Schedule V), used in manufacturing under the provisions of the Excise Act, 2001, Statutes of Canada 2002, c.22, as amended;

(e) the use of ships in the coasting trade of Canada; and

(f) the internal sale and distribution of wine and distilled spirits.

2. Article 2.3.1 (National Treatment) shall not apply, as specified in Article 2.3.3, to a measure affecting the production, publication, exhibition or sale of goods that supports the creation, development or accessibility of Canadian artistic expression or content.

Measures of Chile

Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to measures of Chile relating to imports of used vehicles.

Measures of Mexico

1. Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply:

(a) to restrictions pursuant to Article 48 of the Hydrocarbons Law (Ley de Hidrocarburos) published in Mexico's Official Gazette (Diario Oficial de la Federación) on August 11, 2014, on the exportation from Mexico of the goods provided for in the following items of Mexico's tariff schedule of the General Import and Export Duties Law (Tarifa de la Ley de los Impuestos Generales de Importación y de Exportación) published in Mexico's Official Gazette (Diario Oficial de la Federación) on June 18, 2007 and June 29, 2012:

(b) during the period prior to January 1, 2019, to prohibitions or restrictions on the importation into Mexico of gasoline and diesel fuel set forth in Article 123 of the Hydrocarbons Law (Ley de Hidrocarburos), published in Mexico's Official Gazette (Diario Oficial de la Federación) on August 11, 2014; and

(c) to prohibitions or restrictions on the importation into Mexico of used tyres, used apparel, used vehicles and used chassis equipped with vehicle motors set forth in paragraphs 1(I) and 5 of Annex 2.2.1 of the Resolution through which the Ministry of Economy establishes Rules and General Criteria on International Trade (Acuerdo por el que la Secretaría de Economía emite reglas y criterios de carácter general en materia de Comercio Exterior), published in Mexico's Official Gazette (Diario Oficial de la Federación) on December 31, 2012.

2. The Commission shall review paragraph 1(a) pursuant to any review conducted under Article 27.2.1(b) (Functions of the Commission).

Measures of Peru

Article 2.3.1 (National Treatment), Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to:

(a) used clothing and footwear pursuant to Law No. 28514 of May 23, 2005;

(b) used vehicles and used automotive engines, parts and replacements pursuant to Legislative Decree No. 843 of August 30, 1996, Urgent Decree No. 079-2000 of September 20, 2000, Urgent Decree No. 050-2008 of December 18, 2008;

(d) used goods, machinery and equipment which utilise radioactive energy sources pursuant to Law No. 27757 of June 19, 2002.

Measures of the United States

Article 2.3.1 (National Treatment), Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to:

(a) controls on the export of logs of all species; and

(b) measures under existing provisions of the Merchant Marine Act of 1920, the Passenger Vessel Act, and 46 U.S.C. § 12102, § 12113, and § 12116, to the extent that such measures were mandatory legislation at the time of the accession of the United States to the General Agreement on Tariffs and Trade 1947 (GATT 1947) and have not been amended so as to decrease their conformity with Part II of GATT 1947.

Measures of Viet Nam

Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to:

(a) a prohibition on importation, set out in Decree No. 187/2013/ND- CP dated 20 November 2013 of the Government of Viet Nam or Circular No. 04/2014/TT-BCT dated 27 January 2014 of the Ministry of Industry and Trade guiding the implementation of the Decree No. 187/2013/ND-CP, with respect to a good listed in (i) through (iv) of this subparagraph. The goods listed in (i) through (iv) of this subparagraph are:

(i) right-hand drive motor vehicles (including right-hand drive motor vehicles modified after manufacture to be left-hand drive vehicles), except specialised right-hand drive vehicles that generally operate in small areas such as cranes, trench and canal digging machines, garbage trucks, road sweepers, road construction trucks, airport passenger transportation buses, fork-lifts used at warehouses and ports;

(ii) vehicle components usable exclusively in right-hand drive motor vehicles that are not specialised right-hand drive vehicles;

(iii) motor vehicles more than five years old;

(iv) used:

(A) textiles, clothing and footwear;

(B) computer printers, fax machines, and computer disk drives;

(D) refrigeration equipment;

(E) household electrical appliances;

(F) medical equipment;

(G) furniture;

(H) household goods made from porcelain, clay, glass, metal, resin, rubber, and plastic;

(I) frames, tyres (outer and inner), tubes, accessories, and engines, of automobiles, tractors, and other motor vehicles;

(J) internal combustion engines with a capacity below 30 CV and machines with an internal combustion engine with a capacity below 30 CV; and

(K) bicycles and tricycles; and

(b) a prohibition on exportation, set out in Decree No. 187/2013/ND- CP dated 20 November 2013 of the Government of Viet Nam or Circular No. 04/2014/TT-BCT dated 27 January 2014 of the Ministry of Industry and Trade guiding the implementation of the Decree No. 187/2013/ND-CP, with respect to a good listed in (i) and (ii) of this subparagraph. The goods listed in (i) and (ii) of this subparagraph are:

(i) round and sawn timber produced from domestic natural forests; and

(ii) wooden products (except handicrafts and products produced from wood of cultivated forests, imported wood or artificial pallet).

Kimberley Process Certification Scheme

Article 2.10.1 (Import and Export Restrictions) and Article 2.10.2 shall not apply to the import and export of rough diamonds (HS codes 7102.10, 7102.21 and 7102.31), pursuant to the Kimberley Process Certification Scheme and any subsequent amendments to that scheme.

ANNEX 2-B

REMANUFACTURED GOODS

1. Article 2.11.2 (Remanufactured Goods) shall not apply to measures of Viet Nam prohibiting or restricting the importation of remanufactured goods for three years after the date of entry into force of this Agreement for Viet Nam. Thereafter, Article 2.11.2 (Remanufactured Goods) shall apply to all measures of Viet Nam, except as provided in paragraph 2 of this Annex.

2. Article 2.11.2 (Remanufactured Goods) shall not apply to a prohibition or restriction set out in Decree No. 187/2013/ND-CP dated 20 November 2013 of the Government of Viet Nam or Circular No. 04/2014/TT-BCT dated 27 January 2014 of the Ministry of Industry and Trade on the importation of a good listed in Table 2-B-1.

3. For greater certainty, Viet Nam shall not:

(a) apply any prohibition or restriction on the importation of a remanufactured good that is more stringent than the prohibition or restriction it applies to the importation of the same good when used; or

(b) re-impose any prohibition or restriction on the importation of a remanufactured good following the removal of the prohibition or restriction.

Table 2-B-1

ANNEX 2-C

EXPORT DUTIES, TAXES OR OTHER CHARGES

1. Article 2.15 (Export Duties, Taxes or Other Charges) shall apply to goods provided for in the items listed in a Party's Section to this Annex only as specified below.

2. With respect to a good provided for in an item listed in Section 1 to this Annex, Malaysia shall not apply any export duties, taxes or other charges in an amount greater than that specified for that item in Section 1 to this Annex.

3. With respect to a good provided for in an item listed in Section 2 to this Annex, Viet Nam shall eliminate any export duties, taxes or other charges in accordance with the following categories, as indicated for each item listed in Section 2 to this Annex:

(a) export duties, taxes or other charges on goods provided for in the items in category A may remain in place for five years but shall not exceed the base rate. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 6;

(b) export duties, taxes or other charges on goods provided for in the items in category B may remain in place for seven years but shall not exceed the base rate. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 8;

(c) export duties, taxes or other charges on goods provided for in the items in category C shall be eliminated in 11 equal annual stages. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 11;

(d) export duties, taxes or other charges on goods provided for in the items in category D may remain in place for 10 years but shall not exceed the base rate. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 11;

(e) export duties, taxes or other charges on goods provided for in the items in category E shall be eliminated in 13 equal annual stages. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 13;

(f) export duties, taxes or other charges on goods provided for in the items in category F may remain in place for 12 years but shall not exceed the base rate. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 13;

(g) export duties, taxes or other charges on goods provided for in the items in category G shall be eliminated in 16 equal annual stages. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 16;

(h) export duties, taxes or other charges on goods provided for in the items in category H may remain in place for 15 years but shall not exceed the base rate. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 16;

(i) export duties, taxes or other charges on goods provided for in the items in category I shall be reduced to 20 per cent in six equal, annual stages from year 1 to year 6. From January 1 of year 6 until December 31 of year 15, export duties, taxes or other charges on such goods shall not exceed 20 per cent. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 16;

(j) export duties, taxes or other charges on goods provided for in the items in category J shall be reduced to 10 per cent in 11 equal, annual stages from year 1 to year 11. From January 1 of year 11 until December 31 of year 15, export duties, taxes or other charges on such goods shall not exceed 10 per cent. Viet Nam shall not apply any export duty, tax or other charge on such goods from January 1 of year 16; and

(k) export duties, taxes or other charges on goods provided for in the items in category K may remain in place but shall not exceed the base rate.

4. For the purposes of paragraph 3 and Section 2 to this Annex, year 1 means the year of entry into force of this Agreement for Viet Nam. Export duties, taxes or other charges on goods provided for in the items in categories C, E, G, I and J shall be initially reduced on the date of entry into force of this Agreement for Viet Nam. From year 2, each annual stage of reduction of export duties, taxes and other charges shall take effect on January 1 of the relevant year.

5. The base rate of export duties, taxes and other charges is indicated for each item in this Annex.

6. Parties that have listed goods in this Annex shall autonomously endeavour to minimise the application and level of their export duties, taxes and other charges.

Section 1: Malaysia

ANNEX 2-D

TARIFF COMMITMENTS

Section A: Tariff Elimination and Reduction

1. The base rate of customs duty and staging category for determining the interim rate of customs duty at each stage of reduction for an item are indicated for that item in each Party's Schedule.

2. Interim staged rates shall be rounded down at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, as specified in each Party's Schedule.

3. (a) Except as otherwise provided for in paragraph 4(a), when this Agreement enters into force for a Party in accordance with Article 30.5.1 (Entry into Force), Article 30.5.2 or Article 30.5.3:

(i) the rates of customs duties provided for in any tariff line in that Party's Schedule in any staging category other than "EIF" shall be initially reduced on the date of entry into force of this Agreement for that Party; and

(ii) except as otherwise provided in that Party's Schedule, the second stage of tariff reduction shall take effect on January 1 of the following year, and each subsequent annual stage of tariff reduction for that Party shall take effect on January 1 of each subsequent year.

(b) Except as provided for in paragraph 4(b)(i), when this Agreement enters into force for a Party in accordance with Article 30.5.4 (Entry into Force) and Article 30.5.5:

(i) on the date of entry into force of this Agreement for that Party, that Party shall implement all stages of tariff reduction that it would have implemented up to that date as if this Agreement had entered into force for that Party in accordance with Article 30.5.1 (Entry into Force) Article 30.5.2 or Article 30.5.3; and

(iii) except as otherwise provided in that Party's Schedule, the next annual stage of tariff reduction following those stages implemented in accordance with subparagraph (b)(i) shall take effect on January 1 of the year after the date of entry into force of this Agreement for that Party, and each subsequent annual stage of tariff reduction for that Party shall take effect on January 1 of each subsequent year.

4. (a) A Party for which this Agreement has entered into force in accordance with Article 30.5.1 (Entry into Force), Article 30.5.2 or Article 30.5.3 (original Party) may elect, with respect to a Party for which the Agreement has entered into force in accordance with Article 30.5.4 or Article 30.5.5 (new Party), either to:

(i) apply its Schedule to this Annex as if this Agreement had entered into force for both Parties on the date of entry into force of this Agreement for that new Party; or

(ii) apply its Schedule to this Annex as if this Agreement had entered into force for both Parties on the date of entry into force of this Agreement for that original Party.

(b) If the original Party applies its Schedule as if this Agreement had entered into force for both Parties on the date of entry into force of this Agreement for the new Party pursuant to subparagraph (a)(i), that new Party may elect to apply its Schedule with respect to that original Party, either:

(i) as if this Agreement had entered into force for both Parties on the date of entry into force of this Agreement for that new Party; or

(ii) as if this Agreement had entered into force for both Parties on the date of entry into force of this Agreement for that original Party.

(c) An original Party shall, no later than 12 days after the date of the affirmative determination by the Commission referred to in Article 30.5.5 (Entry into Force) for a signatory, notify that signatory and the other Parties of its election under subparagraph (a) with respect to that signatory. That signatory shall, no later than 24 days after the date of the affirmative determination by the Commission referred to in Article 30.5.5 (Entry into Force) for that signatory, notify the Parties of its election under subparagraph (b) with respect to each original Party that notified its election to apply its Schedule pursuant to subparagraph (a)(i) for that signatory.

(d) If an original Party does not notify an election under subparagraph (a) as provided for in subparagraph (c), that original Party shall, on the date of entry into force of this Agreement for the new Party, apply its Schedule to the new Party as provided for in subparagraph (a)(ii). If a new Party does not notify an election under subparagraph (b) as provided for in subparagraph (c), the new Party shall, on the date of entry into force of this Agreement for that new Party, apply its Schedule to that original Party as provided for in subparagraph (b)(ii).

(e) For greater certainty:

(i) an original Party that applies its Schedule to a new Party as provided for in subparagraph (a)(i) may unilaterally accelerate the elimination of customs duties on an originating good set out in its Schedule to this Annex with respect to the new Party in accordance with Article 2.4.5 (Elimination of Customs Duties); and

(ii) a new Party that applies its Schedule to an original Party as provided for in subparagraph (b)(i) may unilaterally accelerate the elimination of customs duties on an originating good set out in its Schedule to this Annex with respect to the original Party in accordance with Article 2.4.5 (Elimination of Customs Duties).

(f) Notwithstanding any other provision of this Agreement, if, on the date of entry into force of this Agreement for a new Party for which an original Party has elected to apply its Schedule as provided for in subparagraph (a)(i):

(i) that original Party unilaterally accelerates the elimination of customs duties on an originating good of the new Party, that original Party shall not subsequently reverse that acceleration; and

(ii) the new Party unilaterally accelerates the elimination of customs duties on an originating good of that original Party, the new Party shall not subsequently reverse that acceleration.

5. In the event of a discrepancy in a Party's Schedule to this Annex between the staging category specified for an item and any tariff rate specified for that item for a particular year, that Party shall apply the rate required in accordance with the staging category specified for the item.

6. For the purposes of this Annex and a Party's Schedule:

(a) year 1 means:

(i) except as provided for in subparagraphs (a)(ii) and (a)(iii), the year of entry into force of this Agreement for any Party in accordance with Article 30.5.1, Article 30.5.2 and Article 30.5.3 (Entry into Force);

(ii) in the Schedule of an original Party, with respect to goods of a new Party for which that original Party has elected to apply its Schedule as provided for in paragraph 4(a)(i), the year of entry into force of this Agreement for that new Party; and

(iii) in the Schedule of a new Party, with respect to goods of an original Party for which that new Party has elected to apply its Schedule as provided for in paragraph 4(b)(i), the year of entry into force of this Agreement for the new Party; but

(iv) notwithstanding subparagraphs (a)(ii) and (a)(iii):

A) for the purposes of any tariff-rate quota or safeguard measure set out in the Schedule of a Party and applicable to originating goods of all Parties, year 1 means the year this Agreement enters into force for any Party in accordance with Article 30.5.1 (Entry into Force); and

B) for the purposes of any tariff-rate quota or safeguard measure set out in the Schedule of a Party and applicable to originating goods of more than one Party, but not all Parties, year 1 shall have the meaning set out in the Schedule of that Party;

(b) year 2 means the year after year 1; year 3 means the year after year 2, year 4 means the year after year 3, and so on; and

(c) year means a calendar year beginning on January 1 and ending on December 31, except as otherwise provided in a Party's Schedule.

7. For tariff lines where a safeguard is applicable as identified in a Party's Schedule to this Annex, the modalities of that safeguard as it applies to originating goods are specified in Appendix B to that Party's Schedule.

Section B: Tariff Differentials

8. Except as otherwise provided in a Party's Schedule to this Annex, if an importing Party applies different preferential tariff treatment to other Parties for the same originating good at the time a claim for preferential tariff treatment is made in accordance with the importing Party's Schedule to this Annex, that importing Party shall apply the rate of customs duty for the originating good of the Party where the last production process, other than a minimal operation, occurred.

9. For the purposes of paragraph 8, a minimal operation is:

(a) an operation to ensure the preservation of a good in good condition for the purposes of transport and storage;

(b) packaging, re-packaging, breaking up of consignments or putting up a good for retail sale, including placing a good in bottles, cans, flasks, bags, cases or boxes;

(d) collection of goods intended to form sets, assortments, kits or composite goods; and

(e) any combination of operations referred to in subparagraphs (a) through (d).

10. Notwithstanding paragraph 8 and any applicable rules and conditions set out in a Party's Schedule to this Annex, the importing Party shall allow an importer to make a claim for preferential tariff treatment at either:

(a) the highest rate of customs duty applicable to an originating good from any of the Parties; or

(b) the highest rate of customs duty applicable to an originating good from any Party where a production process occurred.

Party-specific Annexes to the Chapter

ANNEX 2-D

TARIFF SCHEDULE OF AUSTRALIA GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the corresponding items in Schedule 3 to the Customs Tariff Act 1995 (Cth) (Tariff Act), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the Tariff Act. To the extent that provisions of this Schedule are identical to the corresponding provisions of the Tariff Act, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the Tariff Act.

2. The base rates of duty set out in this Schedule reflect Australia's Most- Favoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. The following staging categories shall apply to the elimination or reduction of customs duties by Australia pursuant to Article 2.4.2 (Elimination of Customs Duties):

(a) customs duties on originating goods provided for in the items in staging category EIF shall be eliminated entirely, and these goods shall be duty-free on the date of entry into force of this Agreement for Australia;

(b) customs duties on originating goods provided for in the items in staging category AU3-A shall be immediately reduced to two per cent and shall then be reduced to one per cent on January 1 of year 2, and shall be eliminated and these goods shall be duty-free from January 1 of Year 3;

(c) customs duties on originating goods provided for in the items in staging category AU3-B shall be immediately reduced to five per cent and shall remain at that level for year 1 through December 31 of year 2, and shall be eliminated and these goods shall be duty- free from January 1 of year 3;

(d) customs duties on originating goods provided for in the items in staging category AU3-C shall remain at the base rate and at that level for year 1 through December 31 of year 2. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 3;

(e) customs duties on originating goods provided for in the items in staging category B4 shall be eliminated in four annual stages and these goods shall be duty-free from January 1 of year 4;

(f) customs duties on originating goods provided for in the items in staging category AU4-A shall be reduced to five per cent and shall remain at that level for year 1 through December 31 of year 3. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 4;

(g) customs duties on originating goods provided for in the items in staging category AU4-B shall remain at the base rate until December 31 of year 3. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 4; and

(h) the ad valorem component of the customs duties on originating goods provided for in the items in staging category AU-R1 shall be eliminated on the date of entry into force of this Agreement for Australia. The non-ad valorem component of the customs duty on these goods shall be maintained.

4. The annual stages referred to in paragraph 3 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 3.

(a) Upon request from Japan, Australia and Japan shall consult to consider Australia's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule no sooner than seven years after the date of entry into force of this Agreement for Australia and Japan, with a view to increasing market access.

(b) Following completion of applicable legal procedures by Australia and another State or customs territory necessary for entry into force of an international agreement, or an amendment thereto, granting preferential market access by Australia to that other State or customs territory, and on request of Japan, Australia and Japan shall consult to consider Australia's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule, with a view to providing to the originating goods treatment equivalent to that provided to goods classified in the same tariff lines under the international agreement. Australia and Japan shall consult no later than one month after the date of the request, unless Australia and Japan agree otherwise.

(c) For greater certainty, nothing in this paragraph shall be construed to affect the rights or obligations of Australia under any other provision of this Agreement.

TARIFF SCHEDULE OF AUSTRALIA (HS2012)

ANNEX 2-D

TARIFF SCHEDULE OF BRUNEI DARUSSALAM GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the corresponding items in Customs Import Duties Order 2007, and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of Brunei Darussalam's Customs Import Duties Order 2007. To the extent that provisions of this Schedule are identical to the corresponding provisions of the the Customs Import Duties Order 2007, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the the Customs Import Duties Order 2007.

2. The base rates of duty set out in this Schedule reflect Brunei Darussalam's Most-Favoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest hundredth of a Brunei dollar.

4. The following staging categories shall apply to the elimination or reduction of customs duties by Brunei Darussalam pursuant to Article 2.4.2 (Elimination of Customs Duties):

(a) customs duties on originating goods provided for in the items in staging category EIF shall be eliminated entirely, and these goods shall be duty-free from the date of entry into force of this Agreement for Brunei Darussalam;

(b) customs duties on originating goods provided for in the items in staging category BD3 shall remain at the base rate until December 31 of year 2. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 3;

(c) customs duties on originating goods provided for in the items in staging category BD6 shall remain at the base rate until December 31 of year 3. The customs duties shall be reduced to 15 per cent ad valorem on January 1 of year 4 and the customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 6;

(d) customs duties on originating goods provided for in the items in staging category BD7-A shall remain at the base rate until December 31 of year 6. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(e) customs duties on originating goods provided for in the items in staging category BD7-B shall remain at the base rate until December 31 of year 3 and be reduced to 10 per cent ad valorem on January 1 of year 4. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(f) customs duties on originating goods provided for in the items in staging category BD7-C shall remain at the base rate until December 31 of year 3. The customs duties on these goods shall be 15 per cent ad valorem from January 1 of year 4; 10 per cent ad valorem from January 1 of year 6; and the customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(g) customs duties on originating goods provided for in the items in staging category BD7-D shall remain at the base rate until December 31 of year 5 and be reduced to five cents per kilogramme on January 1 of year 6. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(h) customs duties on originating goods provided for in the items in staging category BD7-E shall remain at the base rate until December 31 of year 5 and be reduced to ten cents per kilogramme from January 1 of year 6. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(i) customs duties on originating goods provided for in the items in staging category BD7-F shall remain at the base rate until December 31 of year 5 and be reduced to ten cents per decalitre on January 1 of year 6. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(j) customs duties on originating goods provided for in the items in staging category BD7-G shall remain at the base rate until December 31 of year 5 and be reduced to twenty cents per decalitre on January 1 of year 6. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 7;

(k) customs duties on originating goods provided for in the items in staging category BD11 shall remain at the base rate until December 31 of year 10. The customs duties on these goods shall be eliminated and these goods shall be duty-free from January 1 of year 11; and

(l) customs duties on originating goods provided for in the items in staging category BD-A shall remain duty free on the date of entry into force of this Agreement for Brunei Darussalam. The import licensing and import restrictions on these goods shall remain.

5. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

TARIFF SCHEDULE OF BRUNEI DARUSSALAM (HS2012)

ANNEX 2-D

TARIFF SCHEDULE OF CANADA GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of Canada's Customs Tariff, and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of Canada's Customs Tariff. To the extent that provisions of this Schedule are identical to the corresponding provisions of Canada's Customs Tariff, the provisions of this Schedule shall have the same meaning as the corresponding provisions of Canada's Customs Tariff.

2. The base rates of duty set out in this Schedule reflect Canada's MostFavoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest 0.0001 of a Canadian dollar.

4. The following staging categories shall apply to the elimination or reduction of customs duties by Canada pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B4 shall be eliminated in four annual stages, and these goods shall be duty-free effective January 1 of year 4;

(c) customs duties on originating goods provided for in the items in staging category B6 shall be eliminated in six annual stages, and these goods shall be duty-free effective January 1 of year 6;

(d) customs duties on originating goods provided for in the items in staging category B7 shall be eliminated in seven annual stages, and these goods shall be duty-free effective January 1 of year 7;

(e) customs duties on originating goods provided for in the items in staging category B11 shall be eliminated in 11 annual stages, and these goods shall be duty-free effective January 1 of year 11;

(f) customs duties on originating goods provided for in the items in staging category CA1 shall be maintained at the base rate during year 1 through year 8, and shall be eliminated in four annual stages beginning in year 9, and these goods shall be duty-free effective January 1 of year 12;

(g) customs duties on originating goods provided for in the items in staging category CA2 shall be reduced to one-quarter of the base rate on the date of entry into force in year 1, shall be maintained at that rate through year 11, and shall be eliminated and these goods shall be duty-free effective January 1 of year 12;

(h) customs duties on originating goods provided for in the items in staging category CA3 shall be reduced to a rate of duty of 5.5 per cent on the date of entry into force in year 1, shall be reduced to a rate of duty of 5.0 per cent on January 1 of year 2, shall be reduced to a rate of duty of 2.5 per cent on January 1 of year 3, shall be reduced to a rate of duty of 2.0 per cent on January 1 of year 4, and shall be eliminated and these goods shall be duty-free effective January 1 of year 5; and

(i) customs duties on originating goods provided for in the items in staging category TRQ shall be governed by the terms of the TRQ applicable to that tariff item, as outlined in Appendix A (Tariff Rate Quotas of Canada) to Canada's Schedule to Annex 2-D.

5. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

6. (a) Upon request from Japan, Canada and Japan shall consult to consider Canada's commitments to Japan regarding the treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule no sooner than seven years after the date of entry into force of this Agreement for Canada and Japan, with a view to increasing market access.

(b) Following completion of applicable legal procedures by Canada and another State or customs territory necessary for entry into force of an international agreement, or an amendment thereto, granting preferential market access by Canada to that other State or customs territory, and on request of Japan, Canada and Japan shall consult to consider Canada's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule, with a view to providing to the originating goods treatment equivalent to that provided to goods classified in the same tariff lines under the international agreement. Canada and Japan shall consult no later than one month after the date of the request, unless Canada and Japan agree otherwise.

(c) For greater certainty, nothing in this paragraph shall be construed to affect the rights or obligations of Canada under any other provision of this Agreement.

TARIFF SCHEDULE OF CANADA (HS2012)

APPENDIX D

BETWEEN JAPAN AND CANADA ON MOTOR VEHICLE TRADE

Article 1

1. For the purposes of this Appendix:

Appendix Party means either Japan or Canada, as the case may be; motor vehicle means any good classified under heading 87.03; and

originating motor vehicle means any motor vehicle qualifying as originating under Chapter 3 (Rules of Origin and Origin Procedures).

2. No Party other than an Appendix Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Appendix or to dispute settlement under Article 4 for any matter arising under this Agreement. No Appendix Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for nullification or impairment within the meaning of Article 28.3.1(c) (Scope) for any matter arising under Article 3 or Article 4 of this Appendix.

Article 2

An Appendix Party shall accord to the other Appendix Party treatment no less favourable than that accorded to a Party other than the other Appendix Party with respect to technical regulations, standards or conformity assessment procedures on motor vehicles that are adopted or applied in accordance with a bilateral agreement provided for in this Agreement.

Article 3

An Appendix Party may apply a transitional safeguard measure on originating motor vehicles from the other Appendix Party classified under heading 87.03, during the transition period only, in accordance with the provisions set out in Chapter 6 (Trade Remedies), with the following procedural modifications:

(a) In lieu of the definition of transition period provided for in Article 6.1 (Definitions), the following definition shall apply:

transition period means the period beginning on the date of entry into force of this Agreement with respect to Japan and Canada and ending on the date that is 12 years after the end of the period of the staged tariff elimination for a particular good.

(b) In lieu of Article 6.4.2 (Standards for a Transitional Safeguard Measure), the following shall apply:

Neither Appendix Party shall apply a transitional safeguard measure for a period exceeding three years, except that the period may be extended by up to two years if the competent authority of the Appendix Party that applies the measure determines, in conformity with the procedures set out in Article 6.5 (Investigation Procedures and Transparency Requirements), that the transitional safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment.

(d) In lieu of paragraphs 1 and 2 of Article 6.7 (Compensation), the following shall apply:

(i) An Appendix Party applying a transitional safeguard measure shall consult with the other Appendix Party in order to mutually agree on appropriate trade liberalising compensation in the form of concessions that have substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the transitional safeguard measure. The Appendix Party shall provide an opportunity for those consultations no later than 30 days after the application of the transitional safeguard measure;

(ii) If the consultations under subparagraph (d)(i) do not result in an agreement on trade liberalising compensation within 30 days after the consultations begin, the Appendix Party against whose good the transitional safeguard measure is applied may suspend the application of substantially equivalent concessions to the trade of the Appendix Party applying the transitional safeguard measure; and

(iii) The right of suspension referred to in subparagraph (d)(ii) shall not be exercised for the first 24 months during which a transitional safeguard measure is in effect, provided that the transitional safeguard measure conforms to the provisions of this Agreement.

Article 4

1. For the purposes of this Article, the definitions set out in Article 28.1 (Definitions) shall apply, mutatis mutandis.1

2. With respect to any matter described in Article 28.3 (Scope) that relates to motor vehicles, an Appendix Party may initiate the dispute settlement procedures set out in this Article in lieu of the procedures provided for in Article 28.4 (Choice of Forum), Article 28.5 (Consultations), Article 28.6 (Good Offices, Conciliation and Mediation), Article 28.7 (Establishment of a Panel), Article 28.8 (Terms of Reference), Article 28.9 (Composition of Panels), Article 28.10 (Qualifications of Panellists), Article 28.11 (Roster of Panel Chairs and Party Specific Lists), Article 28.12 (Function of Panels), Article 28.13 (Rules of Procedure for Panels), Article 28.14 (Third Party Participation), Article 28.15 (Role of Experts), Article 28.16 (Suspension or Termination of Proceedings), Article 28.17 (Initial Report), Article 28.18 (Final Report), Article 28.19 (Implementation of Final Report), Article 28.20 (Non-Implementation – Compensation and Suspension of Benefits) and Article 28.21 (Compliance Review).

(a) An Appendix Party may request consultations with the other Appendix Party with respect to any matter described in paragraph 2. The Appendix Party making the request for consultations shall do so in writing, and shall set out the reasons for the request, including identification of the actual or proposed measure or other matter at issue and an indication of the legal basis for the complaint. The requesting Appendix Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

(b) The Appendix Party to which a request for consultations is made shall, unless the Appendix Parties agree otherwise, reply in writing to the request no later than seven days after the date of its receipt of the request.3 That Appendix Party shall circulate its reply concurrently to the other Parties through the overall contact points and enter into consultations in good faith.

(c) Unless the Appendix Parties agree otherwise, they shall enter into consultations no later than 15 days after the date of receipt of the request.

(d) Unless the Appendix Parties agree otherwise, paragraphs 5 through 8 of Article 28.5 (Consultations) shall apply, mutatis mutandis,4to the consultations under this paragraph.

(a) An Appendix Party that requested consultations under paragraph 3(a) may request, by means of a written notice addressed to the other Appendix Party, the establishment of a panel if the Appendix Parties fail to resolve the matter within a period of 30 days after the date of receipt of the request for consultations under paragraph 3(a).

(b) The complaining Appendix Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

(c) Paragraphs 3, 4 and 7 of Article 28.7 (Establishment of a Panel) shall apply, mutatis mutandis, to the establishment of a panel. Unless the Appendix Parties agree otherwise, the panel shall be composed in a manner consistent with this Article and, subject to the time frames set out in paragraph 6, the Rules of Procedure.

(a) Unless the Appendix Parties agree otherwise no later than 15 days after the date of delivery of the request for the establishment of a panel, the terms of reference shall be to:

(i) examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of a panel under paragraph 4(a); and

(ii) make findings and determinations, and any jointly requested recommendations, together with its reasons therefor, as provided for in Article 28.17.4 (Initial Report) as applied pursuant to paragraph 8.

(b) If, in its request for the establishment of a panel, the complaining Appendix Party claims that a measure nullifies or impairs benefits within the meaning of Article 28.3.1(c) (Scope), the terms of reference shall so indicate.

(a) A panel shall be composed of three members.

(b) Unless the Appendix Parties agree otherwise, they shall apply the following procedures to compose a panel:

(i) Within a period of 15 days after the date of delivery of the request for the establishment of a panel under paragraph 4(a), the complaining Appendix Party, on the one hand, and the responding Appendix Party, on the other, shall each appoint a panellist and notify each other of those appointments.

(ii) If the complaining Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the dispute settlement proceedings shall lapse at the end of that period.

(iii) If the responding Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the complaining Appendix Party shall select the panellist not yet appointed:

(A) from the responding Appendix Party's list established under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists);

(B) if the responding Appendix Party has not established a list under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists), from the roster of panel chairs established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists); or

(C) if the responding Appendix Party has not established a list under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists) and no roster of panel chairs has been established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists), by random selection from a list of three candidates, who are not nationals of the complaining Appendix Party, nominated by the complaining Appendix Party,

no later than 20 days after the date of delivery of the request for the establishment of a panel under paragraph 4(a).

(iv) For appointment of the third panellist, who shall serve as chair:

(A) the Appendix Parties shall endeavour to agree on the appointment of a chair;

(B) if the Appendix Parties fail to appoint a chair under subparagraph (b)(iv)(A) within a period of 15 days after the date of delivery of the request for the establishment of the panel under paragraph 4(a), the Appendix Parties shall select the chair by random selection from the roster established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) within a period of 20 days after the date of delivery of the request for the establishment of the panel; or

(C) if a roster has not been established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists), and subparagraphs (b)(iv)(A) and (B) cannot apply, each Appendix Party may nominate up to three candidates. The chair shall be randomly selected from those candidates that are nominated within a period of 20 days after the date of delivery of the request for the establishment of a panel under paragraph 4(a).

(D) The chair shall not be a national of either Appendix Party and any nationals of the Appendix Parties appointed to the roster established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) shall be excluded from a selection process under subparagraph (b)(iv).

(v) If a panellist selected under subparagraph (b)(iii) or (iv)(B) is unable to serve on the panel, the Appendix Parties shall meet no later than five days after the date of learning that the panellist is unavailable to select another panellist from among the remaining members of the list (in the case of subparagraph (b)(iii)) or the roster (in the case of subparagraph (b)(iv)(B)).

(vi) If a panellist appointed under this paragraph resigns or becomes unable to serve on the panel, either during the course of proceeding or when the panel is reconvened under paragraph 13 or Article 28.21 (Compliance Review) as applied under paragraph 12, 17 or 18, a replacement panellist shall be appointed within 12 days in accordance with the selection procedures prescribed in this subparagraph for the appointment of the original panellist. The replacement shall have all the powers and duties of the original panellist. The work of the panel shall be suspended pending the appointment of the replacement panellist, and all time frames set out in this Article and in the Rules of Procedure shall be extended by the amount of time that the work was suspended.

(vii) Paragraphs 4, 5 and 10 of Article 28.9 (Composition of Panels) shall apply, mutatis mutandis,to the selection procedures.

7. All panellists shall meet the requirements set out in Article 28.10.1 (Qualifications of Panellists). An individual shall not serve as a panellist for a dispute in which that person has participated under Article 28.6 (Good Offices, Conciliation, and Mediation) as applied pursuant to paragraph 8.

8. Unless the Appendix Parties agree otherwise, Article 28.4 (Choice of Forum), Article 28.6 (Good Offices, Conciliation and Mediation), Article 28.12 (Function of Panels), Article 28.15 (Role of Experts), Article 28.16 (Suspension or Termination of Proceedings), Article 28.17 (Initial Report) and Article 28.18 (Final Report) shall apply, mutatis mutandis,6to panel proceedings under this Article, except that:

(a) with respect to Article 28.17.3 (Initial Report), the panel shall present an initial report to the Appendix Parties no later than 100 days after the date of the appointment of the last panellist;

(b) with respect to Article 28.17.4 (Initial Report), the panel shall also make a determination as to whether the non-conformity or the nullification or impairment, if any, has materially affected the sale, offering for sale, purchase, transportation, distribution or use of originating motor vehicles from the complaining Appendix Party;

(c) with respect to Article 28.17.7 (Initial Report), an Appendix Party may submit written comments to the panel on its initial report no later than 10 days after the presentation of the initial report or within another period as the Appendix Parties may agree; and

(d) with respect to Article 28.18.1 (Final Report), the panel shall present a final report to the Appendix Parties, including any separate opinions on matters not unanimously agreed, no later than 20 days after presentation of the initial report. After taking any steps to protect confidential information, and no later than 15 days after the presentation of the final report, the Appendix Parties shall release the final report to the public.

9. Unless the Appendix Parties agree otherwise, paragraphs 1 and 2 of Article 28.19 (Implementation of Final Report) shall apply, mutatis mutandis, to the implementation of the final report.

10.

(a) Unless the Appendix Parties agree otherwise, if in its final report the panel determines that:

(i) (A) the measure at issue is inconsistent with an Appendix Party's obligations in this Agreement;

(B) an Appendix Party has otherwise failed to carry out its obligations in this Agreement; or

and

the complaining Appendix Party may suspend the application to the responding Appendix Party of benefits in accordance with this paragraph, paragraph 11 and paragraphs 13 through 16.

(b) Unless the Appendix Parties agree otherwise, the responding Appendix Party shall have a reasonable period of time in which to eliminate the non-conformity or nullification or impairment if it is not practicable to do so immediately.

(i) six months from the presentation of the final report under Article 28.18.1 (Final Report) as applied pursuant to paragraph 8; or

(ii) if elimination of the non-conformity or nullification or impairment requires amendment of laws or regulations adopted by the Diet of Japan or the Parliament of Canada, or the legislative body of local subdivision, 12 months from the presentation of the final report.

11.

(a) The responding Appendix Party shall, if requested by the complaining Appendix Party, enter into negotiations with the complaining Appendix Party no later than 15 days after receipt of that request, with a view to developing mutually acceptable compensation, if:

(i) the responding Appendix Party has notified the complaining Appendix Party that it does not intend to eliminate the non conformity or the nullification or impairment; or

(ii) following the expiry of the reasonable period of time set out in paragraph 10(c), there is disagreement between the Appendix Parties as to whether the responding Appendix Party has eliminated the non-conformity or the nullification or impairment.

(b) A complaining Appendix Party may suspend benefits in accordance with subparagraph (c) if the Appendix Parties have:

(i) been unable to agree on compensation within a period of 30 days after the period for developing compensation has begun in accordance with subparagraph (a); or

(ii) agreed on compensation but the complaining Appendix Party considers that the responding Appendix Party has failed to observe the terms of the agreement.

(c) A complaining Appendix Party may, at any time after the conditions set out in subparagraph (b) are met in relation to the complaining Appendix Party, provide a written notice to the responding Appendix Party that it intends to suspend benefits under paragraph 14 or 15. The notice shall specify the level of benefits that the complaining Appendix Party proposes to suspend. The complaining Appendix Party may begin suspending benefits in accordance with paragraph 14 or 15 after the date on which it provides the notice.

(d) Compensation and suspension of benefits shall be temporary measures. None of these measures is preferred to full implementation through elimination of the non-conformity or the nullification or impairment. Compensation and suspension of benefits shall only be applied until the responding Appendix Party has eliminated the non-conformity or the nullification or impairment, or until a mutually satisfactory solution is reached.

12. Unless the Appendix Parties agree otherwise, if in its final report the panel determines that the non-conformity or the nullification or impairment that the panel has determined to exist under paragraph 10(a)(i) has not materially affected the sale, offering for sale, purchase, transportation, distribution or use of originating motor vehicles from the complaining Appendix Party, the procedures provided for in paragraphs 3 through 7 of Article 28.19 (Implementation of Final Report), Article 28.20 (Non-Implementation – Compensation and Suspension of Benefits) and Article 28.21 (Compliance Review) shall apply, mutatis mutandis.

13. (a) If the responding Appendix Party considers that:

(i) the level of benefits proposed to be suspended under paragraph 15 is manifestly excessive; or

(ii) it has eliminated the non-conformity or the nullification or impairment that the panel has determined to exist,

it may, no later than 30 days after the date of delivery of the written notice provided by the complaining Appendix Party under paragraph 11(c), request that the panel be reconvened to consider the matter. The responding Appendix Party shall deliver its request in writing to the complaining Appendix Party. The panel shall reconvene as soon as possible after the date of delivery of the request and shall present its determination to the Appendix Parties no later than 90 days after delivery of the request.

(b) If the panel determines that the level of benefits the complaining Appendix Party proposes to suspend under paragraph 15 is manifestly excessive, it shall determine the level of benefits that the complaining Appendix Party may suspend. The panel shall determine:

(i) the level of benefits of equivalent effect, as set out in Article 28.20.5 (Non-Implementation – Compensation and Suspension of Benefits); and

(ii) if the prevailing most-favoured-nation applied rate of customs duty imposed by the complaining Appendix Party on motor vehicles classified under heading 87.03 is zero per cent, the level of benefits equivalent to the effect of application by the responding Appendix Party of its prevailing most-favoured-nation applied rate of customs duty on motor vehicles classified under heading 87.03.

14. Unless the panel has determined that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment, 30 days after the later of:

(a) the date on which the complaining Appendix Party provides the notice under paragraph 11(c); or

(b) if the responding Appendix Party requests that the panel be reconvened to consider the matter under paragraph 13(a)(ii), the date that the panel issues its determination under paragraph 13,

the complaining Appendix Party may increase the rate of customs duty on originating motor vehicles from the responding Appendix Party classified under heading 87.03 to a level not to exceed the prevailing most-favoured nation applied rate of customs duty on those motor vehicles, for a period of up to 100 days following the 30-day period.

15. Unless the panel has determined that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment:

(a) if the panel determines the level of benefits under paragraph 13(b), 30 days after the later of the date on which the complaining Appendix Party provides the notice under paragraph 11(c) or the date that the panel issues its determination under paragraph 13, the complaining Appendix Party may:

(i) increase the rate of customs duty on originating motor vehicles from the responding Appendix Party classified under heading 87.03 up to the level the panel has determined under paragraph 13(b)(i); or

(ii) if the prevailing most-favoured-nation applied rate of customs duty imposed by the complaining Appendix Party on motor vehicles under heading 87.03 is zero per cent, suspend the application to the responding Appendix Party of benefits with respect to originating goods from the responding Appendix Party:

(A) up to the level the panel has determined under paragraph 13(b)(i); and

(B) up to the level the panel has determined under paragraph 13(b)(ii) for a period of up to 100 days following the 30-day period,

and

provided that the increased rate of customs duty applied to any goods under this paragraph shall not exceed the prevailing most-favoured-nation applied rate of customs duty on such goods.

16. As long as the complaining Appendix Party is applying the increased rate of customs duty under paragraph 14, it shall not suspend the application to the responding Appendix Party of benefits under paragraph 15.

17. Unless the Appendix Parties agree otherwise, Article 28.21 (Compliance Review) shall apply, mutatis mutandis,8to compliance review.

18. If a final report is presented after the 10-year period beginning on the date of entry into force of this Agreement, the procedures provided for in paragraphs 3 through 7 of Article 28.19 (Implementation of Final Report), Article 28.20 (Non Implementation – Compensation and Suspension of Benefits) and Article 28.21 (Compliance Review) shall apply, mutatis mutandis, in lieu of the procedures provided for in paragraphs 10 through 17.

Article 5

1. The Appendix Parties hereby establish a special bilateral Committee on Motor Vehicles (Committee), composed of representatives of the relevant authorities of each Appendix Party. The Committee shall:

(a) monitor implementation of the obligations in this Agreement with respect to motor vehicles;

(b) consult to resolve issues affecting trade and investment between the Appendix Parties that an Appendix Party raises with respect to the development and implementation of measures relating to motor vehicles and motor vehicle parts;

(c) facilitate increased cooperation with respect to emerging issues, including the manufacture, importation, sale and operation of motor vehicles using alternative fuels, and cooperation between the Appendix Parties with respect to issues concerning other markets;

(d) monitor bilateral, regional and global market developments and trends in trade, investment, production, sales and distribution with respect to motor vehicles and motor vehicle parts;

(e) provide opportunities for input from interested persons of the Appendix Parties on matters relevant to the Committee's work, as the Appendix Parties may agree; and

(f) address other issues, if the Appendix Parties agree.

2. The Committee shall meet at mutually agreed times. Meetings shall take place in such locations and through such means as the Appendix Parties decide.

ANNEX 2-D

TARIFF SCHEDULE OF CHILE GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the Customs Tariff Schedule of Chile (Arancel Aduanero Chileno), HS 2012 (SA 2012), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the Customs Tariff Schedule of Chile (Arancel Aduanero Chileno). To the extent that provisions of this Schedule are identical to the corresponding provisions of the Customs Tariff Schedule of Chile (Arancel Aduanero Chileno), the provisions of this Schedule shall have the same meaning as the corresponding provisions of the Customs Tariff Schedule of Chile (Arancel Aduanero Chileno).

2. The base rates of duty set out in this Schedule reflect Chile's Most Favoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded to the nearest hundredth of a Chilean Peso.

4. The following staging categories shall apply to the elimination or reduction of customs duties by Chile pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B4 shall be eliminated in four annual stages, and these goods shall be duty-free effective January 1 of year 4;

(c) customs duties on originating goods provided for in the items in staging category B8 shall be eliminated in eight annual stages, and these goods shall be duty-free effective January 1 of year 8;

(d) customs duties on originating goods provided for in the items in staging category CL-AU FTA-Wheat shall be as established for the same items in the Chile-Australia Free Trade Agreement, done at Canberra, July 30, 2008;

(e) customs duties on originating goods provided for in the items in staging category CL-AU FTA-Sugar shall be as established for the same items in the Chile-Australia Free Trade Agreement, done at Canberra, July 30, 2008;

(f) customs duties on originating goods provided for in the items in staging category CL-P4-Wheat shall be eliminated subject to the conditions for the same items in the Trans-Pacific Strategic Economic Partnership Agreement (P4), done at Wellington, July 18, 2005;

(g) customs duties on originating goods provided for in the items in staging category CL-P4-Sugar shall be eliminated subject to the conditions for the same items in the Trans-Pacific Strategic Economic Partnership Agreement (P4), done at Wellington, July 18, 2005;

(h) customs duties on originating goods provided for in the items in staging category CL-CA FTA-Wheat shall be as established for the same items in the Canada-Chile Free Trade Agreement, done at Santiago, December 5, 1996;

(i) customs duties on originating goods provided for in the items in staging category CL-CA FTA-Sugar shall be as established for the same items in the Canada-Chile Free Trade Agreement, done at Santiago, December 5, 1996;

(j) customs duties on originating goods provided for in the items in staging category CL-JP SEP-Wheat shall be as established for the same items in the Agreement between Japan and the Republic of Chile for a Strategic Economic Partnership, done at Tokyo, March, 27, 2007;

(k) customs duties on originating goods provided for in the items in staging category CL-JP SEP-Sugar shall be as established for the same items in the Agreement between Japan and the Republic of Chile for a Strategic Economic Partnership, done at Tokyo, March, 27, 2007;

(l) customs duties on originating goods provided for in the items in staging category CL-MY-Wheat shall be eliminated at entry into force of this Agreement for Chile and Malaysia for the ad valorem component only. The specific duty shall apply as provided for in Law 18.525 or its successor;

(m) customs duties on originating goods provided for in the items in staging category CL-MY-Sugar shall be eliminated at entry into force of this Agreement for Chile and Malaysia for the ad valorem component only. The specific duty shall apply as provided for in Law 18.525 or its successor;

(n) customs duties on originating goods provided for in the items in staging category CL-MX FTA-Wheat shall be as established for the same items in the Free Trade Agreement between the Republic of Chile and the United Mexican States (ACE-No41), done at Santiago, April 17, 1998;

(o) customs duties on originating goods provided for in the items in staging category CL-MX FTA-Sugar shall be as established for the same items in the Free Trade Agreement between the Republic of Chile and the United Mexican States (ACE-No41), done at Santiago, April 17, 1998;

(p) customs duties on originating goods provided for in the items in staging category CL-PE FTA-Wheat shall be as established for the same items in the Chile-Peru Free Trade Agreement (ACE-No38), done at Lima, August 22, 2006;

(q) customs duties on originating goods provided for in the items in staging category CL-PE FTA-Sugar shall be as established for the same items in the Chile-Peru Free Trade Agreement (ACE-No38), done at Lima, August 22, 2006;

(r) customs duties on originating goods provided for in the items in staging category CL-US FTA-Wheat shall be as established for the same items in the Chile-United States Free Trade Agreement, done at Miami, June 6, 2003;

(s) customs duties on originating goods provided for in the items in staging category CL-US FTA-Sugar shall be as established and subject to the conditions for the same items in the Chile-United States Free Trade Agreement, done at Miami, June 6, 2003;

(t) customs duties on originating goods provided for in the items in staging category CL-VN-Wheat shall be eliminated at entry into force of this Agreement for Chile and Viet Nam for the ad valorem component only. The specific duty shall apply as provided for in Law 18.525 or its successor;

(u) customs duties on originating goods provided for in the items in staging category CL-VN-Sugar shall be eliminated at entry into force of this Agreement for Chile and Viet Nam for the ad valorem component only. The specific duty shall apply as provided for in Law 18.525 or its successor; and

(v) customs duties on originating goods provided for in the items in staging category CL-MFN shall be the Most-Favoured-Nation rate of duty.

5. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

(a) Upon request from Japan, Chile and Japan shall consult to consider Chile's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule no sooner than seven years after the date of entry into force of this Agreement for Chile and Japan, with a view to increasing market access.

(b) Following completion of applicable legal procedures by Chile and another State or customs territory necessary for entry into force of an international agreement, or an amendment thereto, granting preferential market access by Chile to that other State or customs territory, and on request of Japan, Chile and Japan shall consult to consider Chile's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule, with a view to providing to the originating goods treatment equivalent to that provided to goods classified in the same tariff lines under the international agreement. Chile and Japan shall consult no later than one month after the date of the request, unless Chile and Japan agree otherwise.

(c) For greater certainty, nothing in this paragraph shall be construed to affect the rights or obligations of Chile under any other provision of this Agreement.

TARIFF SCHEDULE OF CHILE (HS2012)

ANNEX 2-D

TARIFF SCHEDULE OF JAPAN GENERAL NOTES

1. The nine-digit codes of the tariff classification number of Japan referred to in this Schedule are based on the national nomenclature of Japan (Statistical Code Lists for Imports as of April 1, 2015.). For greater certainty, they are subject to change in accordance with the laws, regulations or public notifications of Japan, and shall be referred to together with the correlation tables published in accordance with Article 2.16(k) (Publication) in case of any change of national nomenclature of Japan. This Schedule is made based on the Harmonized System, as amended on 1 January 2012.

2. The base rates of duty set out in this Schedule reflect Japan's Most Favoured-Nation (MFN) rates of duty in effect on January 1, 2010, except for items identified by an asterisk ("*") adjacent to the base rate. For these items, the applicable base rates of duty are otherwise indicated in this Schedule.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded to the nearest hundredth of a Japanese Yen.

4. The following staging categories shall apply to the elimination or reduction of customs duties by Japan pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties other than the levy on originating goods provided for in the items in staging category JPEIF* shall be eliminated entirely on the date of entry into force of this Agreement for Japan. The rate of the levy charged on these goods shall be the rate subtracting 1.5 yen per kilogramme from the rate of the levy on sugar centrifugal of cane sugar classified under the tariff item 170114.110, whose content of sucrose by weight, in the dry state, corresponds to a polarimetric reading of less than 98.5 degrees;

(c) customs duties on originating goods provided for in the items in staging category B4 shall be eliminated in four annual stages, and these goods shall be duty-free effective April 1 of Year 4;

(d) customs duties on originating goods provided for in the items in staging category B6 shall be eliminated in six annual stages, and these goods shall be duty-free effective April 1 of Year 6;

(e) customs duties on originating goods provided for in the items in staging category JPB6* shall be eliminated as follows:

(i) the customs duties shall be reduced by 20 per cent of the base rate on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in five annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 6;

(f) customs duties on originating goods provided for in the items in staging category JPB6** shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan; and

(g) customs duties on originating goods provided for in the items in staging category JPB6*** shall remain at the base rate until March 31 of Year 5, and these goods shall be duty-free effective April 1 of Year 6;

(h) customs duties on originating goods provided for in the items in staging category JPB6**** shall be eliminated as follows:

(i) the customs duties shall be reduced to 25 per cent ad valorem and 40 yen per kilogramme on the date of entry into force of this Agreement for Japan; and

(j) customs duties on originating goods provided for in the items in staging category B8 shall be eliminated in eight annual stages, and these goods shall be duty-free effective April 1 of Year 8;

(k) customs duties on originating goods provided for in the items in staging category JPB8* shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in seven annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 8;

(l) customs duties on originating goods provided for in the items in staging category JPB8** shall be eliminated as follows:

(i) the customs duties shall be reduced by 20 per cent of the base rate on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall remain at the level set out in subparagraph (i) until March 31 of Year 3; and

(iii) the customs duties shall be eliminated from the level set out in subparagraph (i) in five annual stages beginning on April 1 of Year 4, and these goods shall be duty-free effective April 1 of Year 8;

(m) customs duties on originating goods provided for in the items in staging category JPB8*** shall be eliminated as follows:

(i) the customs duties shall be reduced by one third of the base rate on the date of entry into force of this Agreement for Japan; and

(n) customs duties on originating goods provided for in the items in staging category JPB8**** shall be eliminated as follows:

(i) the customs duties shall be reduced to 10 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 44.67 yen per litre, on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall be reduced to 8.5 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 35.73 yen per litre, on April 1 of Year 2;

(iii) the customs duties shall be reduced to 7.1 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 26.80 yen per litre, on April 1 of Year 3;

(iv) the customs duties shall be reduced to 5.7 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 17.87 yen per litre, on April 1 of Year 4;

(v) the customs duties shall be reduced to 4.2 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 8.93 yen per litre, on April 1 of Year 5;

(vi) the customs duties shall be reduced to 2.8 per cent ad valorem or 125 yen per litre, whichever is less, on April 1 of Year 6;

(vii) the customs duties shall be reduced to 1.4 per cent ad valorem or 125 yen per litre, whichever is less, on April 1 of Year 7; and

(viii) these goods shall be duty-free effective April 1 of Year 8;

(o) customs duties on originating goods provided for in the items in staging category JPB8***** shall be eliminated as follows:

(ii) the customs duties shall be reduced to 8.5 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 38.29 yen per litre, on April 1 of Year 2;

(iii) the customs duties shall be reduced to 7.1 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 31.90 yen per litre, on April 1 of Year 3;

(iv) the customs duties shall be reduced to 5.7 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 25.52 yen per litre, on April 1 of Year 4;

(v) the customs duties shall be reduced to 4.2 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 19.14 yen per litre, on April 1 of Year 5;

(vi) the customs duties shall be reduced to 2.8 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 12.76 yen per litre, on April 1 of Year 6;

(vii) the customs duties shall be reduced to 1.4 per cent ad valorem or 125 yen per litre, whichever is less, subject to a minimum duty of 6.38 yen per litre, on April 1 of Year 7; and

(viii) these goods shall be duty-free effective April 1 of Year 8;

(p) customs duties on originating goods provided for in the items in staging category B9 shall be eliminated in nine annual stages, and these goods shall be duty-free effective April 1 of Year 9;

(q) customs duties on originating goods provided for in the items in staging category JPB10* shall be eliminated as follows:

(i) the customs duties shall be reduced to 2.2 per cent ad valorem on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in nine annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 10;

(r) customs duties on originating goods provided for in the items in staging category B11 shall be eliminated in 11 annual stages, and these goods shall be duty-free effective April 1 of Year 11;

(s) customs duties on originating goods provided for in the items in staging category JPB11* shall be:

(i) from the date of entry into force of this Agreement for Japan until March 31 of Year 10, the difference between:

(A) the sum of:

(1) the value per kilogramme obtained by multiplying the value for customs duty per kilogramme by the Coefficient; and

(2) the value per kilogramme set out in Column 2 of the table below; and

For the purposes of this subparagraph, the Coefficient shall be the difference between:

(3) 100 per cent plus the rate set out in Column 3 of the table below; and

(4) the value obtained by dividing the value per kilogramme set out in Column 2 in the table below by 897.59 yen per kilogram; and

(B) the value for customs duty per kilogramme; and

(ii) zero, effective April 1 of Year 11;

(t) customs duties on originating goods provided for in the items in staging category JPB11** shall be eliminated as follows:

(i) the customs duties shall be reduced to 4.3 per cent ad valorem on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall be reduced to 2.2 per cent ad valorem from the level set out in subparagraph (i) in four annual stages beginning on April 1 of Year 2; and

(iii) the customs duties shall be eliminated from the level set out in subparagraph (ii) in six annual stages beginning on April 1 of Year 6, and these goods shall be duty-free effective April 1 of Year 11;

(u) customs duties on originating goods provided for in the items in staging category JPB11*** shall be eliminated as follows:

(i) the customs duties shall be reduced by 25 per cent of the base rate on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in 10 annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 11;

(v) customs duties on originating goods provided for in the items in staging category JPB11**** shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall remain at the level set out in subparagraph (i) until March 31 of Year 10; and

(iii) the customs duties shall be eliminated and, these goods shall be duty-free effective April 1 of Year 11;

(w) customs duties on originating goods provided for in the items in staging category JPB11***** shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan; and

(x) customs duties on originating goods provided for in the items in staging category JPB12* shall be eliminated as follows:

(i) the customs duties shall remain at the base rate until March 31 of Year 8; and

(ii) the customs duties shall be eliminated from the base rate in four annual stages beginning on April 1 of Year 9, and these goods shall be duty-free effective April 1 of Year 12;

(y) customs duties on originating goods provided for in the items in staging category JPB13* shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in 12 annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 13;

(z) customs duties on originating goods provided for in the items in staging category JPB13** shall be eliminated as follows:

(i) the customs duties shall be reduced by 20 per cent of the base rate on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall remain at the level set out in subparagraph (i) until March 31 of Year 6; and

(iii) the customs duties shall be eliminated from the level set out in subparagraph (ii) in seven annual stages beginning on April 1 of Year 7, and these goods shall be duty-free effective April 1 of Year 13;

ANNEX 2-D – GENERAL NOTES – JAPAN – 8

(aa) customs duties on originating goods provided for in the items in staging category JPB13*** shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall remain at the level set out in subparagraph (i) until March 31 of Year 6;

(iii) the customs duties shall be reduced by 25 per cent of the base rate from the level set out in subparagraph (ii) on April 1 of Year 7;

(iv) the customs duties shall remain at the level set out in subparagraph (iii) until March 31 of Year 12; and

(v) the customs duties shall be eliminated, and these goods shall be duty-free effective April 1 of Year 13;

(bb) customs duties on originating goods provided for in the items in staging category B16 shall be eliminated in 16 annual stages, and these goods shall be duty-free effective April 1 of Year 16;

(cc) customs duties on originating goods provided for in the items in staging category JPB16* shall be:

(i) from the date of entry into force of this Agreement for Japan until March 31 of Year 15, the lesser of:

(A) the difference between the value for customs duty per unit and the value per each obtained by multiplying 20,400.55 yen per each by 100 per cent plus the rate set out in Column 3 of the table below; and

(B) the value set out in Column 2 of the table below; and

(ii) zero, effective April 1 of Year 16;

(dd) customs duties on originating goods provided for in the items in staging category JPB16** shall be eliminated as follows:

(i) the customs duties shall be reduced to 25 per cent ad valorem and 40 yen per kilogramme on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in 15 annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 16;

(ee) customs duties on originating goods provided for in the items in staging category JPB16*** shall be eliminated as follows:

(i) the customs duties shall be reduced to 35 per cent ad valorem and 40 yen per kilogramme on the date of entry into force of this Agreement for Japan; and

(ff) customs duties on originating goods provided for in the items in staging category JPB16**** shall be eliminated as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall remain at the level set out in subparagraph (i) until March 31 of Year 15; and

ANNEX 2-D – GENERAL NOTES – JAPAN – 10

(iii) the customs duties shall be eliminated and these goods shall be duty-free effective April 1 of Year 16;

(gg) customs duties on originating goods provided for in the items in staging category JPB21* shall be eliminated as follows:

(i) the customs duties shall be reduced to 25 per cent ad valorem and 40 yen per kilogramme on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in 20 annual stages beginning on April 1 of Year 2, and these goods shall be duty-free effective April 1 of Year 21;

(hh) customs duties on originating goods provided for in the items in staging category JPB21** shall be eliminated as follows:

(i) the customs duties shall be reduced to 35 per cent ad valorem and 40 yen per kilogramme on the date of entry into force of this Agreement for Japan; and

(ii) customs duties on originating goods provided for in the items in staging category JPB21*** shall be eliminated as follows:

(i) the customs duties shall be reduced by 80 per cent of the base rate in 11 annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall be eliminated from the level set out in subparagraph (i) in 10 annual stages beginning on April 1 of Year 12, and these goods shall be duty-free effective April 1 of Year 21;

(jj) customs duties on originating goods provided for in the items in staging category JPR2 shall be reduced as follows:

(i) (A) the customs duties shall be reduced to 27.5 per cent ad valorem on the date of entry into force of this Agreement for Japan;

(B) the customs duties shall be reduced to 20 per cent ad valorem from the level set out in subparagraph (A) in nine annual stages beginning on April 1 of Year 2;

(C) the customs duties shall be reduced to 9 per cent ad valorem from the level set out in subparagraph (B) in six annual stages beginning on April 1 of Year 11; and

(D) the customs duties shall remain at 9 per cent ad valorem from Year 16; and

(ii) notwithstanding subparagraph (i), if the customs duties on the originating goods as defined in subparagraph (o) of Article 1.2 of the Agreement between Japan and Australia for an Economic Partnership (JAEPA), which are classified under headings 02.01 and 02.02 under the JAEPA, are less than those set out in subparagraph (i) under this Agreement at any time, the former rate shall apply to the originating goods provided for in the items in staging category JPR2 under this Agreement;

(kk) customs duties on originating goods provided for in the items in staging category JPR3 shall be reduced as follows:

(i) the customs duties shall be reduced to 39 per cent ad valorem on the date of entry into force of this Agreement for Japan;

(ii) the customs duties shall be reduced to 20 per cent ad valorem from the level set out in subparagraph (i) in nine annual stages beginning on April 1 of Year 2;

(iii) the customs duties shall be reduced to 9 per cent ad valorem from the level set out in subparagraph (ii) in six annual stages beginning on April 1 of Year 11; and

(iv) the customs duties shall remain at 9 per cent ad valorem from Year 16;

(ll) customs duties on originating goods provided for in the items in staging category JPR4 shall be the lesser of:

(i) the difference between the value of the customs duty per kilogramme and the value per kilogramme obtained by multiplying 393 yen per kilogramme by 100 per cent plus the rate set out in Column 3 of the table below; and

(ii) the value set out in Column 2 of the table below;

(mm) customs duties on originating goods provided for in the items in staging category JPR5 shall be the lesser of:

(i) the difference between the value of the customs duty per kilogramme and the value per kilogramme obtained by multiplying 524 yen per kilogramme by 100 per cent plus the rate set out in Column 3 of the table below; and

(ii) the value set out in Column 2 of the table below;

(nn) customs duties on originating goods provided for in the items in staging category JPR6 shall be reduced as follows:

(i) the customs duties shall be reduced by 70 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(oo) customs duties on originating goods provided for in the items in staging category JPR7 shall be reduced by 10 per cent of the base rate on the date of entry into force of this Agreement for Japan and shall remain at that level thereafter;

(pp) customs duties on originating goods provided for in the items in staging category JPR8 shall be reduced as follows:

(i) the customs duties shall be reduced by 55 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(qq) customs duties on originating goods provided for in the items in staging category JPR9 shall be reduced as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(rr) customs duties on originating goods provided for in the items in staging category JPR10 shall be reduced as follows:

(i) the customs duties shall be reduced by 90 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

ANNEX 2-D – GENERAL NOTES – JAPAN – 14

(ss) customs duties on originating goods provided for in the items in staging category JPR11 shall be reduced as follows:

(i) the customs duties shall be reduced by 72 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(tt) customs duties on originating goods provided for in the items in staging category JPR12 shall be reduced as follows:

(i) the customs duties shall be reduced by 75 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(uu) customs duties on originating goods provided for in the items in staging category JPR13 shall be reduced as follows:

(i) the customs duties shall be reduced by 50 per cent of the base rate in 11 annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 11;

(vv) customs duties on originating goods provided for in the items in staging category JPR14 shall be reduced by 15 per cent of the base rate on the date of entry into force of this Agreement for Japan and shall remain at that level thereafter;

(ww) customs duties on originating goods provided for in the items in staging category JPR15 shall be reduced by 25 per cent of the base rate on the date of entry into force of this Agreement for Japan and shall remain at that level thereafter;

(xx) customs duties on originating goods provided for in the items in staging category JPR16 shall be reduced as follows:

(i) the customs duties shall be reduced by 15 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

ANNEX 2-D – GENERAL NOTES – JAPAN – 15

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(yy) customs duties on originating goods provided for in the items in staging category JPR17 shall be reduced by five per cent of the base rate on the date of entry into force of this Agreement for Japan and shall remain at that level thereafter;

(zz) customs duties on originating goods provided for in the items in staging category JPR18 shall be reduced as follows:

(i) the customs duties shall be reduced by 25 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(aaa) customs duties on originating goods provided for in the items in staging category JPR19 shall be reduced as follows:

(i) the customs duties shall be reduced by 15 per cent of the base rate in four annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 4;

(bbb) customs duties on originating goods provided for in the items in staging category JPR20 shall be reduced as follows:

(i) the customs duties shall be reduced by 60 per cent of the base rate in nine annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 9;

(ccc) customs duties on originating goods provided for in the items in staging category JPR21 shall be reduced as follows:

(i) the customs duties shall be reduced by 55 per cent of the base rate in nine annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 9;

ANNEX 2-D – GENERAL NOTES – JAPAN – 16

(ddd) customs duties on originating goods provided for in the items in staging category JPR22 shall be reduced as follows:

(i) the customs duties shall be reduced by 60 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(eee) customs duties on originating goods provided for in the items in staging category JPR23 shall be reduced as follows:

(i) the customs duties shall be reduced by 63 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(fff) customs duties on originating goods provided for in the items in staging category JPR24 shall be reduced as follows:

(i) the customs duties shall be reduced by 66.6 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(ggg) customs duties on originating goods provided for in the items in staging category JPR25 shall be reduced as follows:

(i) the customs duties shall be reduced by 67 per cent of the base rate in six annual stages beginning on the date of entry into force of this Agreement for Japan; and

(ii) the customs duties shall remain at the level set out in subparagraph (i) from Year 6;

(hhh) for originating goods provided for in the items in staging category JPM1, which are subject to quotas under the WTO Agreement, the maximum amount that Japan may add to the amount paid for these goods when setting the minimum selling price (maximum import mark-up to set the minimum selling price) shall be as follows:

(i) 16.2 yen per kilogramme for Year 1;

(ii) 15.3 yen per kilogramme for Year 2;

(iii) 14.5 yen per kilogramme for Year 3;

(iv) 13.6 yen per kilogramme for Year 4;

(v) 12.8 yen per kilogramme for Year 5;

(vi) 11.9 yen per kilogramme for Year 6;

(vii) 11.1 yen per kilogramme for Year 7;

(viii) 10.2 yen per kilogramme for Year 8; and

(ix) 9.4 yen per kilogramme for Year 9 and for each subsequent year;

(iii) for originating goods provided for in the items in staging category JPM2, which are subject to quotas under the WTO Agreement, the maximum import mark-up to set the minimum selling price shall be as follows:

(i) 7.6 yen per kilogramme for Year 1;

(ii) 7.2 yen per kilogramme for Year 2;

(iii) 6.8 yen per kilogramme for Year 3;

(iv) 6.4 yen per kilogramme for Year 4;

(v) 6.0 yen per kilogramme for Year 5;

(vi) 5.6 yen per kilogramme for Year 6;

(vii) 5.2 yen per kilogramme for Year 7;

(viii) 4.8 yen per kilogramme for Year 8; and

(ix) 4.4 yen per kilogramme for Year 9 and for each subsequent year;

(jjj) customs duties on originating goods provided for in the items in staging category TRQ shall be governed by the terms of TRQ applicable to that tariff item, as set out in Appendix A (Tariff Rate Quotas of Japan) to this Schedule; and

(kkk) customs duties on originating goods provided for in the items in staging category MFN shall be at the most-favoured-nation rate of customs duties in effect at the time of import.

5. Originating goods provided for in the items marked with the designation "SG-[n]" in this Schedule shall be subject to the corresponding safeguard measure set out in Appendix B-1 (Agricultural Safeguard Measures) and Appendix B-2 (Forest Good Safeguard Measure) to this Schedule.

6. For the purposes of implementing annual stages of tariff reduction provided for in this Schedule, the following shall apply:

(a) the reduction for Year 1 shall take place on the date of entry into force of this Agreement for Japan; and

(b) the subsequent annual reductions shall take place each April 1 thereafter.

7. For the purposes of this Schedule, year means, with respect to Year 1, the period from the date of entry into force of this Agreement for Japan until the following March 31 and, with respect to each subsequent Year, the twelve-month period which starts on April 1 of that year.

8. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) of Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

(a) Upon request from Australia, Canada, Chile, New Zealand or the United States, Japan and the requesting Party shall consult to consider Japan's commitments to the requesting Party regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule no sooner than seven years after the date of entry into force of this Agreement for Japan and the requesting Party, with a view to increasing market access.

(b) Following completion of applicable legal procedures by Japan and another State or customs territory necessary for entry into force of an international agreement, or an amendment thereto, granting preferential market access by Japan to that other State or customs territory, and on request of Australia, Canada, Chile, New Zealand or the United States, Japan and the requesting Party shall consult to consider Japan's commitments to the requesting Party regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule, with a view to providing to the originating goods treatment equivalent to that provided to goods classified in the same tariff lines under the international agreement. Japan and the requesting Party shall consult no later than one month after the date of the request, unless Japan and the requesting Party agree otherwise.

(c) For greater certainty, nothing in this paragraph shall be construed to affect the rights or obligations of Japan under any other provision of this Agreement.

10. Appendix C (Tariff Differentials) to this Schedule shall apply when Japan applies different rates of customs duty to other Parties for an originating good specified in that Appendix.

TARIFF SCHEDULE OF JAPAN (HS2012)

APPENDIX A

TARIFF RATE QUOTAS OF JAPAN

Section A: General Provisions

1. For the purposes of paragraph 4(jjj) of the General Notes of the Tariff Schedule of Japan, customs duties on originating goods provided for in the tariff items indicated with "TWQ-n" or "CSQ-n" in Column "Remarks" in the Tariff Schedule of Japan shall be governed by the terms of the TRQ for that specific tariff items, as set out in this Appendix, beginning on the date of entry into force of this Agreement for Japan.

2. For the purposes of implementing annual stages in this Appendix, the following shall apply:

(a) the reduction for Year 1 shall take place on the date of entry into force of this Agreement for Japan; and

(b) the subsequent annual reductions shall take place on April 1 of each following year.

3. For the purposes of this Appendix, year means, with respect to Year 1, the period from the date of entry into force of this Agreement for Japan until the following March 31 and, with respect to each subsequent Year, the twelve-month period which starts on April 1 of that year.

4. In this Appendix, the descriptions of product or products in the title of each TRQ are not necessarily exhaustive. These descriptions are included solely to assist users in understanding this Appendix and shall not alter or supersede the coverage for each TRQ established by reference to the relevant tariff items.

Section B: TPP Wide TRQs (TWQs)

1. TWQ-JP1: Wheat Products

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties that shall be duty-free, subject to an import mark-up applied by Japan as provided in subparagraph (d), in a particular year is specified below:

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 10,000 metric tonnes.

(b) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 190410.221, 190420.221, 190430.010, 190490.210 and 210690.214.

(d) TWQ-JP1 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by the Ministry of Agriculture, Forestry and Fisheries of Japan (MAFF), or its successor, as a State Trading Enterprise using a simultaneous buy-sell (SBS) mechanism. Japan may collect the import mark-up for goods imported under the TRQ set out in this paragraph. The amount of the import mark-up shall not exceed the amount permitted for the good under Japan's Schedule to the WTO Agreement.

2. TWQ-JP2: Food Preparations Made Primarily of Wheat

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties that shall be duty-free in a particular year is specified below:

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 22,500 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 190190.242, 190190.247, 190190.252 and 190190.267.

(d) TWQ-JP2 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

3. TWQ-JP3: Wheat Flour, Pellets, Rolled and Food Preparations

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 7,500 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 110100.011, 110100.091, 110290.210, 110311.010, 110319.210, 110320.110, 110320.510, 110419.111, 110419.121, 110429.111, 110429.121, 110811.010, 190120.131, 190120.151, 190190.151 and 190190.171.

(d) TWQ-JP3 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism. Japan may collect the import mark-up for goods imported under the TRQ set out in this paragraph. The amount of the import mark-up shall not exceed the amount permitted for the good under Japan's Schedule to the WTO Agreement.

4. TWQ-JP4: Uncooked Udon, Somen and Soba

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from the other Parties that shall be duty-free in a particular year is specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 100 metric tonnes.

(b) The rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from the other Parties imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) TWQ-JP4 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

5. TWQ-JP5: Food Preparations of Barley

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 115 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 190120.141, 190190.161, 190420.231, 190490.310 and 210690.216.

(d) TWQ-JP5 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism. Japan may collect the import mark-up for goods imported under the TRQ set out in this paragraph. The amount of the import mark-up shall not exceed the amount permitted for the good under Japan's Schedule to the WTO Agreement.

6. TWQ-JP6: Barley Flour, Groats and Pellets

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 500 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 110290.110, 110319.110, 110320.410, 110419.410, 110429.410 and 190410.231.

(d) TWQ-JP6 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism. Japan may collect the import mark-up for goods imported under the TRQ set out in this paragraph. The amount of the import mark-up shall not exceed the amount permitted for the good under Japan's Schedule to the WTO Agreement.

7. TWQ-JP7: Barley

For Year 10 and for each subsequent year, the aggregate quota quantity shall remain at 65,000 metric tonnes. For Year 10 and for each subsequent year, the maximum import mark-up to set the minimum selling price shall remain at 4.4 yen per kilogramme.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 100310.010 and 100390.019.

(d) TWQ-JP7 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism. A longer shipping period based on a trading contract between an importer and a producer shall be allowed.

(e) For the purposes of TWQ-JP7, maximum import mark-up to set the minimum selling price means the maximum amount that MAFF, or its successor, may add to the amount paid for goods when it sets the minimum selling price at or above which MAFF, or its successor, shall not reject a bid in an SBS tender unless the tender amount in the SBS tender is fully subscribed through higher bids.

(f) The difference between the amount paid by the purchaser in an SBS transaction for goods and the amount paid by MAFF, or its successor, for the goods shall be retained by MAFF, or its successor, as the import mark-up for the goods, which can be more

than the maximum import mark-up to set the minimum selling price but shall not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement.

8. TWQ-JP8: Fresh Cheese for Use as Materials for Shredded Cheese

(a) The in-quota rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from the other Parties shall be duty-free, when:

(i) the aggregate quota quantity for each year shall be stipulated by laws, regulations or ministerial ordinances of Japan in consideration of the quantity of prospective domestic production of natural cheese for use as materials for shredded cheese, and shall be set at a limit no less than the quantity of prospective domestic production of natural cheese for use as materials for shredded cheese multiplied by the ratio of 3.5; and

(ii) the quota quantity to be allocated for each application made by an importer shall not exceed the limit of the ratio in subparagraph (a)(i) multiplied by the quantity of natural cheese, specified in the application, produced from domestic milk and used by the importer for the production of shredded cheese in Japan.

(b) The rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from the other Parties which do not meet the requirement set out in subparagraph (a) shall be treated in accordance with staging category B16 for cream cheese for containing fat content, by weight, not exceeding 45 per cent, JPR7 for cream cheese for containing fat content, by weight, exceeding 45 per cent, and MFN for others as set out in paragraph 4(bb), 4(oo) and 4(kkk) respectively of the General Notes of the Tariff Schedule of Japan.

(d) TWQ-JP8 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

9. TWQ-JP9: Butter

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (d) from the other Parties, expressed in terms of whole milk equivalent metric tonnes calculated with a conversion factor listed in subparagraph (b) and the in-quota rate of customs duty for those originating goods in a particular year are specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 45,898 whole milk equivalent metric tonnes, and for Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 35 per cent.

(b) For the purposes of TWQ-JP9, the conversion factor set out in the right column of the following schedule indicates the coefficient for a calculation to obtain the weight in whole milk equivalent of the respective originating goods, expressed as tariff classification numbers set out in the left column in the following schedule:

(c) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (d) from the other Parties imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 040510.129, 040510.229, 040520.090, 040590.190 and 040590.229.

(e) TWQ-JP9 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

10. TWQ-JP10: Skimmed Milk Powder

10 24,102 25% + 13yen/kg 35% + 13yen/kg 11 24,102 25% 35%

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 24,102 whole milk equivalent metric tonnes, and for Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 25 per cent for skimmed milk powder (SMP) not containing added sugar, or 35 per cent for SMP containing added sugar.

(b) For the purposes of TWQ-JP10, the conversion factor set out in the right column of the following schedule indicates the coefficient for a calculation to obtain the weight in whole milk equivalent of the respective originating goods, expressed as tariff classification numbers set out in the left column in the following schedule:

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 040210.129, 040210.212, 040210.229, 040221.212, 040221.229 and 040229.291.

(e) TWQ-JP10 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

11. TWQ-JP11: Milk Powder and Butter Milk Powder

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 2,250 whole milk equivalent metric tonnes, and for Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 25 per cent for Butter Milk Powder not containing added sugar, 35 per cent for Butter Milk Powder containing added sugar, or 30 per cent for Milk Powder.

(b) For the purposes of TWQ-JP11, the conversion factor set out in the right column of the following schedule indicates the coefficient for a calculation to obtain the weight in whole milk equivalent of the respective originating goods, expressed as tariff classification numbers set out in the left column in the following schedule:

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 040221.119, 040221.129, 040229.119, 040229.129, 040390.113, 040390.123 and 040390.133.

(e) TWQ-JP11 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

12. TWQ-JP12: Milk Powder

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (d) from the other Parties shall be duty-free, when:

(i) the aggregate volume of imports of the originating goods from the other Parties in any year does not exceed the aggregate quota quantity, expressed in terms of whole milk equivalent metric tonnes calculated with a conversion factor listed in subparagraph (b), specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 60,000 metric tonnes; and

(ii) the quota quantity to be allocated for each application made by an importer shall not exceed the limit of three multiplied by the quantity of the milk powder, specified in application, produced from domestic milk and used by the importer for the production of chocolate in Japan.

(b) For the purposes of TWQ-JP12, the conversion factor set out in the right column of the following schedule indicates the coefficient for a calculation to obtain the weight in whole milk equivalent of the respective originating goods, expressed as tariff classification numbers set out in the left column in the following schedule:

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 040221.119 and 040221.129.

(e) TWQ-JP12 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

13. TWQ-JP13: Food Preparations Containing Cocoa

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from the other Parties and the in-quota rate of customs duty in a particular year are specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 5,500 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 10.6 per cent.

(d) TWQ-JP13 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

14. TWQ-JP14: Food Preparations Containing Cocoa

(a) The in-quota rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from the other Parties shall be duty-free, when:

(i) the aggregate volume of imports of the originating goods from the other Parties in any year does not exceed the aggregate quota quantity specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 12,000 metric tonnes; and

(d) TWQ-JP14 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

15. TWQ-JP15: Prepared Edible Fats and Oils

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 2,300 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 10.6 per cent.

(d) TWQ-JP15 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

16. TWQ-JP16: Evaporated Milk

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties shall be duty-free, when:

(i) the aggregate volume of imports of the originating goods from the other Parties in any year does not exceed the aggregate quota quantity specified below:

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 4,750 metric tonnes; and

(ii) the originating goods are liquid at ordinary temperature, approximately from 1 to 32 degrees Celsius.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 040291.129 and 040291.290.

(d) TWQ-JP16 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

17. TWQ-JP17: Condensed Milk

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 750 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 040299.129 and 040299.290.

(d) TWQ-JP17 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

18. TWQ-JP18: Chewing Gum and Other Sugar Confectionery, Containing Cocoa

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 360 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 180620.111 and 180620.119.

(d) TWQ-JP18 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

19. TWQ-JP19: Cocoa Preparations, Containing Added Sugar Weighing Not More Than 2 kg

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 5,000 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 180632.211, 180632.219, 180690.211 and 180690.219.

(d) TWQ-JP19 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

20. TWQ-JP20: Coffee, Tea Mixes, Food Preparations and Doughs

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 12,000 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 170290.219, 190120.239, 190190.217, 190190.248, 190190.253, 210112.110, 210112.246, 210120.246, 210690.251, 210690.271, 210690.272, 210690.279 and 210690.281.

(d) TWQ-JP20 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

21. TWQ-JP21: Preparations of Peas, Beans and Leguminous Vegetables

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 800 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 200540.190, 200551.190 and 200599.119.

(d) TWQ-JP21 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

22. TWQ-JP22: Candies, White Chocolate and Confectionary

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 6,000 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 170490.210, 170490.230 and 170490.290.

(d) TWQ-JP22 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

23. TWQ-JP23: Chocolate

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 18,000 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 180631.000, 180632.100 and 180690.100.

(d) TWQ-JP23 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

24. TWQ-JP24: Food Preparations

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 3,000 metric tonnes.

(d) TWQ-JP24 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

25. TWQ-JP25: Cane Sugar Under 98.5 Polarimetric

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties shall be duty-free, when:

(i) the aggregate volume of imports of the originating goods from the other Parties in any year does not exceed the aggregate quota quantity specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 25 metric tonnes; and

(ii) the originating goods are in containers for retail sale and do not exceed a net weight of 1 kilogramme per container.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 170113.000 and 170114.190.

(d) TWQ-JP25 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

26. TWQ-JP26: Cocoa Powder

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 7,500 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of

customs duty shall remain at 14.9 per cent.

(d) TWQ-JP26 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

27. TWQ-JP27: Cocoa Preparations, Containing Added Sugar Weighing More Than 2 kg

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 18,600 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 16.8 per cent.

(d) TWQ-JP27 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

28. TWQ-JP28: Food Preparations

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 2,700 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 14.0 per cent.

(d) TWQ-JP28 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

29. TWQ-JP29: Food Preparation Containing More Than 50 Per Cent of Sucrose

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 12,300 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of

customs duty shall remain at 17.9 per cent.

(d) TWQ-JP29 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

30. TWQ-JP30: Food Preparations (Sugar is the Largest Ingredient)

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 75 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 210690.282 and 210690.510.

(d) TWQ-JP30 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

31. TWQ-JP31: Food Preparations Containing Sugar and Dairy

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 8,200 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at 17.9 per cent.

(d) TWQ-JP31 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

32. TWQ-JP32: Sugar

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties shall be duty-free, subject to levies which shall be refunded in accordance with the laws and regulations of Japan, when:

(i) the aggregate volume of imports of the originating goods from the other Parties in any year does not exceed the aggregate quota quantity specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 500 metric tonnes; and

(ii) the originating goods are imported with certificate of product testing and development which certifies the originating goods meet criteria and conditions set out in the laws and regulations of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 170112.100, 170112.200, 170114.110, 170114.200, 170191.000, 170199.100, 170199.200, 170290.110, 170290.211, 170290.521 and 210690.221.

(d) TWQ-JP32 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate shall be issued by Japan.

33. TWQ-JP33: Starch

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (d) in a particular year is specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 7,500 metric tonnes.

(b) (i) The in-quota rate of customs duty on originating goods provided for in the tariff items 110812.090, 110813.090, 110814.090, 110819.019 and 110819.099 from the other Parties shall be duty-free, subject to levy of up to 25 per cent only if those originating goods are imported for manufacturing starch sugar, dextrin, dextrin glue, dissolve starch, roasted starch or starch glue.

(ii) The in-quota rate of customs duty on originating goods provided for in the tariff item 110812.090 imported for the other purposes than those stipulated in subparagraph (b)(i) shall be 12.5 per cent.

(iii) The in-quota rate of customs duty on originating goods provided for in the tariff items 190120.159 (not containing added sugar) and 190190.179 (not containing added sugar) shall be 16 per cent.

(iv) The in-quota rate of customs duty on originating goods provided for in the tariff items 110813.090, 110814.090, 110819.019 and 110819.099 imported for the other purposes than those stipulated in subparagraph (b)(i) shall be 25 per cent.

(v) The in-quota rate of customs duty on originating goods provided for in the tariff items 110820.090, 190120.159 (containing added sugar) and 190190.179 (containing added sugar) shall be 25 per cent.

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 110812.090, 110813.090, 110814.090, 110819.019, 110819.099, 110820.090, 190120.159 and 190190.179.

(e) TWQ-JP33 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

Section C: Country-Specific TRQs (CSQs)

1. CSQ-JP1: Rice for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from the United States that shall be duty-free, subject to an import mark-up applied by Japan as provided in subparagraph (e), in a particular year is specified below:

For Year 14 and for each subsequent year, the aggregate quota quantity shall remain at 70,000 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 100610.010, 100620.010, 100630.010, 100640.010, 110290.310, 110319.510, 110320.350, 110419.250, 110429.250, 190120.122, 190120.162, 190190.142, 190190.587, 190410.211, 190420.211, 190490.120 and 210690.517.

(d) For the purposes of CSQ-JP1, a good is from the United States if the good is harvested in the United States or produced in the United States from rice harvested in the United States.

(e) CSQ-JP1 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism. Japan may collect the import mark-up for goods imported under the TRQ set out in this paragraph. The amount of the import mark-up shall not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement.

2. CSQ-JP2: Rice for Australia

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from Australia that shall be duty-free, subject to an import mark-up applied by Japan as provided in subparagraph (e), in a particular year is specified below:

For Year 14 and for each subsequent year, the aggregate quota quantity shall remain at 8,400 metric tonnes.

(d) For the purposes of CSQ-JP2, a good is from Australia if the good is harvested in Australia or produced in Australia from rice harvested in Australia.

(e) CSQ-JP2 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism. Japan may collect the import mark-up for goods imported under the TRQ set out in this paragraph. The amount of the import mark-up shall not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement.

3. CSQ-JP3: Mixes and Doughs and Cake Mixes for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from the United States that shall be duty-free in a particular year is specified below:

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 12,000 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 190120.222, 190120.232, 190120.235 and 190120.243.

(d) For the purposes of CSQ-JP3, a good is from the United States if the good is produced in the United States exclusively from materials produced in the United States or from any materials not produced in the United States classified in a different HS Chapter than the one for the good.

(e) CSQ-JP3 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

4. CSQ-JP4: Mixes and Doughs and Cake Mixes for Parties Other than the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from other Parties other than the United States that shall be duty-free in a particular year is specified below:

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 8,000 metric tonnes.

(b) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the other Parties except the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 190120.222, 190120.232, 190120.235 and 190120.243.

(d) For the purposes of CSQ-JP4, a good is from a Party other than the United States if the good is produced in one or more Parties other than the United States from:

(i) materials produced in one or more Parties other than the United States;

(ii) other materials of a different HS Chapter than the HS Chapter of the good; or

(iii) a combination of materials set out in subparagraphs (i) and (ii).

(e) CSQ-JP4 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

5. CSQ-JP5: Wheat for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (d) from the United States that shall be duty-free, subject to an import mark-up applied by Japan as provided in subparagraphs (g) and (h), and the maximum import mark-up to set the minimum selling price for each year for those goods, in a particular year are specified below:

For Year 10 and for each subsequent year, the aggregate quota quantity shall remain at 150,000 metric tonnes. For Year 10 and for each subsequent year, the maximum import mark-up to set the minimum selling price shall remain at 9.4 yen per kilogramme for the originating goods classified under Group 1 and 8.5 yen per kilogramme for the originating goods classified under Group 2.

(b) For the purposes of CSQ-JP5:

(i) Group 1 means Dark Northern Spring, Hard Red Winter, Western White, Canadian Western Red Spring and Australia Standard White (Japan Blend) wheat classes; and

(ii) Group 2 means all wheat classes other than those set out in subparagraph (b)(i).

(c) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (d) from the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 100111.010, 100119.010, 100191.011, 100191.019, 100199.011, 100199.019 and 100860.210.

(e) For the purposes of CSQ-JP5, a good is from the United States if the good is harvested in the United States.

(f) CSQ-JP5 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism.

(g) For the purposes of CSQ-JP5, maximum import mark-up to set the minimum selling price means the maximum amount that MAFF, or its successor, may add to the amount paid for goods when it sets the minimum selling price at or above which MAFF, or its successor, shall not reject a bid in an SBS tender unless the tender amount in the SBS tender is fully subscribed through higher bids.

(h) The difference between the amount paid by the purchaser in an SBS transaction for goods and the amount paid by MAFF, or its successor, for the goods shall be retained by MAFF, or its successor, as the import mark-up for the goods, which can be more than the maximum import mark-up to set the minimum selling price but shall not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement.

6. CSQ-JP6: Wheat for Australia

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (d) from Australia that shall be duty-free, subject to an import mark-up applied by Japan as provided in subparagraphs (g) and (h), and the maximum import mark-up to set the minimum selling price for each year for those goods, in a particular year are specified below:

For Year 10 and for each subsequent year, the aggregate quota quantity shall remain at 50,000 metric tonnes. For Year 10 and for each subsequent year, the maximum import mark-up to set the minimum selling price shall remain at 9.4 yen per kilogramme for the originating goods classified under Group 1 and 8.5 yen per kilogramme for the originating goods classified under Group 2.

(b) For the purposes of CSQ-JP6:

(i) Group 1 means Dark Northern Spring, Hard Red Winter, Western White, Canadian Western Red Spring and Australia Standard White (Japan Blend) wheat classes; and

(ii) Group 2 means all wheat classes other than those set out in subparagraph (i).

(c) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (d) from Australia imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 100111.010, 100119.010, 100191.011, 100191.019, 100199.011, 100199.019 and 100860.210.

(e) For the purposes of CSQ-JP6, a good is from Australia if the good is harvested in Australia.

(f) CSQ-JP6 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism.

(g) For the purposes of CSQ-JP6, maximum import mark-up to set the minimum selling price means the maximum amount that MAFF, or its successor, may add to the amount paid for goods when it sets the minimum selling price at or above which MAFF, or its successor, shall not reject a bid in an SBS tender unless the tender amount in the SBS tender is fully subscribed through higher bids.

7. CSQ-JP7: Wheat for Canada

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (d) from Canada that shall be duty-free, subject to an import mark-up applied by Japan as provided in subparagraphs (g) and (h), and the maximum import mark-up to set the minimum selling price for each year for those goods, in a particular year are specified below:

For Year 10 and for each subsequent year, the aggregate quota quantity shall remain at 53,000 metric tonnes. For Year 10 and for each subsequent year, the maximum import

mark-up to set the minimum selling price shall remain at 9.4 yen per kilogramme for the originating goods classified under Group 1 and 8.5 yen per kilogramme for the originating goods classified under Group 2.

(b) For the purposes of CSQ-JP7:

(i) Group 1 means Dark Northern Spring, Hard Red Winter, Western White, Canadian Western Red Spring and

Australia Standard White (Japan Blend) wheat classes; and

(ii) Group 2 means all wheat classes other than those set out in subparagraph (i).

(c) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (d) from Canada imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 100111.010, 100119.010, 100191.011, 100191.019, 100199.011, 100199.019 and 100860.210.

(e) For the purposes of CSQ-JP7, a good is from Canada if the good is harvested in Canada.

(f) CSQ-JP7 shall be established outside the tariff-rate quota in Japan's Schedule to the WTO Agreement and shall be administered by MAFF, or its successor, as a State Trading Enterprise using a SBS mechanism.

(g) For the purposes of CSQ-JP7, maximum import mark-up to set the minimum selling price means the maximum amount that MAFF, or its successor, may add to the amount paid for goods when it sets the minimum selling price at or above which MAFF, or its successor, shall not reject a bid in an SBS tender unless the tender amount in the SBS tender is fully subscribed through higher bids.

8. CSQ-JP8: Malt, Not Roasted for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from the United States that shall be duty-free in a particular year is specified below:

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 32,000 metric tonnes.

(b) The rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) For the purposes of CSQ-JP8, a good is from the United States if the good is produced in the United States from barley harvested in the United States.

(e) CSQ-JP8 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

9. CSQ-JP9: Malt, Not Roasted for Australia

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from Australia that shall be duty-free in a particular year is specified below:

(i) 72,000 metric tonnes for Year 1; and

(ii) 72,000 metric tonnes for Year 2 and for each subsequent year.

(b) The rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from Australia imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) For the purposes of CSQ-JP9, a good is from Australia if the good is produced in Australia from barley harvested in Australia.

(e) CSQ-JP9 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

(f) (i) From the date of entry into force of this Agreement for Japan and Australia until the following March 31, notwithstanding subparagraph (a)(i), the aggregate quota quantity of the originating goods from Australia under this Agreement shall be:

(A) where the quota quantity of the originating goods from Australia under this Agreement at the time of entry into force of this Agreement for Japan and Australia calculated in accordance with paragraph 2 of Article 2.30 (Allocation) exceeds the aggregate quota quantity of the originating goods from Australia under the Agreement between Japan and Australia for an Economic Partnership (JAEPA), as defined in subparagraph (o) of Article 1.2 of the JAEPA, which are classified under tariff line 1107.10 for the year concerned, the aggregate quota quantity of the originating goods from Australia under the JAEPA shall be counted toward the aggregate quota quantity of the originating goods from Australia under this Agreement; and

(B) where the quota quantity of the originating goods from Australia under this Agreement at the time of entry into force of this Agreement for Japan and Australia calculated in accordance with paragraph 2 of Article 2.30 (Allocation) does not exceed the aggregate quota quantity of the originating goods from Australia under the JAEPA, as defined in subparagraph (o) of Article 1.2 of the JAEPA, which are classified under tariff line 1107.10 for the year concerned, the aggregate quota quantity under this Agreement shall be zero, and the in-quota rate of customs duty set out in subparagraph (a) shall not apply.

(ii) From April 1 of Year 2 until March 31 of 2023, the aggregate quota quantity of the originating goods from Australia under the JAEPA shall be counted toward the aggregate quota quantity of the originating goods from Australia under this Agreement.

(iii) From April 1 of 2023, notwithstanding subparagraph (a)(ii), the aggregate quota quantity under this Agreement shall be zero, and the in-quota rate set out in subparagraph (a) shall not apply.

10. CSQ-JP10: Malt, Not Roasted for Canada

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from Canada that shall be duty-free in a particular year is specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 89,000 metric tonnes.

(b) The rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from Canada imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) For the purposes of CSQ-JP10, a good is from Canada if the good is produced in Canada from barley harvested in Canada.

(e) CSQ-JP10 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

11. CSQ-JP11: Malt, Roasted for the United States

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 1,050 metric tonnes.

(d) For the purposes of CSQ-JP11, a good is from the United States if the good is produced in the United States from barley harvested in the United States.

(e) CSQ-JP11 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

12. CSQ-JP12: Malt, Roasted for Australia

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from Australia that shall be duty-free in a particular year is specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 3,000 metric tonnes.

(d) For the purposes of CSQ-JP12, a good is from Australia if the good is produced in Australia from barley harvested in Australia.

(e) CSQ-JP12 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

13. CSQ-JP13: Malt, Roasted for Canada

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from Canada that shall be duty-free in a particular year is specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 4,000 metric tonnes.

(d) For the purposes of CSQ-JP13, a good is from Canada if the good is produced in Canada from barley harvested in Canada.

(e) CSQ-JP13 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

14. CSQ-JP14: Processed Cheese for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from the United States and the in-quota rate of customs duty in a particular year are specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 150 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at zero.

(d) (i) For the purposes of CSQ-JP14, a good is from the United States if the good is produced in the United States and any materials classified in HS Chapter 4 used in the production of the good are produced exclusively in the United States.

(ii) Notwithstanding subparagraph (i), a good that contains materials classified in HS Chapter 4 from a non-Party or a Party other than Japan and the United States shall be treated nonetheless as a good from the United States if the value of these materials does not exceed 10 per cent of the value of the good.

(e) CSQ-JP14 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

15. CSQ-JP15: Processed Cheese for Australia

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from Australia and the in quota rate of customs duty in a particular year are specified below:

(d) (i) For the purposes of CSQ-JP15, a good is from Australia if the good is produced in Australia and any materials classified in HS Chapter 4 used in the production of the good are produced exclusively in Australia.

(ii) Notwithstanding subparagraph (i), a good that contains materials classified in HS Chapter 4 from a non-Party or a Party other than Japan and Australia shall be treated nonetheless as a good from Australia if the value of these materials does not exceed 10 per cent of the value of the good.

(e) CSQ-JP15 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

16. CSQ-JP16: Processed Cheese for New Zealand

(a) The aggregate quota quantity of originating goods provided for in the tariff item set out in subparagraph (c) from New Zealand and the in-quota rate of customs duty in a particular year are specified below:

(b) The rate of customs duty on originating goods provided for in the tariff item set out in subparagraph (c) from New Zealand imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) (i) For the purposes of CSQ-JP16, a good is from New Zealand if the good is produced in New Zealand and any materials classified in HS Chapter 4 used in the production of the good are produced exclusively in New Zealand.

(ii) Notwithstanding subparagraph (i), a good that contains materials classified in HS Chapter 4 from a non-Party or a Party other than Japan and New Zealand shall be treated nonetheless as a good from New Zealand if the value of these materials does not exceed 10 per cent of the value of the good.

(e) CSQ-JP16 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

17. CSQ-JP17: Whey (Mineral Concentrate for the United States)

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the United States shall be reduced as follows, when:

(i) the aggregate volume of imports of the originating goods from the United States in any year does not exceed the aggregate quota quantity specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 4,000 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at zero; and

(ii) the ash content of the originating goods are more than or equal to 11 per cent.

(b) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category JPB16** and JPB16*** for the originating goods containing a milk protein content of less than 25 per cent, JPB21* and JPB21** for the originating goods containing a milk protein content equal to or greater than 25 per cent but less than 45 per cent, or JPB6**** and JPB6***** for the originating goods containing a milk protein content equal to or greater than 45 per cent as set out in paragraphs 4(dd), 4(ee), 4(gg), 4(hh), 4(h) and 4(i) respectively of the General Notes of the Tariff Schedule of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 040410.129 and 040410.169.

(d) For the purposes of CSQ-JP17, a good is from the United States if the good is produced in the United States and any materials classified in HS Chapter 4 used in the production of the good are produced exclusively in the United States.

(e) CSQ-JP17 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

18. CSQ-JP18: Whey (Mineral Concentrate for Australia)

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from Australia shall be eliminated as follows, when:

(i) the aggregate volume of imports of the originating goods from Australia in any year does not exceed the aggregate

quota quantity specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 5,000 metric tonnes. For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at zero; and

(ii) the ash content of the originating goods are more than or equal to 11 per cent.

(b) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from Australia imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category JPB16** and JPB16*** for the originating goods containing a milk protein content of less than 25 per cent, JPB21* and JPB21** for the originating goods containing a milk protein content equal to or greater than 25 per cent but less than 45 per cent, or JPB6**** and JPB6***** for the originating goods containing a milk protein content equal to or greater than 45 per cent as set out in paragraphs 4(dd), 4(ee), 4(gg), 4(hh), 4(h) and 4(i) respectively of the General Notes of the Tariff Schedule of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 040410.129 and 040410.169.

(d) For the purposes of CSQ-JP18, a good is from Australia if the good is produced in Australia and any materials classified in HS Chapter 4 used in the production of the good are exclusively produced in Australia.

(e) CSQ-JP18 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

19. CSQ-JP19: Whey (Prepared Whey for Infant Formula for the United States)

(a) The in-quota rate of customs duty for originating goods provided for in the tariff items set out in subparagraph (c) from the United States shall be duty-free, when:

(i) the aggregate volume of imports of the originating goods from the United States in any year does not exceed the aggregate quota quantity specified below:

For Year 2 and for each subsequent year, the aggregate quota quantity shall remain at 3,000 metric tonnes; and

(ii) the originating goods are whey and products consisting of natural milk constitutions, used for the manufacture of prepared milk powder for babies and infants.

(b) The rate of customs duty on originating goods provided for in the tariff items 040410.149 and 040410.189 from the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category JPB16** and JPB16*** for the originating goods containing a milk protein content of less than 25 per cent, JPB21* and JPB21** for the originating goods containing a milk protein content equal to or greater than 25 per cent but less than 45 per cent, JPB6**** and JPB6***** for the originating goods containing a milk protein content equal to or greater than 45 per cent or EIF for the originating goods for manufacturing mixed feeds containing added colouring matter, as set out in paragraphs 4(dd), 4(ee), 4(gg), 4(hh), 4(h), 4(i) and 4(a) respectively of the General Notes of the Tariff Schedule of Japan. The rate of customs duty on originating goods provided for in the tariff items 040490.118, 040490.128 and 040490.138 from the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category MFN as set out in paragraph 4 (kkk) of the General Notes of the Tariff Schedule of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 040410.149, 040410.189, 040490.118, 040490.128 and 040490.138.

(d) For the purposes of CSQ-JP19, a good is from the United States if the good is produced in the United States and any materials classified in HS Chapter 4 used in the production of the good are produced exclusively in the United States.

(e) CSQ-JP19 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

20. CSQ-JP20: Whey Permeate for the United States

(a) The in-quota rate of customs duty for originating goods provided for in the tariff items set out in subparagraph (c) from the United States shall be duty-free, when:

(i) the aggregate volume of imports of the originating goods from the United States in any year does not exceed the aggregate quota quantity specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 2,000 metric tonnes; and

(ii) the originating goods are whey permeate with protein content less than 5 per cent.

(b) The rate of customs duty on originating goods provided for in the tariff items set out in subparagraph (c) from the United States imported in excess of the aggregate quota quantity set out in subparagraph (a) shall be determined in accordance with staging category JPB16** and JPB16*** for the originating goods containing a milk protein content of less than 25 per cent, JPB21* and JPB21** for the originating goods containing a milk protein content equal to or greater than 25 per cent but less than 45 per cent, JPB6**** and JPB6***** for the originating goods containing a milk protein equal to or greater than 45 per cent or EIF for the originating goods for manufacturing mixed feeds containing added colouring matter, as set out in paragraphs 4(dd), 4(ee), 4(gg), 4(hh), 4(h), 4(i) and 4(a) respectively of the General Notes of the Tariff Schedule of Japan.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 040410.149 and 040410.139.

(d) For the purposes of CSQ-JP20, a good is from the United States if the good is produced in the United States and any materials classified in HS Chapter 4 used in the production of the good are produced exclusively in the United States.

(e) CSQ-JP20 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

21. CSQ-JP21: Whey for New Zealand

(a) The in-quota rate of customs duty on originating goods provided for in the tariff items 040410.139, 040410.149, 040410.189, 040490.118, 040490.128 and 040490.138 from New Zealand shall be duty-free. The in-quota rate of customs duty on originating goods classified under the tariff lines 040410.129 and 040410.169 from New Zealand shall be reduced as follows:

For Year 12 and for each subsequent year, the in-quota rate of customs duty shall remain at zero.

(b) The in-quota rate of customs duty set out in subparagraph (a) shall be applied when:

(i) the aggregate volume of imports of the originating goods from New Zealand in any year does not exceed the aggregate quota quantity specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 1,700 metric tonnes; and

(ii) the following condition is met:

(A) the ash content of the originating goods provided for in the tariff items 040410.129 and 040410.169 are more than or equal to 11 per cent;

(B) the originating goods provided for in the tariff items 040410.149, 040410.189, 040490.118, 040490.128 and 040490.138 are whey and products consisting of natural milk constitutions, used for the manufacture of prepared milk powder for babies and infants; or

(C) the originating goods provided for in the tariff items 040410.139 and 040410.149 are whey permeate with protein content less than five per cent.

(c) The rate of customs duty on originating goods provided for in the tariff items 040410.129, 040410.139, 040410.149, 040410.169 and 040410.189 from New Zealand imported in excess of the aggregate quota quantity set out in subparagraph (b) shall be determined in accordance with staging category JPB16** and JPB16*** for the originating goods containing a milk protein content of less than 25 per cent, JPB21* and JPB21** for the originating goods containing a milk protein content equal to or greater than 25 per cent but less than 45 per cent, JPB6**** and JPB6***** for the originating goods containing a milk protein content equal to or greater than 45 per cent or EIF for the originating goods for manufacturing mixed feeds containing added colouring matter, as set out in paragraphs 4(dd), 4(ee), 4(gg), 4(hh), 4(h), 4(i) and 4(a) respectively of the General Notes of the Tariff Schedule of Japan. The rate of customs duty on originating goods provided for in the tariff items 040490.118, 040490.128 and 040490.138 from New Zealand imported in excess of the aggregate quota quantity set out in subparagraph (b) shall be determined in accordance with staging category MFN as set out in paragraph 4(kkk) of the General Notes of the Tariff Schedule of Japan.

(d) Subparagraphs (a), (b) and (c) shall apply to the originating goods provided for in the tariff items 040410.129, 040410.139, 040410.149, 040410.169, 040410.189, 040490.118, 040490.128 and 040490.138.

(e) For the purposes of CSQ-JP21, a good is from New Zealand if the good is produced in New Zealand and any materials classified in HS Chapter 4 used in the production of the good are exclusively produced in New Zealand.

(f) CSQ-JP21 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

22. CSQ-JP22: Glucose and Fructose for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (d) from the United States in a particular year is specified below:

For Year 12 and for each subsequent year, the aggregate quota quantity shall remain at 1,350 metric tonnes.

(b) (i) The in-quota rate of customs duty on originating goods provided for in the tariff items set out in subparagraph

(d)(i) from the United States shall be duty-free.

(ii) The in-quota rate of customs duty other than the levy on originating goods provided for in the tariff items set out in subparagraph (d)(ii) from the United States shall be 21.5 yen per each kilogramme of the sugar portion of those originating goods, on which Japan may charge a levy. The rate of that levy shall be no greater than that of a levy applicable at the time of importation on originating goods provided for in the tariff item 170199.200. The sugar portion of those originating goods provided for in the tariff items set out in subparagraph (d)(ii) from the United States shall be determined by the weight of sucrose (dry matter basis), contained in those originating goods.

(d) (i) Subparagraphs (a), (b)(i) and (c) shall apply to the originating goods provided for in the tariff items 170230.221, 170230.229, 170240.220, 170260.220 and 170290.529.

(ii) Subparagraphs (a), (b)(ii) and (c) shall apply to the originating goods provided for in the tariff items 170230.210, 170240.210 and 170260.210.

(e) For the purposes of CSQ-JP22, a good is from the United States if the good is produced in the United States and any materials classified in HS Chapter 17 used in the production of the good are produced exclusively in the United States.

(f) CSQ-JP22 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

23. CSQ-JP23: Corn and Potato Starch for the United States

(a) The aggregate quota quantity of originating goods provided for in the tariff items set out in subparagraph (c) from the United States that shall be duty-free, subject to levy of up to 25 per cent if the originating goods are starch for manufacturing starch sugar, dextrin, dextrin glue, dissolve starch, roasted starch or starch glue, and free from levy if the originating goods are starch for the other purposes than manufacturing starch sugar, dextrin, dextrin glue, dissolve starch, roasted starch or starch glue, in a particular year is specified below.

For Year 7 and for each subsequent year, the aggregate quota quantity shall remain at 3,250 metric tonnes.

(c) Subparagraphs (a) and (b) shall apply to the originating goods provided for in the tariff items 110812.090 and 110813.090.

(d) For the purposes of CSQ-JP23, a good is from the United States if the good is produced in the United States from corn or potatoes harvested in the United States.

(e) CSQ-JP23 shall be administered by Japan through a first-come, first-served import licensing procedure pursuant to which a certificate of tariff rate quota shall be issued by Japan.

APPENDIX B-1

AGRICULTURAL SAFEGUARD MEASURES

Section A: Notes for Appendix B-1

1. This Appendix sets out:

(a) the originating agricultural goods that may be subject to agricultural safeguard measures under paragraph 5 of the General Notes of the Tariff Schedule of Japan;

(b) the trigger levels for applying such measures; and

2. Notwithstanding Article 2.4 (Elimination of Customs Duties), Japan may apply a safeguard measure on specific originating agricultural goods provided for in the tariff items indicated with "SG1*", "SG1**", "SG2", "SG3", "SG4*", "SG4**", "SG5" or "SG6" in Column "Remarks" in Tariff Schedule of Japan. Japan may apply such a safeguard measure only under the conditions set out in this Appendix and only in accordance with the terms set out in this Appendix, including this Notes.

3. If the conditions specified in this Appendix have been satisfied, Japan may, as an agricultural safeguard measure, increase the rate of customs duty on such an originating agricultural good to a level not to exceed the lesser of:

(a) the most-favoured-nation applied rate of customs duty in effect at the time the agricultural safeguard measure is applied;

(b) the most-favoured-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement:

(i) for Japan, when the agricultural safeguard measure applies to originating agricultural goods from all the other Parties; and

(ii) with respect to Japan and the Party for which the agricultural safeguard measure applies, when an agricultural safeguard measure applies only to originating agricultural goods from that one Party; and

4. Japan shall implement any agricultural safeguard measure in a transparent manner. Japan shall, within 60 days of the date of imposing the agricultural safeguard measure, notify in writing any other Party whose originating agricultural goods are subject to the measure and provide each such other Party with relevant data concerning the measure. Japan shall, on the written request of any such other Party, respond to specific questions from, and provide information to, that other Party, including by e-mail, teleconference, video-conference and in-person, regarding application of the measure.

5. For the purposes of this Appendix, an originating agricultural good is from the Party if the originating agricultural good is wholly obtained in that Party or if the last change of tariff heading took place in that Party.

6. For greater certainty, no agricultural safeguard measure may be applied or maintained on or after the date on which the rate of customs duty referred to in paragraph 3(c) of this Section is zero.

7. For the purposes of this Appendix:

(a) year means:

(i) with respect to Year 1, the period from the date of entry into force of this Agreement for Japan through the following

March 31; and

(ii) with respect to Year 2 and each subsequent year, the 12-month period from April 1 until the following March 31;

(b) fiscal year means the period from April 1 through the following March 31; and

(i) from April 1 through June 30;

(ii) from July 1 through September 30;

(iii) from October 1 through December 31; or

(iv) from January 1 through March 31.

Section B: Agricultural Safeguard Measure for Beef

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" in Tariff Schedule of Japan, Japan may apply an agricultural safeguard measure on those originating agricultural goods only when the aggregate volume of imports of those originating agricultural goods from all the other Parties for the year exceeds the trigger level set out as follows:

(a) 590,000 metric tonnes for Year 1, except as provided in paragraph 9;

(b) 601,800 metric tonnes for Year 2;

(d) 625,400 metric tonnes for Year 4;

(e) 637,200 metric tonnes for Year 5;

(f) 649,000 metric tonnes for Year 6;

(g) 660,800 metric tonnes for Year 7;

(h) 672,600 metric tonnes for Year 8;

(i) 684,400 metric tonnes for Year 9;

(j) 696,200 metric tonnes for Year 10;

(k) beginning in Year 11 and running through Year 15, the trigger level for each year shall be 5,900 metric tonnes greater than the trigger level in the previous year; and

(l) beginning in Year 16 and continuing every year thereafter, the trigger level for each year shall be 11,800 metric tonnes greater than the trigger level in the previous year.

2. (a) For the originating agricultural goods provided for in the tariff items indicated with "SG1*", the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(i) 38.5 per cent, for Year 1 through Year 3;

(ii) 30.0 per cent, for Year 4 through Year 10;

ANNEX 2-D – APPENDIX B-1 – JAPAN – 3

(iii) 20.0 per cent, for Year 11 through Year 14;

(iv) 18.0 per cent, for Year 15; and

(v) beginning in Year 16 and continuing every year thereafter:

(A) one percentage point less than the rate of customs duty in the previous year, if Japan did not apply a safeguard measure under this Section in the previous year; or

(B) the same as the rate of customs duty in the previous year, if Japan applied a safeguard measure under this Section in the previous year.

(b) For the originating agricultural goods provided for in the tariff items indicated with "SG1**", the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(i) 39.0 per cent, for Year 1;

(ii) 38.5 per cent, for Year 2 and Year 3;

(iii) 32.7 per cent, for Year 4;

(iv) 30.6 per cent, for Year 5;

(v) 30.0 per cent, for Year 6 through Year 10;

(vi) 20.0 per cent, for Year 11 through Year 14;

(vii) 18.0 per cent, for Year 15; and

(viii) beginning in Year 16 and continuing every year thereafter:

(A) one percentage point less than the rate of customs duty in the previous year, if Japan did not apply a safeguard measure under this Section in the previous year; or

(B) the same as the rate of customs duty in the previous year, if Japan applied a safeguard measure under this Section in the previous year.

(c) If the condition set out in paragraph 1 is met in one year and as a result a safeguard measure is in effect during the following year pursuant to paragraph 3(b) or 3(c) of this Section, the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix for the purpose of that safeguard measure shall, for the duration of that safeguard measure, be at the level applicable for the year in which the condition set out in paragraph 1 is met.

3. An agricultural safeguard measure referred to in paragraph 1 may be maintained:

(a) if the aggregate volume of imports from all the other Parties of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in any fiscal year exceeds the trigger level set out in paragraph 1 prior to 31 January, until the end of that fiscal year;

(b) if the aggregate volume of imports from all the other Parties of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in any fiscal year exceeds the trigger level set out in paragraph 1 during the month of February, for 45 days beginning from the day of the application of the agricultural safeguard measure; and

(c) if the aggregate volume of imports from all the other Parties of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in any fiscal year exceeds the trigger level set out in paragraph 1 during the month of March, for 30 days beginning from the day of the application of the agricultural safeguard measure.

4. (a) For the purposes of this Section, the period during which an agricultural safeguard measure may be maintained shall commence no later than the day following the fifth business day after the end of the publication period in which the aggregate quantity of imports of the agricultural originating goods exceeded the trigger level set out in paragraph 1.

(b) For the purposes of this Section, as an exceptional measure taken for the implementation of this Section, within five business days after the end of each publication period, the customs administration of Japan shall publish the aggregate volume of imports of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan from all the other Parties between:

(i) the beginning of the fiscal year and the end of the publication period; and

(ii) for Year 11 through Year 15, the beginning of the quarter and the end of the publication period.

(i) the period from the first day of each month until the 10th day of that month;

(ii) the period from the 11th day of each month until the 20th day of that month; and

(iii) the period from the 21st day of each month until the final day of that month.

5. (a) Notwithstanding paragraph 1, if, during any year from Year 11 through Year 15, the aggregate volume of imports of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan from all the other Parties in any quarter exceeds the quarterly safeguard trigger volume set out in subparagraph (b), Japan may increase the rates of customs duties for such goods in accordance with paragraph 3 of Section A to this Appendix for a period of 90 days. The 90-day period shall commence no later than the day following the fifth business day after the end of the publication period in which the aggregate quantity of imports of such goods in the quarter exceeded the quarterly safeguard trigger volume. The rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix if the condition set out in this paragraph is met shall be:

(i) 20.0 per cent, if the condition is met during Year 11 through Year 14; and

(ii) 18.0 per cent, if the condition is met in Year 15.

(b) For the purposes of this paragraph, the quarterly safeguard trigger volume means 117 per cent of one fourth of the trigger level set out in paragraph 1(k) for the respective year.

(c) Notwithstanding paragraph 1, if during any year from Year 11 through Year 15, the aggregate volume of imports of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan from all the other Parties exceeds the trigger level set out in paragraph 1(k) for the respective year, and at the same time the aggregate volume of imports of the originating agricultural goods provided for in those tariff items from all the other Parties in the quarter exceeds the quarterly safeguard trigger volume set out in subparagraph (b), Japan may maintain an agricultural safeguard measure under this Section until the later of the end of the 90-day period provided for in subparagraph (a) or the date provided for in paragraph 3.

6. If, during any four consecutive fiscal years after Year 15, Japan does not apply an agricultural safeguard measure under this Section, Japan shall not apply any further agricultural safeguard measures under this Section.

7. When the importation into Japan from any Party of the originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan has been wholly or substantially suspended for more than three years due to sanitary concerns, Japan shall not apply an agricultural safeguard measure under this Section to such goods from that Party for four years after the whole or substantial lifting of the suspension. If a natural disaster such as severe drought disrupts the recovery of production in the Party whose imports had been suspended, the period in which Japan shall not apply an agricultural safeguard measure under this Section to such goods from that Party shall be five years.

8. Japan shall not apply the tariff emergency measures on beef referred to in Article 7.5 of the Temporary Tariff Measures Law of Japan (Law No.36 of 1960) to the originating agricultural goods provided for in the tariff items indicated with "SG1*" in Column "Remarks" of the Tariff Schedule of Japan.

9. If Year 1 is less than 12 months, the applicable trigger level for Year 1 for the purposes of paragraph 1(a) shall be determined by multiplying 590,000 metric tonnes by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for Japan and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

10. (a) The aggregate volume of imports into Japan of the originating goods, as defined in subparagraph (o) of Article 1.2 of the Agreement between Japan and Australia for an Economic Partnership (JAEPA) (hereinafter referred to as "JAEPA originating goods"), which are classified under headings 02.01 and 02.02 under the JAEPA, shall be counted towards the aggregate volume of imports of the originating agricultural goods under this Agreement which are classified under the same tariff lines under this Agreement, in determining whether the aggregate volume of imports of the originating agricultural goods under this Agreement exceeds the corresponding levels or volumes set out in paragraphs 1 and 5(b) of this Section.

(b) For greater certainty, when the aggregate volume of imports from Australia of JAEPA originating goods classified under headings 02.01 and 02.02 under the JAEPA has exceeded the levels set out in subparagraphs 3.(a)(i) and (ii) of Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA, but the aggregate volume of imports of originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan under this Agreement has not exceeded the levels or volumes set out in paragraph 1 and 5(b) of this Section, further imports of the originating agricultural goods from Australia under this Agreement shall be subject to the rate of customs duty which is determined in accordance with the Tariff Schedule of Japan.

(c) For greater certainty, when the aggregate volume of imports of originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan under this Agreement has exceeded the levels or volumes set out in paragraph 1 and 5(b) of this Section and the aggregate volume of imports of JAEPA originating goods classified under headings 02.01 and 02.02 under the JAEPA has exceeded the levels set out in subparagraphs 3.(a)(i) and (ii) of Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA, then imports of the originating agricultural goods from Australia under this Agreement shall be subject to the rate of customs duty which is determined in accordance with this Section.

11. (a) In implementing the commitment on originating agricultural goods classified under headings 02.01 and 02.02, provided for in the Tariff Schedule of Japan, Japan and Australia agree that, notwithstanding subparagraphs 3.(a)(i) and (ii) of Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA, the aggregate volume of imports of the originating agricultural goods classified under headings 02.01 and 02.02 from Australia under this Agreement shall be counted towards the aggregate volume of imports of the JAEPA originating goods, which are classified under the same tariff lines under the JAEPA, in determining whether the aggregate volume of those JAEPA originating goods exceeds the level set out in subparagraphs 3.(a)(i) and (ii) of Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA.

(b) For the purposes of ensuring the appropriate functioning of special safeguard measures under subparagraphs 3.(a)(i) and (ii) of Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA to avoid a sudden increase in total import of the originating goods as defined in subparagraph (o) of Article 1.2 of the JAEPA which are classified under headings 02.01 and 02.02 under the JAEPA, on request of a Party which imports such originating goods, the requested Party and the requesting Party shall hold a consultation on the application of subparagraph (a).

(c) For greater certainty, when the aggregate volume of imports of originating agricultural goods provided for in the tariff items indicated with "SG1*" or "SG1**" in Column "Remarks" of the Tariff Schedule of Japan under this Agreement has exceeded the levels or volumes set out in paragraphs 1 and 5(b) of this Section, but the aggregate volume of imports from Australia of JAEPA originating goods classified under headings 02.01 and 02.02 under the JAEPA has not exceeded the levels set out in subparagraphs 3.(a)(i) and (ii) of Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA, further imports of the JAEPA originating goods from Australia under the JAEPA shall be subject to the rate of customs duty which is determined in accordance with Section 1 (Notes for Schedule of Japan) of Part 3 of Annex 1 of the JAEPA.

Section C: Agricultural Safeguard Measure for Pork

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG2" in Column "Remarks" in the Tariff Schedule of Japan (SG2 goods), Japan may apply an agricultural safeguard measure only when the following conditions are met, except as provided in paragraphs 6 and 7 of this Section:

(a) in Year 1 and Year 2, except as provided in paragraph 6 of this Section, Japan may apply an agricultural safeguard measure under this Section on SG2 goods from an individual Party if the aggregate volume of imports of SG2 goods from that individual Party for the respective year exceeds 112 per cent of the largest annual aggregate volume of imports of SG2 goods from that individual Party during any of the preceding three fiscal years;

(b) in Year 3 and Year 4, Japan may apply an agricultural safeguard measure under this Section on SG2 goods from an individual Party if the aggregate volume of imports of SG2 goods from that individual Party for the respective year exceeds 116 per cent of the largest annual aggregate volume of imports of SG2 goods from that individual Party during any of the preceding three fiscal years;

(i) Japan may apply an agricultural safeguard measure under this Section on SG2 goods from an individual Party imported at a price equal to or greater than the threshold price for those SG2 goods, if the aggregate volume of imports of those SG2 goods from that individual Party for the respective year exceeds 116 per cent of the largest annual aggregate volume of imports of those SG2 goods from that individual Party during any of the preceding three fiscal years; or

(ii) Japan may apply an agricultural safeguard measure under this Section on SG2 goods from all the other Parties imported at a price less than the threshold price for those SG2 goods, if the aggregate volume of imports of those SG2 goods from all the other Parties for the respective year exceeds:

(A) in Year 5: 90,000 metric tonnes; and

(B) in Year 6: 102,000 metric tonnes;

(d) in Year 7 through Year 11:

(i) Japan may apply an agricultural safeguard measure under this Section on SG2 goods from an individual Party imported at price equal to or greater than the threshold price for those SG2 goods, if the aggregate volume of imports of those SG2 goods from that Party for the respective year exceeds 119 per cent of the largest annual aggregate volume of imports of those SG2 goods from that Party during any of the preceding three fiscal years; or

(ii) Japan may apply an agricultural safeguard measure under this Section on SG2 goods from all the other Parties imported at price less than the threshold price for those SG2 goods, if the aggregate volume of imports of those SG2 goods from all the other Parties for the respective year exceeds:

(A) in Year 7: 114,000 metric tonnes;

(B) in Year 8: 126,000 metric tonnes;

(D) in Year 10: 150,000 metric tonnes; and

(E) in Year 11: 150,000 metric tonnes,

where for the purposes of subparagraphs (c) and (d), threshold price means:

(iii) for the originating agricultural goods provided for in the tariff items 020312.021, 020312.023, 020319.021, 020319.023, 020322.021, 020322.023, 020329.021, 020329.023, 020630.092, 020630.093, 020649.092 or 020649.093: 399 yen per kilogramme; and

(iv) for the originating agricultural goods provided for in the tariff items 020311.020, 020311.030, 020321.020 or 020321.030: 299.25 yen per kilogramme.

2. For SG2 goods, the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(a) for SG2 goods provided for in the tariff items 020311.040, 020312.022, 020319.022, 020321.040, 020322.022, 020329.022 020630.099 or 020649.099:

(i) in Year 1 through Year 3: 4.0 per cent;

(ii) in Year 4 through Year 6: 3.4 per cent;

(iii) in Year 7 through Year 9: 2.8 per cent; and

(iv) in Year 10 and Year 11: 2.2 per cent,

(b) for SG2 goods provided for in the tariff items 020312.021, 020312.023, 020319.021, 020319.023, 020322.021, 020322.023, 020329.021, 020329.023, 020630.092, 020630.093, 020649.092 or 020649.093, the lesser of:

(i) the difference between CIF import price per kilogramme and the First Safeguard Standard Import Price; and

(ii) the first alternative rate, where for the purposes of this subparagraph:

(iii) First Safeguard Standard Import Price means a price equal to 524 yen per kilogramme multiplied by the sum of 100 per cent and the rate of customs duty set out in paragraph 2(a) for the respective year; and

(iv) first alternative rate means:

(A) in Year 1 through Year 4: the rate of customs duty specified in the Tariff Schedule of Japan for the tariff lines 020312.023, 020319.023, 020322.023, 020329.023, 020630.093 or 020649.093;

(B) in Year 5 through Year 9: 100 yen per kilogramme; and

(i) the difference between CIF import price per kilogramme and the Second Safeguard Standard Import Price; and

(ii) the second alternative rate, where for the purposes of this subparagraph:

(iii) Second Safeguard Standard Import Price means a price equal to 393 yen per kilogramme multiplied by the sum of 100 per cent and the rate of customs duty set out in paragraph 2(a) for the respective year; and

(iv) second alternative rate means:

(A) in Year 1 through Year 4: the rate of customs duty specified in the Tariff Schedule of Japan for the tariff lines 020311.020 or 020321.020;

(B) in Year 5 through Year 9: 75 yen per kilogramme; and

3. Any agricultural safeguard measure applied under this Section may be maintained only until the end of the fiscal year in which the trigger level was exceeded.

4. Japan shall not apply or maintain any agricultural safeguard measure under this Section after the end of Year 11.

5. Japan shall not apply the tariff emergency measures on pork referred to in paragraph 1 of Article 7.6 of the Temporary Tariff Measures Law of Japan (Law No. 36 of 1960) to SG2 goods.

6. If Year 1 is less than 12 months, the applicable trigger level for SG2 goods from an individual Party for Year 1 for the purposes of paragraph 1(a) shall be determined by multiplying 112 per cent of the largest annual aggregate volume of imports of SG2 goods from that Party during any of the preceding three fiscal years by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for Japan and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

7. If this Agreement enters into force for a Party other than Japan in accordance with Article 30.5.4 and Article 30.5.5 (Entry into Force), and:

(a) the date of entry into force of this Agreement for that Party is not April 1; and

(b) the period between the date of entry into force of this Agreement for that Party and the following March 31 is not Year 1, the applicable trigger level for SG2 goods from that Party for the year for the purposes of paragraph 1 shall be determined by multiplying the trigger level that would be applicable pursuant to paragraph 1 if it were a complete year by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for that Party and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

Section D: Agricultural Safeguard Measure for Processed Pork

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG3" in Column "Remarks" in the Tariff Schedule of Japan (SG3 goods), Japan may apply an agricultural safeguard measure only when the following conditions are met, except as provided in paragraphs 6 and 7 of this Section:

(a) in Year 1 and Year 2, except as provided in paragraph 6 of this Section, Japan may apply an agricultural safeguard measure under this Section on SG3 goods from an individual Party only if the aggregate volume of imports of SG3 goods from that individual Party for the respective year exceeds 115 per cent of the largest annual aggregate volume of imports of SG3 goods from that Party during any of the preceding three fiscal years;

(b) in Year 3 through Year 6, Japan may apply an agricultural safeguard measure under this Section on SG3 goods from an individual Party only if the aggregate volume of imports of SG3 goods from that other Party for the respective year exceeds 118 per cent of the largest annual aggregate volume of imports of SG3 goods from that individual Party during any of the preceding three fiscal years; and

(c) in Year 7 through Year 11, Japan may apply an agricultural safeguard measure under this Section on SG3 goods from an individual Party only if the aggregate volume of imports of SG3 goods from that other Party for the respective year exceeds 121 per cent of the largest annual aggregate volume of imports of SG3 goods from that individual Party during any of the preceding three fiscal years.

2. (a) For SG3 goods, the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(i) for Year 1 through Year 4: 85 per cent of the base rate;

(ii) for Year 5 through Year 9: 60 per cent of the base rate; and (iii) for Year 10 and Year 11: 45 per cent of the base rate.

(b) For the purposes of this paragraph, the base rate shall be comprised of an ad valorem duty component and a specific duty component, each of which shall be reduced to the percentages identified in subparagraph (a) to determine the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix. The ad valorem duty component of the base rate shall be 8.5 per cent, and the specific duty component shall be equal to 614.85 yen per kilogramme minus 60 per cent of the CIF import price per kilogramme of the respective SG3 good.

3. Any agricultural safeguard measure applied under this Section may be maintained only until the end of the fiscal year in which the trigger level was exceeded.

4. Japan shall not apply any agricultural safeguard measure under this Section after the end of Year 11.

5. Japan shall not apply the tariff emergency measures on pork referred to in paragraph 1 of Article 7-6 of the Temporary Tariff Measures Law of Japan (Law No. 36 of 1960) to SG3 goods.

6. If Year 1 is less than 12 months, the applicable trigger level for SG3 goods from an individual Party for Year 1 for the purposes of paragraph 1(a) shall be determined by multiplying 115 per cent of the largest annual aggregate volume of imports of SG3 goods from that Party during any of the preceding three fiscal years by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for Japan and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

7. If this Agreement enters into force for a Party other than Japan in accordance with Article 30.5.4 and Article 30.5.5 (Entry into Force), and:

(a) the date of entry into force of this Agreement for that Party is not April 1; and

(b) the period between the date of entry into force of this Agreement for that Party and the following March 31 is not Year 1, the applicable trigger level for SG3 goods from that Party for the year for the purposes of paragraph 1 shall be determined by multiplying the trigger level that would be applicable pursuant to paragraph 1 if it were a complete year by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for that Party and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

Section E: Agricultural Safeguard Measure for WPC

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG4*" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply an agricultural safeguard measure on those originating agricultural goods only when the aggregate volume of imports of those originating agricultural goods from all the other Parties for the year exceeds the trigger level set out as follows:

(a) 4,500 metric tonnes for Year 1, except as provided in paragraph 6;

(b) 4,778 metric tonnes for Year 2;

(d) 5,333 metric tonnes for Year 4;

(e) 5,611 metric tonnes for Year 5;

(f) 5,889 metric tonnes for Year 6;

(g) 6,167 metric tonnes for Year 7;

(h) 6,444 metric tonnes for Year 8;

(i) 6,722 metric tonnes for Year 9;

(j) 7,000 metric tonnes for Year 10;

(k) 7,750 metric tonnes for Year 11;

(l) 8,500 metric tonnes for Year 12;

(m) 9,250 metric tonnes for Year 13;

(n) 10,250 metric tonnes for Year 14;

(o) 11,250 metric tonnes for Year 15;

(p) 12,250 metric tonnes for Year 16;

(q) 13,250 metric tonnes for Year 17;

(r) 14,250 metric tonnes for Year 18;

(s) 15,250 metric tonnes for Year 19;

(t) 16,250 metric tonnes for Year 20; and

(u) beginning in Year 21 and continuing every year thereafter, the trigger level for each year shall be 1,250 metric tonnes greater than the trigger level in the previous year.

2. For the originating agricultural goods provided for in the tariff items indicated with "SG4*", the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(a) 29.8 per cent plus 120 yen per kilogramme, for Year 1 through Year 5;

(b) 23.8 per cent plus 105 yen per kilogramme, for Year 6 through Year 10;

(d) 13.4 per cent plus 75 yen per kilogramme, for Year 16 through Year 20; and

(e) beginning in Year 21 and continuing every year thereafter:

(i) the ad valorem duty component of the rate of customs duty shall be 1.9 per cent lower than it was in the previous year and the specific duty component of the rate of customs duty shall be 10.7 yen per kilogramme lower than it was in the previous year, unless an agricultural safeguard measure set out in this Section was applied in the previous year; or

(ii) the ad valorem duty component of the rate of customs duty shall be 1.0 per cent lower than it was in the previous year and the specific duty component of the rate of customs duty shall be 5.0 yen per kilogramme lower than it was in the previous year if an agricultural safeguard measure set out in this Section was applied in the previous year.

3. Any agricultural safeguard measure applied under this Section may be maintained only until the end of the fiscal year in which the trigger level was exceeded.

4. If, during any three consecutive fiscal years after Year 20, Japan does not apply an agricultural safeguard measure under this Section, Japan shall not apply any further agricultural safeguard measures under this Section.

5. (a) Notwithstanding paragraph 1, Japan shall not apply any agricultural safeguard measure under this Section if:

(i) there is a domestic shortage of skimmed milk powder in Japan; or

(ii) there is no demonstrable reduction in domestic demand for skimmed milk powder in Japan.

(b) If Japan applies an agricultural safeguard measure under this Section when an individual Party whose originating agricultural goods are subject to the measure believes that either of the conditions set out in subparagraph (a) has been satisfied, that Party may:

(i) ask Japan to provide an explanation of why Japan does not consider either of the conditions set out in subparagraph (a) to have been satisfied; and

(ii) request that Japan cease application of the agricultural safeguard measure for the remainder of the fiscal year.

6. If Year 1 is less than 12 months, the applicable trigger level for Year 1 for the purposes of paragraph 1(a) shall be determined by multiplying 4,500 metric tonnes by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for Japan and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

Section F: Agricultural Safeguard Measure for Whey Powder

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG4**" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply an agricultural safeguard measure on those originating agricultural goods only when the aggregate volume of imports of those originating agricultural goods from all the other Parties for the year exceeds the trigger level set out as follows:

(a) 5,000 metric tonnes for Year 1, except as provided in paragraph 5;

(b) 5,333 metric tonnes for Year 2;

(d) 6,000 metric tonnes for Year 4;

(e) 6,333 metric tonnes for Year 5;

(f) 6,667 metric tonnes for Year 6;

(g) 7,000 metric tonnes for Year 7;

(h) 7,333 metric tonnes for Year 8;

(i) 7,667 metric tonnes for Year 9;

(j) 8,000 metric tonnes for Year 10;

(k) 8,500 metric tonnes for Year 11;

(l) 9,000 metric tonnes for Year 12;

(m) 9,750 metric tonnes for Year 13;

(n) 10,500 metric tonnes for Year 14;

(o) 11,250 metric tonnes for Year 15; and

(p) beginning in Year 16 and continuing every year thereafter, the trigger level for each year shall be 1,000 metric tonnes greater than the trigger level in the previous year.

2. For the originating agricultural goods provided for in the tariff items indicated with "SG4**", the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(a) for Year 1 through Year 5, 29.8 per cent plus 75 yen per kilogramme;

(b) for Year 6 through Year 10, 23.8 per cent plus 45 yen per kilogramme;

(d) beginning in Year 16 and continuing every year thereafter:

(i) 2.0 per cent and 4.0 yen per kilogramme lower than it was in the previous year, unless an agricultural safeguard measure set out in this Section was applied in the previous year; or

(ii) 1.0 per cent and 2.0 yen per kilogramme lower than it was in the previous year if an agricultural safeguard measure set out in this Section was applied in the previous year.

3. Any agricultural safeguard measure applied under this Section may be maintained only until the end of the fiscal year in which the trigger level was exceeded.

4. If, during any two consecutive years after Year 15, Japan does not apply an agricultural safeguard measure under this Section, Japan shall not apply any further agricultural safeguard measures under this Section.

5. If Year 1 is less than 12 months, the applicable trigger level for Year 1 for the purposes of paragraph 1(a) shall be determined by multiplying 5,000 metric tonnes by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for Japan and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

Section G: Agricultural Safeguard Measure for Fresh Oranges

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG5" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply an agricultural safeguard measure on those originating agricultural goods only when the aggregate volume of imports of those originating agricultural goods from all the other Parties between December 1 and March 31 for the fiscal year exceeds the level set out as follows:

(a) 35,000 metric tonnes for Year 1, except as provided in paragraph 5;

(b) 37,000 metric tonnes for Year 2;

(d) 41,000 metric tonnes for Year 4;

(e) 43,000 metric tonnes for Year 5;

(f) 45,000 metric tonnes for Year 6; and

(g) 47,000 metric tonnes for Year 7.

2. For the originating agricultural goods provided for in the tariff items indicated with "SG5", the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be:

(a) for Year 1 through Year 4: 28 per cent; and

(b) for Year 5 through Year 7: 20 per cent.

3. Any agricultural safeguard measure applied under this Section may be maintained only until the end of the fiscal year in which the trigger level was exceeded.

4. Japan shall not apply any safeguard measure under this Section after the end of Year 7.

5. If Year 1 is less than 4 months, the applicable trigger level for Year 1 for the purposes of paragraph 1(a) shall be determined by multiplying 35,000 metric tonnes by a fraction the numerator of which shall be the number of months between the date of entry into force of the Agreement for Japan and the following March 31 and the denominator of which shall be four. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

Section H: Agricultural Safeguard Measure for Race Horses

1. In accordance with paragraph 2 of Section A to this Appendix, with respect to the originating agricultural goods provided for in the tariff items indicated with "SG6" in Column "Remarks" of the Tariff Schedule of Japan, Japan may apply an agricultural safeguard measure on those originating agricultural goods only if the CIF import price per each of those originating agricultural goods, expressed in Japanese Yen, is less than 90 per cent of the trigger price. The trigger price shall be the price that has been agreed in accordance with paragraph 4, or 8.5 million yen if there has been no specific agreement on the trigger price in accordance with paragraph 4.

2. For the originating agricultural goods provided for in the tariff items indicated with "SG6", the rate of customs duty referred to in paragraph 3(c) of Section A to this Appendix shall be the rate of customs duty determined for those originating agricultural goods in accordance with staging category B16 identified in the Tariff Schedule of Japan plus:

(a) if the difference between the CIF import price per each of the originating agricultural good and the trigger price is greater than 10 per cent but less than or equal to 40 per cent of the trigger price: 30 per cent of the difference between the most-favoured-nation applied rate of customs duty in effect at the time of importation and the rate of customs duty applied to the originating agricultural goods in accordance with the staging category B16 identified in the Tariff Schedule of Japan;

(b) if the difference between the CIF import price per each of the originating agricultural good and the trigger price is greater than 40 per cent but less than or equal to 60 per cent of the trigger price: 50 per cent of the difference between the most-favoured-nation applied rate of customs duty in effect at the time of importation and the rate of customs duty applied to the originating agricultural goods in accordance with the staging category B16 identified in the Tariff Schedule of Japan;

(c) if the difference between the CIF import price per each of the originating agricultural good and the trigger price is greater than 60 per cent but less than or equal to 75 per cent of the trigger price: 70 per cent of the difference between the most-favoured-nation applied rate of customs duty in effect at the time of importation and the rate of customs duty applied to the originating agricultural goods in accordance with the staging category B16 identified in the Tariff Schedule of Japan; and

(d) if the difference between the CIF import price per each of the originating agricultural good and the trigger price is greater than 75 per cent of the trigger price: the difference between the most-favoured-nation applied rate of customs duty in effect at the time of importation and the rate of customs duty applied to the originating agricultural goods in accordance with the staging category B16 identified in the Tariff Schedule of Japan.

3. Japan shall not apply any safeguard measure under this Section after the end of Year 15.

4. On request of a Party, and following notification of such request to all the other Parties, Japan and those Parties interested in consulting shall consult on the operation of the safeguard measure set out in this Section and may mutually agree to periodically evaluate and update the trigger price.

APPENDIX B-2

FOREST GOOD SAFEGUARD MEASURE

1. Notwithstanding Article 2.4 (Elimination of Customs Duties), pursuant to paragraph 5 of the General Notes of the Tariff Schedule of Japan, Japan may apply a safeguard measure on specific forest goods qualified as "originating forest goods" provided for in the tariff items indicated with "SG11", "SG12", "SG13", "SG14", "SG15", "SG16" or "SG17" in Column "Remarks" in the Tariff Schedule of Japan, only when the conditions set out in this Appendix are met.

2. If the conditions in any one of paragraphs 6 through 12 have been satisfied, Japan may, as a forest good safeguard measure, increase the rate of customs duty on an originating forest good from another Party to a level not to exceed the lesser of:

(a) the most-favoured-nation applied rate of customs duty in effect at the time the forest good safeguard measure is applied; and

(b) the most-favoured-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement with respect to Japan and the Party for which the forest good safeguard measure applies.

3. For the purposes of this Appendix, an originating forest good is from the Party if the originating forest good is wholly obtained in that Party or if the last change of tariff heading took place in that Party.

4. Any forest good safeguard measure applied under this Appendix may be maintained only until the end of the year in which it is applied.

5. For the purposes of this Appendix, year means, with respect to Year 1, the period from the date of entry into force of this Agreement for Japan through the following March 31, and with respect to Year 2 and each subsequent Year, the 12-month period from April 1 of the respective year until the following March 31.

6. With respect to the originating forest goods provided for in the tariff items indicated with "SG11" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from Canada, only when the aggregate volume of imports of those originating forest goods from Canada in any year exceeds the trigger level set out as follows:

(a) 1,573,000 cubic metres for Year 1, except as provided in paragraph 16;

(b) 1,604,500 cubic metres for Year 2;

(d) 1,667,500 cubic metres for Year 4;

(e) 1,699,000 cubic metres for Year 5;

(f) 1,730,500 cubic metres for Year 6;

(g) 1,762,000 cubic metres for Year 7;

(h) 1,793,500 cubic metres for Year 8;

(i) 1,825,000 cubic metres for Year 9;

(j) 1,856,500 cubic metres for Year 10;

(k) 1,888,000 cubic metres for Year 11;

(l) 1,919,500 cubic metres for Year 12;

(m) 1,951,000 cubic metres for Year 13;

(n) 1,982,500 cubic metres for Year 14;

(o) 2,014,000 cubic metres for Year 15; and

(p) for each year beginning in Year 16 and continuing thereafter, the trigger level shall be 31,500 cubic metres greater than the trigger level in the previous year.

7. With respect to the originating forest goods provided for in the tariff items indicated with "SG12" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from New Zealand, only when the aggregate volume of imports of those originating forest goods from New Zealand in any year exceeds the trigger level set out as follows:

(a) 65,000 cubic metres for Year 1, except as provided in paragraph 16;

(b) 66,100 cubic metres for Year 2;

(d) 68,300 cubic metres for Year 4;

(e) 69,400 cubic metres for Year 5;

(f) 70,500 cubic metres for Year 6;

(g) 71,600 cubic metres for Year 7;

(h) 72,700 cubic metres for Year 8;

(i) 73,800 cubic metres for Year 9; and

(j) 74,900 cubic metres for Year 10.

8. With respect to the originating forest goods provided for in the tariff items indicated with "SG13" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from Canada, only when the aggregate volume of imports of those originating

forest goods from Canada in any year exceeds the trigger level set out as follows:

(a) 224,000 cubic metres for Year 1, except as provided in paragraph 16;

(b) 228,500 cubic metres for Year 2;

(d) 237,500 cubic metres for Year 4;

(e) 242,000 cubic metres for Year 5;

(f) 246,500 cubic metres for Year 6;

(g) 251,000 cubic metres for Year 7;

(h) 255,500 cubic metres for Year 8;

(i) 260,000 cubic metres for Year 9;

(j) 264,500 cubic metres for Year 10;

(k) 269,000 cubic metres for Year 11;

(l) 273,500 cubic metres for Year 12;

(m) 278,000 cubic metres for Year 13;

(n) 282,500 cubic metres for Year 14;

(o) 287,000 cubic metres for Year 15; and

(p) for each year beginning in Year 16 and continuing thereafter, the trigger level shall be 4,500 cubic metres greater than the trigger level in the previous year.

9. With respect to the originating forest goods provided for in the tariff items indicated with "SG14" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from Malaysia, only when the aggregate volume of imports of those originating

forest goods from Malaysia in any year exceeds the trigger level set out as follows:

(a) 1,044,000 cubic metres for Year 1, except as provided in paragraph 16;

(b) 1,064,900 cubic metres for Year 2;

(d) 1,106,700 cubic metres for Year 4;

(e) 1,127,600 cubic metres for Year 5;

(f) 1,148,500 cubic metres for Year 6;

(g) 1,169,400 cubic metres for Year 7;

(h) 1,190,300 cubic metres for Year 8;

(i) 1,211,200 cubic metres for Year 9;

(j) 1,232,100 cubic metres for Year 10;

(k) 1,253,000 cubic metres for Year 11;

(l) 1,273,900 cubic metres for Year 12;

(m) 1,294,800 cubic metres for Year 13;

(n) 1,315,700 cubic metres for Year 14;

(o) 1,336,600 cubic metres for Year 15; and

(p) for each year beginning in Year 16 and continuing thereafter, the trigger level shall be 31,300 cubic metres greater than the trigger level in the previous year.

10. With respect to the originating forest goods provided for in the tariff items indicated with "SG15" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from Malaysia, only when the aggregate volume of imports of those originating forest goods from Malaysia in any year exceeds the trigger level set out as follows:

(a) 616,000 cubic metres for Year 1, except as provided in paragraph 16;

(b) 628,300 cubic metres for Year 2;

(d) 652,900 cubic metres for Year 4;

(e) 665,200 cubic metres for Year 5;

(f) 677,500 cubic metres for Year 6;

(g) 689,800 cubic metres for Year 7;

(h) 702,100 cubic metres for Year 8;

(i) 714,400 cubic metres for Year 9;

(j) 726,700 cubic metres for Year 10;

(k) 739,000 cubic metres for Year 11;

(l) 751,300 cubic metres for Year 12;

(m) 763,600 cubic metres for Year 13;

(n) 775,900 cubic metres for Year 14;

(o) 788,200 cubic metres for Year 15; and

(p) for each year beginning in Year 16 and continuing thereafter, the trigger level shall be 18,500 cubic metres greater than the trigger level in the previous year.

11. With respect to the originating forest goods provided for in the tariff items indicated with "SG16" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from Viet Nam, only when the aggregate volume of imports of those originating forest goods from Viet Nam in any year exceeds the trigger level set out as follows:

(a) 180,000 cubic metres for Year 1, except as provided in paragraph 16;

(b) 193,000 cubic metres for Year 2;

(d) 219,000 cubic metres for Year 4;

(e) 232,000 cubic metres for Year 5;

(f) 245,000 cubic metres for Year 6;

(g) 258,000 cubic metres for Year 7;

(h) 271,000 cubic metres for Year 8;

(i) 284,000 cubic metres for Year 9;

(j) 297,000 cubic metres for Year 10;

(k) 310,000 cubic metres for Year 11;

(l) 323,000 cubic metres for Year 12;

(m) 336,000 cubic metres for Year 13;

(n) 349,000 cubic metres for Year 14; and

(o) 362,000 cubic metres for Year 15.

12. With respect to the originating forest goods provided for in the tariff items indicated with "SG17" in Column "Remarks" in the Tariff Schedule of Japan, Japan may apply a forest good safeguard measure on the originating forest goods from Canada, New Zealand or Chile, only when the aggregate volume of imports of those originating forest goods from Canada, New Zealand or Chile respectively in any year exceeds the trigger level set out for each of those Parties as follows:

(a) For Canada:

(i) 7,000 cubic metres for Year 1, except as provided in paragraph 16;

(ii) 7,100 cubic metres for Year 2;

(iii) 7,200 cubic metres for Year 3;

(iv) 7,300 cubic metres for Year 4;

(v) 7,400 cubic metres for Year 5;

(vi) 7,500 cubic metres for Year 6;

(vii) 7,600 cubic metres for Year 7;

(viii) 7,700 cubic metres for Year 8;

(ix) 7,800 cubic metres for Year 9;

(x) 7,900 cubic metres for Year 10;

(xi) 8,000 cubic metres for Year 11;

(xii) 8,100 cubic metres for Year 12;

(xiii) 8,200 cubic metres for Year 13;

(xiv) 8,300 cubic metres for Year 14;

(xv) 8,400 cubic metres for Year 15; and

(xvi) for each year beginning in Year 16 and continuing thereafter, the trigger level shall be 100 cubic metres greater than the trigger level in the previous year.

(b) For New Zealand:

(i) 60,000 cubic metres for Year 1, except as provided in paragraph 16;

(ii) 61,200 cubic metres for Year 2;

(iii) 62,400 cubic metres for Year 3;

(iv) 63,600 cubic metres for Year 4;

(v) 64,800 cubic metres for Year 5;

(vi) 66,000 cubic metres for Year 6;

(vii) 67,200 cubic metres for Year 7;

(viii) 68,400 cubic metres for Year 8;

(ix) 69,600 cubic metres for Year 9;

(x) 70,800 cubic metres for Year 10;

(xi) 72,000 cubic metres for Year 11;

(xii) 73,200 cubic metres for Year 12;

(xiii) 74,400 cubic metres for Year 13;

(xiv) 75,600 cubic metres for Year 14; and

(xv) 76,800 cubic metres for Year 15.

(i) 13,000 cubic metres for Year 1, except as provided in paragraph 16;

(ii) 14,000 cubic metres for Year 2;

(iii) 15,000 cubic metres for Year 3;

(iv) 16,000 cubic metres for Year 4;

(v) 17,000 cubic metres for Year 5;

(vi) 18,000 cubic metres for Year 6;

(vii) 19,000 cubic metres for Year 7;

(viii) 20,000 cubic metres for Year 8;

(ix) 21,000 cubic metres for Year 9;

(x) 22,000 cubic metres for Year 10;

(xi) 23,000 cubic metres for Year 11;

(xii) 24,000 cubic metres for Year 12;

(xiii) 25,000 cubic metres for Year 13;

(xiv) 26,000 cubic metres for Year 14; and

(xv) 27,000 cubic metres for Year 15.

13. Japan shall not apply or maintain any forest good safeguard measure set out in paragraphs 7 and 11 after the elimination of the customs duties on the corresponding originating forest goods provided for in the tariff items indicated with "SG12" and "SG16" in Column "Remarks" in the Tariff Schedule of Japan.

14. Japan shall not apply or maintain any forest good safeguard measure on the originating forest goods from New Zealand and Chile set out in paragraph 12 after the elimination of the customs duties on the corresponding originating forest goods provided for in the tariff items indicated with "SG17" in Column "Remarks" in the Tariff Schedule of Japan.

15. Japan and Malaysia shall examine the necessity of the forest good safeguard measures set out in paragraphs 9 and 10 in a committee established by those two Parties two years before the elimination of the customs duties on the originating forest goods provided for in the tariff items indicated with "SG14" and "SG15" in Column "Remarks" in the Tariff Schedule of Japan.

16. If Year 1 is less than 12 months, the applicable trigger level for Year 1 for the purposes of paragraphs 6 through 12 shall be determined by multiplying the whole volume for Year 1 set out in paragraphs 6 through 12 respectively by a fraction the numerator of which shall be the number of months between the date of entry into force of this Agreement for Japan and the following March 31 and the denominator of which shall be 12. For the purpose of determining the numerator specified in the previous sentence and for the purpose of determining the applicable trigger level in accordance with the previous sentence, any fraction of less than 1.0 shall be rounded to the nearest whole number (in the case of 0.5, the fraction shall be rounded to 1.0).

APPENDIX C

TARIFF DIFFERENTIALS

For an originating good identified below in Table C-1, during the period specified in the Table for each good, in accordance with the origin criterion applied in a claim for preferential tariff treatment of the importer:

(a) Japan shall apply either:

(i) the rate of customs duty applicable to the originating good from the Party where the good acquired the originating status in accordance with the process or change in tariff classification requirement set out in Annex 3-D (Product Specific Rules of Origin); or

(ii) the rate of customs duty applicable to the originating good from the Party where the largest value was added among claimed production process, or the highest rate among the rates applicable to the originating good from those Parties involved in claimed production process, when the good acquired the originating status through a production process in accordance with the requirement set out in Article 3.2 (a) or (b) (Originating Goods), or the regional value content requirement set out in Annex 3-D (Product-Specific Rules of Origin).

(b) Notwithstanding subparagraph (a)(i), for an originating good, other than a good classified in Chapters 84 through 91 that is assembled with parts, when the good acquired the originating status in accordance with the change in tariff classification requirement set out in Annex 3-D (Product-Specific Rules of Origin) and the material used in the production of the originating good is classified in, as the case may be:

(i) the same chapter as the complete or finished good if the applicable requirement is based on a change in chapter;

(ii) the same heading as the complete or finished good if the applicable requirement is based on a change in heading; or

(iii) the same subheading as the complete or finished good if the applicable requirement is based on a change in subheading, Japan shall apply the rate of customs duty applicable to the originating good from the Party where such material used in the production of the originating good, referred to in (i), (ii) or (iii) respectively, is produced.

(c) If the rate of customs duty is not determined by application of subparagraph (a) or (b), Japan shall apply the rate of customs duty applicable to the originating good from the Party where the largest value was added among claimed production process.

(d) If the product-specific rule of origin requires to satisfy the regional value content requirement in combination with the process requirement or the change in tariff classification requirement, the applicable rate of customs duty is determined by application of subparagraph (a) (ii).

Note: For greater certainty, this table includes only:

(1) those tariff items with a tariff differential of more than 3 percentage points; and

(2) those tariff items with a tariff differential for which the rate of customs duty is non-ad valorem.

APPENDIX D-1

BETWEEN JAPAN AND THE UNITED STATES ON MOTOR VEHICLE TRADE

Article 1

1. For the purposes of this Appendix:

Appendix Party means either Japan or the United States, as the case may be; motor vehicle means any good classified under heading 87.03 or 87.04;

originating motor vehicle means any motor vehicle qualifying as originating under Chapter 3 (Rules of Origin and Origin Procedures); and

TBT Agreement means the WTO Agreement on Technical Barriers to Trade, as may be amended.

The definitions of the terms used in this Appendix contained in Annex 1 of the TBT Agreement, including the chapeau and explanatory notes of Annex 1, are incorporated into this Appendix and shall form part of this Appendix mutatis mutandis.

2. Article 2, Article 3 and Article 4 shall apply to the preparation, adoption and application of all technical regulations, standards and conformity assessment procedures of central government bodies that may affect trade in motor vehicles between the Appendix Parties, except as provided in paragraphs 4 and 5.

3. All references in this Appendix to technical regulations, standards and conformity assessment procedures shall be construed to include any amendments to them and any addition to the rules or the product coverage of those technical regulations, standards and procedures, except amendments and additions of an insignificant nature.

4. This Appendix shall not apply to technical specifications prepared by a governmental entity for its production or consumption requirements. These specifications are covered by Chapter 15 (Government Procurement).

5. This Appendix shall not apply to sanitary and phytosanitary measures. These are covered by Chapter 7 (Sanitary and Phytosanitary Measures).

6. No Party other than an Appendix Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Appendix or to dispute settlement under Article 7 for any matter arising under this Agreement. No Appendix Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for nullification or impairment within the meaning of Article 28.3.1(c) (Scope) for any matter arising under Article 6, Article 7 or Article 8 of this Appendix.

Article 2

1. Except in those urgent circumstances referred to in Article 2.10 and Article 5.7 of the TBT Agreement, for any technical regulation or conformity assessment procedure that would require a substantial change in motor vehicle design or technology, each Appendix Party shall provide an interval between the date of publication of the technical regulation or conformity assessment procedure and the date on which compliance with the measure becomes mandatory that is usually not less than 12 months.

2. Each Appendix Party shall ensure that its advisory committees and similar groups established by, or operated under the direction of, an agency of the central level of government to provide to it advice or recommendations by consensus that could result in regulations or other measures that would materially affect the certification, importation, sale, distribution or functioning of motor vehicles, are established and operated in a transparent manner. To that end, each Appendix Party shall ensure that, in accordance with its laws and regulations:

(a) timely notice of the formation of such advisory committees and similar groups is published;

(b) timely notice of meetings of such advisory committees and similar groups is published;

(d) interested persons have opportunities to appear before or file statements with such advisory committees and similar groups; and

(e) detailed meeting minutes and other documents made available to or prepared by such advisory committees and similar groups are made available to the public.

(a) Each Appendix Party shall, no later than the date on which it first supplies information in writing to a non-governmental expert4or interested person for comment,5regarding a technical regulation, standard or conformity assessment procedure affecting motor vehicles that it is developing, make the same information publicly available, such as by publishing the information on an official website.

(b) Following the provision of information under subparagraph (a), the Appendix Party providing such information shall, on request of the other Appendix Party, provide additional available information with respect to the technical regulation, standard or conformity assessment procedure concerned, such as information regarding other regulatory approaches under consideration and analysis of the impact of that regulatory measure and those approaches.

(a) Each Appendix Party shall endeavour to periodically conduct post-implementation reviews of its significant regulations setting out technical regulations, standards or conformity assessment procedures that affect motor vehicles.

(b) For the purposes of this paragraph:

post-implementation review means an examination of the effectiveness of a technical regulation, standard or conformity assessment procedure after it has been implemented, including, as appropriate, an assessment of whether it achieves its stated objectives, the burden it imposes and its compatibility with other technical regulations, standards or conformity assessment procedures the Appendix Party has adopted.

Article 3

1. The Appendix Parties shall cooperate bilaterally, including in their activities under the Agreement concerning the Establishing of Global Technical Regulations for Wheeled Vehicles, Equipment and Parts which can be fitted and/or be used on Wheeled Vehicles (1998 Agreement), to harmonise standards for motor vehicle environmental performance and safety.

2. Each Appendix Party shall ensure that technical regulations related to motor vehicles are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade, to the extent provided for in Article 2.2 of the TBT Agreement. For this purpose, technical regulations related to motor vehicles shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks non fulfilment would create. Such legitimate objectives are, inter alia: national security requirements; the prevention of deceptive practices; and protection of human health or safety, animal or plant life or health, or the environment. In assessing such risks, relevant elements of consideration are, inter alia: available scientific and technical information, related processing technology or intended end-uses of products.

3. Neither Appendix Party shall prevent or unduly delay the placing on its market of a motor vehicle product on the ground that the product incorporates a new technology or a new feature which has not yet been regulated, unless the Appendix Party finds, based on scientific or technical information, that this new technology or new feature poses a risk for human health or safety, or the environment.

4. When an Appendix Party decides to refuse the placing on its market or require the withdrawal from its market of a motor vehicle product on the ground that the product incorporates a new technology or a new feature posing a risk for human health or safety, or the environment, the Appendix Party shall immediately notify the importer of the product of its decision. The notification shall include all relevant scientific or technical information.

5. Each Appendix Party shall adopt or maintain efficient procedures for the temporary importation of motor vehicles incorporating new technologies or new features for the purposes of demonstration, display or road testing within its territory. Each Appendix Party shall facilitate the entry of such vehicles into its territory in accordance with these procedures regardless of whether they comply with otherwise applicable standards or technical regulations.

(a) With respect to requirements of a safety regulation under the Road Vehicle Law (Law No. 185 of 1951) of Japan (Road Vehicle Law) that the competent authority of Japan identified as of April 1, 2015, if the competent authority of Japan finds that a requirement of the U.S. FMVSS is no less stringent than the requirement under the Road Vehicle Law to which it corresponds, originating motor vehicles from the United States classified under heading 87.03 that comply with such a requirement of the U.S. FMVSS shall be deemed to comply with that requirement under the Road Vehicle Law. Such treatment shall apply unless that requirement under the Road Vehicle Law is modified and, as modified, is substantially more stringent than previously. In that event, Japan shall continue to provide such treatment for a period that is usually not less than 12 months after the date on which the requirement under the Road Vehicle Law is modified.

(b) Japan shall permit the importation and use of any motor vehicle part necessary to repair or service an originating motor vehicle from the United States classified under heading 87.03 that, at the time of the motor vehicle's initial inspection in Japan, was deemed, pursuant to subparagraph (a), to comply with a requirement under the Road Vehicle Law, provided that the part meets the same specifications of the part originally installed in the motor vehicle at the time of its initial inspection.

U.S. FMVSS means Federal Motor Vehicle Safety Standard of the United States; and

initial inspection means the inspection that motor vehicles must undergo in order to be used for transport in Japan in accordance with the Road Vehicle Law.

Article 4

1. Japan shall not adopt any requirement under the Preferential Handling Procedure that is not applied on the date of entry into force of this Agreement with respect to Japan and the United States and that increases the burden, including the complexity and cost, for importers under the Preferential Handling Procedure, except for requirements related to new technical regulations or amendments to existing technical regulations that are prepared, adopted and applied in a manner consistent with Article 3.2 after that date, or for an increase of fees and charges commensurate with the cost of services rendered under the Preferential Handling Procedure.

2. Japan shall ensure that the Preferential Handling Procedure and its relevant regulations are adopted and applied in a manner that does not preclude the eligibility of motor vehicles imported under the Preferential Handling Procedure for any financial incentive measures of central government bodies14 with respect to motor vehicles.

3. For the purposes of this Article:

Preferential Handling Procedure means a simplified conformity assessment procedure conducted exclusively for imported motor vehicles up to a designated number for each type, in accordance with the notification of the Minister of Land, Infrastructure, Transport and Tourism of Japan.

Article 5

To the extent that an Appendix Party maintains and applies any laws or regulations at the central level of government with respect to zoning applicable to the establishment of distribution or repair facilities for motor vehicles, it shall ensure such laws or regulations are applied in a transparent and non discriminatory manner.

Article 6

An Appendix Party may apply a transitional safeguard measure on originating motor vehicles from the other Appendix Party classified under heading 87.03 or 87.04, during the transition period only, in accordance with the provisions set out in Chapter 6 (Trade Remedies), with the following procedural modifications:

(a) In lieu of the definition of transition period provided for in Article 6.1 (Definitions), the following definition shall apply:

transition period means the period beginning on the date of entry into force of this Agreement with respect to Japan and the United States and ending on the date that is 10 years after the end of the period of the staged tariff elimination for a particular good.

(b) In lieu of Article 6.4.2 (Standards for a Transitional Safeguard Measure), the following shall apply:

Neither Appendix Party shall apply a transitional safeguard measure for a period exceeding two years, except that the period may be extended by up to two years if the competent authority of the Appendix Party that applies the measure determines, in conformity with the procedures set out in Article 6.5 (Investigation Procedures and Transparency Requirements), that the transitional safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment.

(d) In lieu of paragraphs 1 and 2 of Article 6.7 (Compensation), the following shall apply:

(i) an Appendix Party applying a transitional safeguard measure shall consult with the other Appendix Party in order to mutually agree on appropriate trade liberalising compensation in the form of concessions that have substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the transitional safeguard measure. The Appendix Party shall provide an opportunity for those consultations no later than 30 days after the application of the transitional safeguard measure;

(ii) if the consultations under subparagraph (d)(i) do not result in an agreement on trade liberalising compensation within 30 days after the consultations begin, the Appendix Party against whose good the transitional safeguard measure is applied may suspend the application of substantially equivalent concessions to the trade of the Appendix Party applying the transitional safeguard measure; and

(iii) the right of suspension referred to in subparagraph (d)(ii) shall not be exercised for the first 24 months during which a transitional safeguard measure is in effect, provided that the transitional safeguard measure conforms to the provisions of this Agreement.

Article 7

1. For the purposes of this Article, the definitions set out in Article 28.1 (Definitions) shall apply, mutatis mutandis.

(b) The Appendix Party to which a request for consultations is made shall, unless the Appendix Parties agree otherwise, reply in writing to the request no later than seven days after the date of its receipt of the request. That Appendix Party shall circulate its reply concurrently to the other Parties through the overall contact points and enter into consultations in good faith.

(c) Unless the Appendix Parties agree otherwise, they shall enter into consultations no later than 15 days after the date of receipt of the request.

(d) Unless the Appendix Parties agree otherwise, paragraphs 5 through 8 of Article 28.5 (Consultations) shall apply, mutatis mutandis, to the consultations under this paragraph.

(b) The complaining Appendix Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

(a) Unless the Appendix Parties agree otherwise no later than 15 days after the date of delivery of the request for the establishment of a panel, the terms of reference shall be to:

(i) examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of a panel under paragraph 4(a); and

(a) A panel shall be composed of three members.

(b) Unless the Appendix Parties agree otherwise, they shall apply the following procedures to compose a panel:

(ii) If the complaining Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the dispute settlement proceedings shall lapse at the end of that period.

(iii) If the responding Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the complaining Appendix Party shall select the panellist not yet appointed:

(A) from the responding Appendix Party's list established under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists);

no later than 20 days after the date of delivery of the request for the establishment of a panel under paragraph 4(a).

(iv) For appointment of the third panellist, who shall serve as chair:

(A) the Appendix Parties shall endeavour to agree on the appointment of a chair;

(v) If a panellist selected under subparagraph (b)(iii) or (iv)(B) is unable to serve on the panel, the Appendix Parties shall meet no later than five days after the date of learning that the panellist is unavailable to select another panellist from among the remaining members of the list (in the case of subparagraph (b)(iii)), or the roster (in the case of subparagraph (b)(iv)(B)).

(vi) If a panellist appointed under this paragraph resigns or becomes unable to serve on the panel, either during the course of proceeding or when the panel is reconvened under paragraph 10(b), 13 or 17, a replacement panellist shall be appointed within 12 days in accordance with the selection procedures prescribed in this subparagraph for the appointment of the original panellist. The replacement shall have all the powers and duties of the original panellist. The work of the panel shall be suspended pending the appointment of the replacement panellist, and all time frames set out in this Article and in the Rules of Procedure shall be extended by the amount of time that the work was suspended.

(vii) Paragraphs 4, 5 and 10 of Article 28.9 (Composition of Panels) shall apply, mutatis mutandis, to the selection procedures.

8. Unless the Appendix Parties agree otherwise, Article 28.4 (Choice of Forum), Article 28.6 (Good Offices, Conciliation and Mediation), Article 28.12 (Function of Panels), Article 28.15 (Role of Experts), Article 28.16 (Suspension or Termination of Proceedings), Article 28.17 (Initial Report) and Article 28.18 (Final Report) shall apply, mutatis mutandis,22 to panel proceedings under this Article, except that:

(a) with respect to Article 28.17.3 (Initial Report), the panel shall present an initial report to the Appendix Parties no later than 120 days after the date of the appointment of the last panellist;

(d) with respect to Article 28.18.1 (Final Report), the panel shall present a final report to the Appendix Parties, including any separate opinions on matters not unanimously agreed, no later than 20 days after presentation of the initial report. After taking any steps to protect confidential information, and no later than seven days after the presentation of the final report, the Appendix Parties shall release the final report to the public.

9. Unless the Appendix Parties agree otherwise, paragraphs 1 and 2 of Article 28.19 (Implementation of Final Report) shall apply, mutatis mutandis, to the implementation of the final report.

10.

(a) Unless the Appendix Parties agree otherwise, if in its final report the panel determines that:

(i) (A) the measure at issue is inconsistent with an Appendix Party's obligations in this Agreement;

(B) an Appendix Party has otherwise failed to carry out its obligations in this Agreement; or

(ii) the non-conformity or the nullification or impairment that the panel has determined to exist has materially affected the sale, offering for sale, purchase, transportation, distribution or use of originating motor vehicles from the complaining Appendix Party, the complaining Appendix Party may suspend the application to the responding Appendix Party of benefits or take action in accordance with paragraphs 11 through 17.

(b) Unless the Appendix Parties agree otherwise, if in its final report the panel determines that the non-conformity or the nullification or impairment that the panel has determined to exist under subparagraph (a)(i) has not materially affected the sale, offering for sale, purchase, transportation, distribution or use of originating motor vehicles from the complaining Appendix Party, the procedures provided for in paragraphs 3 through 7 of Article 28.19 (Implementation of Final Report), Article 28.20 (Non Implementation – Compensation and Suspension of Benefits) and Article 28.21 (Compliance Review) shall apply, mutatis mutandis.

11. If a final report that contains a determination described in paragraph 10(a) is presented to the Appendix Parties under paragraph 8(d) on or after the date on which customs duties imposed by the complaining Appendix Party on originating motor vehicles from the responding Appendix Party classified under heading 87.03, Harmonized Tariff Schedule of the United States (HTSUS) 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00 have begun to be reduced in accordance with the complaining Appendix Party's Schedule to Annex 2-D (Tariff Commitments), taking into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to paragraph 14(a)(i), the complaining Appendix Party may increase the rate of customs duty on those originating motor vehicles:

(a) to a level not to exceed the prevailing most-favoured-nation applied rate of customs duty on those motor vehicles, for a period of up to 90 days after the release of the final report under paragraph 8(d); and

(b) thereafter, to a level not to exceed the prevailing most-favoured nation applied rate of customs duty on those motor vehicles, less 50 per cent of the difference between that rate and the rate of customs duty on those originating motor vehicles set out in the complaining Appendix Party's Schedule to Annex 2-D (Tariff Commitments), as adjusted to take into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to paragraph 14(a)(i), provided that the complaining Appendix Party shall not suspend the application to the responding Appendix Party of benefits under this paragraph following a determination by the panel under paragraph 13.

12.

(a) At any time after release of a final report that contains a determination described in paragraph 10(a), the complaining Appendix Party may provide a written notice to the responding Appendix Party that it intends to suspend benefits under paragraph 14(a)(ii) or (b), or to take action under paragraph 14(a)(i). The notice shall specify the level of benefits that the complaining Appendix Party proposes to suspend under paragraph 14(a)(ii) or (b), or the level of benefits for the purposes of taking action under paragraph 14(a)(i). The complaining Appendix Party may request that the panel be reconvened to determine the level of benefits up to which it may suspend under paragraph 14(a)(ii) or (b), or the level of benefits for the purposes of taking action under paragraph 14(a)(i), at any time after it provides a notice under this subparagraph.

(b) If the responding Appendix Party considers that the level of benefits proposed to be suspended or that has been suspended under paragraph 14(a)(ii) or (b), or the level of benefits for the purposes of taking action under paragraph 14(a)(i), is manifestly excessive, or that it has eliminated the non-conformity or the nullification or impairment that the panel has determined to exist, it may request that the panel be reconvened to consider the matter.

(c) Regardless of whether the complaining Appendix Party has provided a notice under subparagraph (a), the responding Appendix Party may request that the panel be reconvened to determine the level of benefits under paragraph 13:

(i) if the complaining Appendix Party has increased the rate of customs duty under paragraph 11; or

(ii) for the purposes of the determination of the length of time by which the complaining Appendix Party may delay implementation of the period of the staged tariff elimination under paragraph 14(a)(i).

(d) An Appendix Party shall deliver any request to reconvene the panel in writing to the other Appendix Party.

13. Unless the Appendix Parties agree otherwise, the panel shall reconvene as soon as possible after the date of delivery of the request under paragraph 12 and shall present to the Appendix Parties its determination of the level of benefits that the complaining Appendix Party may suspend no later than 90 days after it reconvenes. The panel shall determine the level of benefits that the complaining Appendix Party may suspend under paragraph 14(a)(ii) or (b), or the level of benefits for the purposes of taking action under paragraph 14(a)(i), as the sum of:

(a) the level of benefits of equivalent effect, as set out in Article 28.20.5 (Non-Implementation – Compensation and Suspension of Benefits); and

(b) the level of benefits referred to in subparagraph (a) multiplied by the ratio of the average of the total value of annual imports of originating motor vehicles from the responding Appendix Party classified under heading 87.03 into the complaining Appendix Party in the most recent four years to the average of the total value of annual imports of originating motor vehicles from the complaining Appendix Party classified under heading 87.03 into the responding Appendix Party in the most recent four years, to the extent that the sum of this amount and the level of benefits referred to in subparagraph (a) does not exceed the amount that is the sum of 3.75 per cent of the average of the total value of annual imports of originating motor vehicles from Japan classified under heading 87.03 into the United States in the most recent four years and 37.5 per cent of the average of the total value of annual imports of originating motor vehicles from Japan classified under HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 and HTSUS 8704.90.00 into the United States in the most recent four years.

14. Following a determination by the panel under paragraph 13, the complaining Appendix Party may:

(a) (i) if a final report that contains a determination described in paragraph 10(a) is presented to the Appendix Parties under paragraph 8(d) prior to the date on which customs duties imposed by the complaining Appendix Party on originating motor vehicles from the responding Appendix Party classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00 will begin to be reduced in accordance with the complaining Appendix Party's Schedule to Annex 2-D (Tariff Commitments), taking into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to paragraph 14(a)(i), delay implementation of the period of the staged tariff elimination of originating motor vehicles from the responding Appendix Party classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00, in accordance with the following:

(A) the length of time by which the complaining Appendix Party may delay implementation of the period of the staged tariff elimination shall be the product of the period of non-conformity or nullification or impairment and the level of benefits determined by the panel under paragraph 13, divided by the amount that is the sum of 3.75 per cent of the average of the total value of annual imports of originating motor vehicles from Japan classified under heading 87.03 into the United States in the most recent four years and 37.5 per cent of the average of the total value of annual imports of originating motor vehicles from Japan classified under HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 and HTSUS 8704.90.00 into the United States in the most recent four years; and

(B) for the purposes of paragraph 14(a)(i), the period of non-conformity or nullification or impairment shall be the period beginning on the date on which the final report that contains a determination described in paragraph 10(a) is presented to the Appendix Parties under paragraph 8(d), and ending on the date on which the panel determines that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment or a mutually satisfactory solution is reached, provided that, if the date on which the panel issues its determination under paragraph 13 is more than 90 days after the date on which the panel reconvenes, the number of days by which the issuance of that determination exceeded 90 days shall not be included in the period of non-conformity or nullification or impairment; or

(ii) if a final report that contains a determination described in paragraph 10(a) is presented to the Appendix Parties under paragraph 8(d) on or after the date on which customs duties imposed by the complaining Appendix Party on originating motor vehicles from the responding Appendix Party classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00 have begun to be reduced in accordance with the complaining Appendix Party's Schedule to Annex 2-D (Tariff Commitments), taking into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to subparagraph (a)(i), unless the panel has determined that the responding Appendix Party has eliminated the non conformity or the nullification or impairment, suspend the application of benefits to the responding Appendix Party with respect to those originating motor vehicles up to the level determined by the panel under paragraph 13, provided that, to the extent that the level of benefits determined by the panel under paragraph 13(a) exceeds the level of benefits that may be suspended with respect to those originating motor vehicles, the complaining Appendix Party may increase the rate of customs duty on originating goods from the responding Appendix Party other than those originating motor vehicles to a level not exceeding the prevailing most-favoured-nation applied rate of customs duty on such goods; or

(b) if the prevailing most-favoured-nation applied rate of customs duty imposed by the complaining Appendix Party on motor vehicles classified under headings 87.03 and 87.04 is zero per cent, unless the panel has determined that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment, suspend the application to the responding Appendix Party of benefits with respect to originating goods from the responding Appendix Party up to the level determined by the panel under paragraph 13; and

(i) if a final report that contains a determination described in paragraph 10(a) is presented to the Appendix Parties under paragraph 8(d) prior to the date on which customs duties imposed by the responding Appendix Party on originating motor vehicles from the complaining Appendix Party classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00 will begin to be reduced in accordance with the responding Appendix Party's Schedule to Annex 2-D (Tariff Commitments), taking into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to subparagraph (a)(i), for a period of up to 90 days after the date on which the panel issues its determination under paragraph 13, suspend the application to the responding Appendix Party of benefits with respect to originating goods from the responding Appendix Party up to the level that is one-fourth of the annual level of benefits determined by the panel under paragraph 13; or

(A) for a period of up to 90 days after the date on which the panel issues its determination under paragraph 13, suspend the application to the responding Appendix Party of benefits with respect to originating goods from the responding Appendix Party up to one-fourth of the amount that is the sum of 3.75 per cent of the average of the total value of annual imports of originating motor vehicles from Japan classified under heading 87.03 into the United States in the most recent four years and 37.5 per cent of the average of the total value of annual imports of originating motor vehicles from Japan classified under HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 and HTSUS 8704.90.00 into the United States in the most recent four years; and

(B) if the date on which the panel issues its determination under paragraph 13 is more than 90 days after the date on which the panel reconvenes, beginning on the date that is 90 days after the panel issues its determination, for the number of days by which the issuance of that determination exceeded 90 days, suspend the application to the responding Appendix Party of benefits with respect to originating goods from the responding Appendix Party up to an amount that shall not exceed one-half of the amount described under subparagraph (b)(ii)(A), provided that the increased rate of customs duty applied to any good shall not exceed the prevailing most-favoured-nation applied rate of customs duty on that good.

15. Suspension of benefits under paragraph 11 or paragraph 14(a)(ii) or (b) shall be a temporary measure and only be applied until the responding Appendix Party has eliminated the non-conformity or the nullification or impairment, or until a mutually satisfactory solution is reached.

16.

(a) The complaining Appendix Party shall provide a written notice to the responding Appendix Party of any increase in the rate of customs duty pursuant to paragraph 11 or paragraph 14(a)(ii) or (b) no later than the date on which the increase in the rate of customs duty takes effect.

(b) The complaining Appendix Party shall provide a written notice to the responding Appendix Party of the length of any delay of implementation of the period of the staged tariff elimination pursuant to paragraph 14(a)(i) no later than the day immediately preceding the date on which the first reduction in the rate of customs duty on originating motor vehicles referred to in that paragraph would have otherwise occurred.

17.

(a) Without prejudice to the procedures in paragraphs 11 through 14, if the responding Appendix Party considers that it has eliminated the non-conformity or the nullification or impairment found by the panel, it may refer the matter to the panel by providing a written notice to the complaining Appendix Party. The panel shall issue its report on the matter no later than 90 days after the responding Appendix Party provides the written notice.

(b) If the panel determines that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment, the complaining Appendix Party shall promptly reinstate any benefits suspended under paragraph 11 or paragraph 14(a)(ii) or (b).

18. The procedures set out in this Article shall apply beginning on January 1 of the second year after the date of entry into force of this Agreement with respect to Japan and the United States and ending on the date that is five years after the date on which customs duties imposed by the United States on originating motor vehicles from Japan classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 and HTSUS 8704.90.00 have been eliminated in accordance with the United States Schedule to Annex 2-D (Tariff Commitments), taking into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to paragraph 14(a)(i), provided that the procedures shall apply to any dispute for which the final report of the panel under paragraph 8(d) was presented prior to that date.

19. The Appendix Parties shall review, on request of either Appendix Party, the operation and effectiveness of this Article five years after the date of entry into force of this Agreement with respect to Japan and the United States, and at such interval as the Appendix Parties decide thereafter.

Article 8

1. An Appendix Party may request in writing to initiate a process for consultations with the other Appendix Party with respect to any non-tariff measure that relates to motor vehicles that the other Appendix Party is considering proposing or has proposed, regardless of whether the other Appendix Party has published the non-tariff measure for comment.

2. The process for consultations shall take place no later than 10 days after the date of receipt of a request under paragraph 1, unless the Appendix Parties agree otherwise. The Appendix Party to which such a request is made shall afford the requesting Appendix Party an opportunity to raise issues and to make inquiries, provide the requesting Appendix Party with information to the extent possible, and hear the views of the requesting Appendix Party on the non-tariff measure referred to in paragraph 1.

3. If a request under paragraph 1 concerns a proposed non-tariff measure that is open for comment, the Appendix Party to which the request is made shall refrain from implementing the proposed non-tariff measure during the comment period, except where urgent problems of safety, health, environmental protection or national security arise.

4. If a non-tariff measure as to which a request has been made under paragraph 1 is adopted, and the requesting Appendix Party considers that, as described in Article 28.3.1(b) (Scope), the measure is inconsistent with an obligation of this Agreement, or that the measure nullifies or impairs benefits within the meaning of Article 28.3.1(c) (Scope), the requesting Appendix Party may so notify the other Appendix Party in writing. The notification shall include identification of the measure at issue and an indication of the legal basis for the complaint. The Appendix Party that made the notification may request the establishment of a panel pursuant to Article 7.4 at any time after the date that is 14 days after the date of receipt of the notification, provided that, on request of either Appendix Party, the Appendix Parties shall enter into consultations with respect to the matter no later than 14 days after the date of receipt of the notification.

5. If the Appendix Parties hold consultations under paragraph 4, either Appendix Party may request additional consultations no later than 14 days after the date of receipt of the notification under paragraph 4. If such a request is made, the Appendix Parties shall hold additional consultations promptly thereafter. In that event, the Appendix Party that made the notification may request the establishment of a panel pursuant to Article 7.4 at any time after the date that is 30 days after the date of receipt of the notification.

6. Paragraphs 5 through 8 of Article 28.5 (Consultations) shall apply, mutatis mutandis,30 to consultations under paragraphs 4 and 5.

Article 9

(a) monitor implementation of the obligations in this Agreement with respect to motor vehicles;

(d) facilitate increased cooperation with respect to emerging issues, including the manufacture, importation, sale and operation of motor vehicles using alternative fuels, and cooperation between the Appendix Parties with respect to issues concerning other markets;

(e) monitor bilateral, regional and global market developments and trends in trade, investment, production, sales and distribution with respect to motor vehicles and motor vehicle parts;

(f) provide opportunities for input from interested persons of the Appendix Parties on matters relevant to the Committee's work, as the Appendix Parties may agree; and

(g) address other issues, if the Appendix Parties agree.

2. The Committee shall meet on request of either Appendix Party and, unless the Appendix Parties decide otherwise, no less than once a year. Meetings shall take place in such locations and through such means as the Appendix Parties decide.

APPENDIX D-2

BETWEEN JAPAN AND CANADA ON MOTOR VEHICLE TRADE

Article 1

1. For the purposes of this Appendix:

Appendix Party means either Japan or Canada, as the case may be; motor vehicle means any good classified under heading 87.03; and

originating motor vehicle means any motor vehicle qualifying as originating under Chapter 3 (Rules of Origin and Origin Procedures).

Article 2

Article 3

(a) In lieu of the definition of transition period provided for in Article 6.1 (Definitions), the following definition shall apply:

(b) In lieu of Article 6.4.2 (Standards for a Transitional Safeguard Measure), the following shall apply:

(d) In lieu of paragraphs 1 and 2 of Article 6.7 (Compensation), the following shall apply:

Article 4

1. For the purposes of this Article, the definitions set out in Article 28.1 (Definitions) shall apply, mutatis mutandis.

28.14 (Third Party Participation), Article 28.15 (Role of Experts), Article 28.16 (Suspension or Termination of Proceedings), Article 28.17 (Initial Report), Article 28.18 (Final Report), Article 28.19 (Implementation of Final Report), Article 28.20 (Non-Implementation – Compensation and Suspension of Benefits) and Article 28.21 (Compliance Review).

(b) The Appendix Party to which a request for consultations is made shall, unless the Appendix Parties agree otherwise, reply in writing to the request no later than seven days after the date of its receipt of the request. That Appendix Party shall circulate its reply concurrently to the other Parties through the overall contact points and enter into consultations in good faith.

(c) Unless the Appendix Parties agree otherwise, they shall enter into consultations no later than 15 days after the date of receipt of the request.

(d) Unless the Appendix Parties agree otherwise, paragraphs 5 through 8 of Article 28.5 (Consultations) shall apply, mutatis mutandis, to the consultations under this paragraph.

(b) The complaining Appendix Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

(a) Unless the Appendix Parties agree otherwise no later than 15 days after the date of delivery of the request for the establishment of a panel, the terms of reference shall be to:

(i) examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of a panel under paragraph 4(a); and

6. (a) A panel shall be composed of three members.

(b) Unless the Appendix Parties agree otherwise, they shall apply the following procedures to compose a panel:

(ii) If the complaining Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the dispute settlement proceedings shall lapse at the end of that period.

(iii) If the responding Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the complaining Appendix Party shall select the panellist not yet appointed:

(A) from the responding Appendix Party's list established under Article 28.11.9 (Roster of Panel

Chairs and Party Specific Lists);

(B) if the responding Appendix Party has not established a list under Article 28.11.9 (Roster of

Panel Chairs and Party Specific Lists), from the roster of panel chairs established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists); or

(iv) For appointment of the third panellist, who shall serve as chair:

(A) the Appendix Parties shall endeavour to agree on the appointment of a chair;

(vii) Paragraphs 4, 5 and 10 of Article 28.9 (Composition of Panels) shall apply, mutatis mutandis,to the selection procedures.

8. Unless the Appendix Parties agree otherwise, Article 28.4 (Choice of Forum), Article 28.6 (Good Offices, Conciliation and Mediation), Article 28.12 (Function of Panels), Article 28.15 (Role of Experts), Article 28.16 (Suspension or Termination of Proceedings), Article 28.17 (Initial Report) and Article 28.18 (Final Report) shall apply, mutatis mutandis,to panel proceedings under this Article, except that:

(a) with respect to Article 28.17.3 (Initial Report), the panel shall present an initial report to the Appendix Parties no later than 100 days after the date of the appointment of the last panellist;

9. Unless the Appendix Parties agree otherwise, paragraphs 1 and 2 of Article 28.19 (Implementation of Final Report) shall apply, mutatis mutandis,to the implementation of the final report.

10. (a) Unless the Appendix Parties agree otherwise, if in its final report the panel determines that:

(i) (A) the measure at issue is inconsistent with an Appendix Party's obligations in this Agreement;

(B) an Appendix Party has otherwise failed to carry out its obligations in this Agreement; or

(ii) the non-conformity or the nullification or impairment that the panel has determined to exist has materially affected the sale, offering for sale, purchase, transportation, distribution or use of originating motor vehicles from the complaining Appendix Party, the complaining Appendix Party may suspend the application to the responding Appendix Party of benefits in accordance with this paragraph, paragraph 11 and paragraphs 13 through 16.

(i) six months from the presentation of the final report under Article 28.18.1 (Final Report) as applied pursuant to paragraph 8; or

11. (a) The responding Appendix Party shall, if requested by the complaining Appendix Party, enter into negotiations with the complaining Appendix Party no later than 15 days after receipt of that request, with a view to developing mutually acceptable compensation, if:

(i) the responding Appendix Party has notified the complaining Appendix Party that it does not intend to eliminate the non \conformity or the nullification or impairment; or

(b) A complaining Appendix Party may suspend benefits in accordance with subparagraph (c) if the Appendix Parties have:

(i) been unable to agree on compensation within a period of 30 days after the period for developing compensation has begun in accordance with subparagraph (a); or

(ii) agreed on compensation but the complaining Appendix Party considers that the responding Appendix Party has failed to observe the terms of the agreement.

13. (a) If the responding Appendix Party considers that:

(i) the level of benefits proposed to be suspended under paragraph 15 is manifestly excessive; or

(ii) it has eliminated the non-conformity or the nullification or impairment that the panel has determined to exist, it may, no later than 30 days after the date of delivery of the written notice provided by the complaining Appendix Party under paragraph 11(c), request that the panel be reconvened to consider the matter. The responding Appendix Party shall deliver its request in writing to the complaining Appendix Party. The panel shall reconvene as soon as possible after the date of delivery of the request and shall present its determination to the Appendix Parties no later than 90 days after delivery of the request.

(i) the level of benefits of equivalent effect, as set out in Article 28.20.5 (Non-Implementation – Compensation and Suspension of Benefits); and

14. Unless the panel has determined that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment, 30 days after the later of:

(a) the date on which the complaining Appendix Party provides the notice under paragraph 11(c); or

(b) if the responding Appendix Party requests that the panel be reconvened to consider the matter under paragraph 13(a)(ii), the date that the panel issues its determination under paragraph 13, the complaining Appendix Party may increase the rate of customs duty on originating motor vehicles from the responding Appendix Party classified under heading 87.03 to a level not to exceed the prevailing most-favoured nation applied rate of customs duty on those motor vehicles, for a period of up to 100 days following the 30-day period.

15. Unless the panel has determined that the responding Appendix Party has eliminated the non-conformity or the nullification or impairment:

(A) up to the level the panel has determined under paragraph 13(b)(i); and

(B) up to the level the panel has determined under paragraph 13(b)(ii) for a period of up to 100 days following the 30-day period, and

(b) if the responding Appendix Party does not request that the panel be reconvened to consider the matter under paragraph 13(a)(i) or the panel has not determined the level under paragraph 13(b), after the 30-day period, the complaining Appendix Party may suspend the application to the responding Appendix Party of benefits up to the level the complaining Appendix Party has proposed to suspend under paragraph 11(c), provided that the increased rate of customs duty applied to any goods under this paragraph shall not exceed the prevailing most-favoured-nation applied rate of customs duty on such goods.

17. Unless the Appendix Parties agree otherwise, Article 28.21 (Compliance Review) shall apply, mutatis mutandis,to compliance review.

Article 5

(a) monitor implementation of the obligations in this Agreement with respect to motor vehicles;

(d) monitor bilateral, regional and global market developments and trends in trade, investment, production, sales and distribution with respect to motor vehicles and motor vehicle parts;

(e) provide opportunities for input from interested persons of the Appendix Parties on matters relevant to the Committee's work, as the Appendix Parties may agree; and

(f) address other issues, if the Appendix Parties agree.

2. The Committee shall meet at mutually agreed times. Meetings shall take place in such locations and through such means as the Appendix Parties decide.

Malaysia

ANNEX 2-D

TARIFF SCHEDULE OF MALAYSIA GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the Malaysian Customs Duties Order (MCDO), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the MCDO. To the extent that provisions of this Schedule are identical to the corresponding provisions of MCDO, the provisions of this Schedule shall have the same meaning as the corresponding provisions of MCDO.

2. The base rates of duty set out in this Schedule reflect Malaysia's Most Favoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest hundredth of a Malaysian Ringgit.

4. The following staging categories shall apply to the elimination of customs duties by Malaysia pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B3 shall be eliminated in three annual stages, and these goods shall be duty-free effective January 1 of year 3;

(c) customs duties on originating goods provided for in the items in staging category B6 shall be eliminated in six annual stages, and these goods shall be duty-free effective January 1 of year 6;

(d) customs duties on originating goods provided for in the items in staging category B8 shall be eliminated in eight annual stages, and these goods shall be duty-free effective January 1 of year 8;

(e) customs duties on originating goods provided for in the items in staging category B11 shall be eliminated in 11 annual stages, and these goods shall be duty-free effective January 1 of year 11;

(f) customs duties on originating goods provided for in the items in staging category B13 shall be eliminated in 13 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(g) customs duties on originating goods provided for in the items in staging category B16 shall be eliminated in 16 annual stages, and these goods shall be duty-free effective January 1 of year 16; and

(h) customs duties on originating goods provided for in the items in staging category TRQ shall be governed by the terms of the TRQ applicable to that tariff item, as outlined in Appendix A (Tariff Rate Quotas of Malaysia) to Malaysia's Schedule to Annex 2-D .

5. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

TARIFF SCHEDULE OF MALAYSIA (HS2012)

APPENDIX A

TARIFF RATE QUOTAS OF MALAYSIA

Section A: General Provisions

1. This Appendix sets out the modifications to the Malaysian Customs Duties Order (MCDO) that reflect the TRQs that Malaysia shall apply to certain originating goods under this Agreement. In particular, originating goods of Parties included under this Appendix shall be subject to the rates of duty set out in this Appendix in lieu of the rates of duty specified in Chapters 1 through 97 of the MCDO. Notwithstanding any other provision of the MCDO, originating goods of a Party in the quantities described in this Appendix shall be permitted entry into the territory of Malaysia as provided in this Appendix. Furthermore, any quantity of originating goods imported from a Party under a TRQ provided for in this Appendix shall not be counted toward the in-quota quantity of any TRQ provided for such goods under Malaysia's WTO tariff schedule or any other trade agreement.

2. The product or products covered by each TRQ set out in Section B are informally identified in the title to the paragraph setting out the TRQ. These titles are included solely to assist readers in understanding this Appendix and shall not alter or supersede the coverage for each TRQ established through identification of covered codes of the Harmonized Schedule of Malaysia.

3. Malaysia shall administer all TRQs provided for in this Agreement through an import licensing system.

4. Each TRQ set out below in Section B of this Appendix shall apply to an aggregate quantity of originating goods.

5. For the purposes of this Appendix, the term "kilogramme" shall be abbreviated as "kg". The term "unit", referred to in TRQ-MY 12 through TRQ MY15 means one egg, and shall be abbreviated as "u".

Section B: TRQs

6. TRQ-MY1: Live Poultry, Fowls of the Species Gallus Domesticus, Weighing Not More Than 185g: Other

(a) The TRQ described in this paragraph is designated in the Schedule of Malaysia to Annex 2-D (Tariff Commitments) with the designation "TRQ-MY1".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 16 equal annual stages, from the Base Rate of 20 per cent to 10 per cent, and these duties shall remain at 10 per cent effective January 1 of year 16.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 010511900.

7. TRQ-MY2: Live Poultry, Fowls of the Species Gallus Domesticus, Weighing Not More Fowls of Species Gallus Domesticus Weighing Not More Than 2,000g

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY2".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in six equal annual stages, from the Base Rate of 20 per cent to 10 per cent, and these duties shall remain at 10 per cent effective January 1 of year 6.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 010594190.

8. TRQ-MY3: Meat of Swine, Fresh Or Chilled – Carcasses and Half Carcasses

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY3".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be removed in accordance with staging category B16 in the General Notes to the Schedule of Malaysia to Annex 2-D (Tariff Commitments).

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 020311000.

9. TRQ-MY4: Meat of Swine, Frozen – Carcasses and Half-Carcasses

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY4".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 020321000.

10. TRQ-MY5: Meat of Fowls of the Species Gallus Domesticus Not Cut in Pieces, Fresh or Chilled

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY5".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 16 equal annual stages, from the Base Rate of 40 per cent to 20 per cent, and these duties shall remain at 20 per cent effective January 1 of year 16.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 020711000.

11. TRQ-MY6: Meat of Fowls of the Species Gallus Domesticus Not Cut in Pieces, Frozen

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY6".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 16 equal annual stages, from the Base Rate of 40 per cent to 20 per cent, and these duties shall remain at 20 per cent effective January 1 of year 16.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 020712000.

12. TRQ-MY7: Edible Cuts and Offal of the Species Gallus Domesticus, Fresh or Chilled

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY7".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in six equal annual stages, from the Base Rate of 40 per cent to 20 per cent, and these duties shall remain at 20 per cent effective January 1 of year 6.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 020713000.

13. TRQ-MY8: Edible Cuts and Offal of the Species Gallus Domesticus, Frozen

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY8".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 11 equal annual stages, from the Base Rate of 40 per cent to 20 per cent, and these duties shall remain at 20 per cent effective January 1 of year 11.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 020714000.

14. TRQ-MY9: Milk, of a Fat Content, By Weight, Not Exceeding 1 Per Cent: In Liquid Form

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY9".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 040110100.

15. TRQ-MY10: Milk, of a Fat Content, By Weight, Exceeding 1 Per Cent but Not Exceeding 6 Per Cent: In Liquid Form

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY10".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 040120100.

16. TRQ-MY11: Milk, of a Fat Content, By Weight, Exceeding 6 Per Cent: In Liquid Form

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY11".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 040140110.

17. TRQ-MY12: Fertilised Eggs for Incubation: Of Fowls of the Species Gallus Domesticus

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY12".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 11 equal annual stages, from the Base Rate of 50 per cent to 25 per cent, and these duties shall remain at 25 per cent effective January 1 of year 11.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 040711000.

18. TRQ-MY13: Fertilised Eggs For Incubation: Of Ducks

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY13".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by one per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 11 equal annual stages, from the Base Rate of 50 per cent to 25 per cent, and these duties shall remain at 25 per cent effective January 1 of year 11.

(d) Subparagraphs (a) through (c) apply to the following MCDO provision: 040719100.

19. TRQ-MY14: Other Eggs: Of Fowls of the Species Gallus Domesticus

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY14".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by 1 per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 11 equal annual stages, from the Base Rate of 50 per cent to 25 per cent, and these duties shall remain at 25 per cent effective January 1 of year 11.

(d) Subparagraphs (a) through (c) apply to the following MCDO provisions: 040721000 and 040790100.

20. TRQ-MY15: Other Eggs: Of Ducks

(a) The TRQ described in this paragraph is designated in Malaysia's Schedule to Annex 2-D (Tariff Commitments) as "TRQ-MY15".

(b) The aggregate quantity of originating goods described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 2, the quantity shall increase by 1 per cent per year, compounded annually.

(c) Customs duties on originating goods described in subparagraph (d) entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be reduced in 11 equal annual stages, from the Base Rate of 50 per cent to 25 per cent, and these duties shall remain at 25 per cent effective January 1 of year 11.

(d) Subparagraphs (a) through (c) apply to the following MCDO provisions: 040729100 and 040790200.

Mexico

ANNEX 2-D

TARIFF SCHEDULE OF MEXICO GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of Mexico's Tariff Schedule of the General Import and Export Duties Law (Tarifa de la Ley de los Impuestos Generales de Importación y de Exportación (LIGIE)), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the LIGIE. To the extent that provisions of this Schedule are identical to the corresponding provisions of the LIGIE, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the LIGIE.

2. Except as otherwise provided in this Schedule, the base rates of duty set out in this Schedule reflect Mexico's Most-Favoured-Nation (MFN) rates of duty in effect on January 1, 2010. For items identified with an asterisk (*), the applicable base rates of duty are those set forth in this Schedule.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest 0.01 of a US dollar (USD).

4. The following staging categories shall apply to the elimination or reduction of customs duties by Mexico pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B3 shall be eliminated in three annual stages, and these goods shall be duty-free effective January 1 of year 3;

(c) customs duties on originating goods provided for in the items in staging category B5 shall be eliminated in five annual stages, and these goods shall be duty-free effective January 1 of year 5;

(d) customs duties on originating goods provided for in the items in staging category B8 shall be eliminated in eight annual stages, and these goods shall be duty-free effective January 1 of year 8;

(e) customs duties on originating goods provided for in the items in staging category B10 shall be eliminated in 10 annual stages, and these goods shall be duty-free effective January 1 of year 10;

(f) customs duties on originating goods provided for in the items in staging category B12 shall be eliminated in 12 annual stages, and these goods shall be duty-free effective January 1 of year 12;

(g) customs duties on originating goods provided for in the items in staging category B13 shall be eliminated in 13 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(h) customs duties on originating goods provided for in the items in staging category B15 shall be eliminated in 15 annual stages, and these goods shall be duty-free effective January 1 of year 15;

(i) customs duties on originating goods provided for in the items in staging category B16 shall be eliminated in 16 annual stages, and these goods shall be duty-free effective January 1 of year 16;

(j) customs duties on originating goods provided for in the items in staging category D shall be the rate of customs duty applied under the WTO Agreement;

(k) customs duties on originating goods provided for in the items in staging category MX10 shall be maintained at the base rate during year 1 through year 5 and shall be eliminated in five annual stages beginning in year 6, and these goods shall be duty-free effective January 1 of year 10;

(l) customs duties on originating goods provided for in the items in staging category MX11 shall be 16 per cent during year 1, and shall be eliminated in 10 annual stages beginning in year 2, and these goods shall be duty-free effective January 1 of year 11;

(m) customs duties on originating goods provided for in the items in staging category MX13 shall be maintained at the base rate during year 1 through year 3 and shall be eliminated in 10 annual stages beginning in year 4, and these goods shall be duty-free effective January 1 of year 13;

(n) customs duties on originating goods provided for in the items in staging category MX16 shall be maintained at the base rate during year 1 through year 5 and shall be eliminated in 11 annual stages beginning in year 6, and these goods shall be duty-free effective January 1 of year 16;

(o) customs duties on originating goods provided for in the items in staging category MX-R1 shall be reduced by 50 per cent of the base rate in 10 annual stages beginning in year 1, and the customs duty for these goods shall be 10 per cent effective January 1 of year 10 and each subsequent year;

(p) customs duties on originating goods provided for in the items in staging category MX-R2 shall be reduced by 50 per cent of the base rate in five annual stages beginning in year 1, and the customs duty for these goods shall be 36 per cent effective January 1 of year 5 and each subsequent year;

(q) customs duties on originating goods provided for in the items in staging category MX-R3 shall be reduced by 70 per cent of the base rate in seven annual stages beginning in year 1, and the customs duty for these goods shall be 42 per cent effective January 1 of year 7 and each subsequent year;

(r) customs duties on originating goods provided for in the items in staging category MX-R4 shall be reduced as follows:

(i) the customs duty for these goods shall be reduced to 8 per cent in eight annual stages;

(ii) the customs duty for these goods shall be reduced to 7.75 per cent from the level set out in subparagraph (i) effective

January 1 of year 9; and

(iii) the customs duty for these goods shall be reduced to 7.5 per cent from the level set out in subparagraph (ii) effective January 1 of year 10 and each subsequent year;

(s) customs duties on originating goods provided for in the items in staging category MX-R5 shall be reduced as follows:

(i) the customs duty for these goods shall be reduced to 4 per cent in eight annual stages;

(ii) the customs duty for these goods shall be reduced to 3.87 per cent from the level set out in subparagraph (i) effective January 1 of year 9, and

(iii) the customs duty for these goods shall be reduced to 3.75 per cent from the level set out in subparagraph (ii) effective January 1 of year 10 and each subsequent year;

(t) customs duties on originating goods provided for in the items in staging category MX-R6 shall be reduced as follows:

(i) the customs duty for these goods shall be reduced to 1.33 per cent in eight annual stages;

(ii) the customs duty for these goods shall be reduced to 1.28 per cent from the level set out in subparagraph (i) effective

January 1 of year 9, and

(iii) the customs duty for these goods shall be reduced to 1.25 per cent from the level set out in subparagraph (ii) effective January 1 of year 10 and each subsequent year;

(u) customs duties on originating goods provided for in the items in staging category MX-R7 shall be reduced to 47.5 per cent in year 1;

(v) customs duties on originating goods provided for in the items in staging category CSQ shall be governed by the terms of the CSQ for that specific tariff line, as outlined in Appendix A-1 (Tariff Rate Quotas of Mexico) to Mexico's Schedule to Annex 2-D; and

(w) customs duties on originating goods provided for in the items in staging category CSA shall be governed by the terms of the CSA for that specific tariff line, as outlined in Appendix A-2 (Country Specific Allocation for Sugar of Mexico) to Mexico's Schedule to Annex 2-D .

5. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal annual stages, except:

6. Appendix C shall apply when Mexico applies different preferential tariff treatment to other Parties for an originating good specified in Appendix C (Tariff Differentials of Mexico) to this Schedule.

TARIFF SCHEDULE OF MEXICO (HS2012)

APPENDIX A-1

TARIFF RATE QUOTAS OF MEXICO

Section A: General Provisions

1. This Appendix sets out the country-specific tariff rate quotas (TRQs) that Mexico shall apply to certain originating goods of Parties under this Agreement. In particular, originating goods of Parties included under this Appendix shall be subject to the rates of duty set out in this Appendix in lieu of the rates of duty specified in Chapters 1 through 97 of the Mexico's tariff schedule of the General Import and Export Duties Law (Tarifa de la Ley de los Impuestos Generales de Importación y de Exportación – (LIGIE)). Notwithstanding any other provision of the LIGIE, originating goods of Parties to this Agreement in the quantities described in this Appendix shall be permitted entry into the territory of Mexico as provided in this Appendix. Furthermore, except as provided below, any quantity of originating goods imported from a Party under a TRQ provided for in this Appendix shall not be counted toward the in-quota quantity of any TRQ provided for such goods under Mexico's WTO Tariff Schedule or any other trade agreement.

2. Mexico shall administer its TRQs provided for in this Agreement and set out in Section B of this Appendix in accordance with the terms set out in this Appendix and Section D (Tariff Rate Quota Administration) of Chapter 2 (National Treatment and Market Access for Goods).

3. Should Mexico allocate quotas through auctioning, they shall be published online a month in advance, with no restrictions on participation or bid volumes, and all winning bidders shall pay the price of the lowest winning bid. Within two weeks of the auction, the names of winning bidders and prices and quantities of winning bids shall be published online.

4. For quotas administered on a first come, first served basis, Mexico may require importers to obtain an import licence from the Secretaría de Economía for each shipment. Such licences will be issued forthwith without any conditions, on presentation of a proof of purchase of goods covered by quotas listed below, provided quota volumes remain available. Mexico may consider the discontinuation of the import licence as improvements in customs operations permit.

5. The product or products covered by each TRQ set out in Section B are informally identified in the title to the paragraph setting out the TRQ. These titles are included solely to assist readers in understanding this Appendix and shall not alter or supersede the coverage established through identification of covered codes of Mexico's LIGIE.

6. Each TRQ set out in this Appendix shall apply to an aggregate quantity of originating goods of the Parties identified in the first subparagraph of the paragraph setting out the TRQ.

7. For the purposes of this Appendix, the term "metric tonnes" shall be abbreviated as "MT".

Section B: Country Specific TRQs (CSQ)

8. CSQ-MX1: Milk and Cream, not Concentrated or Containing Added Sugar or Other Sweetening Matter.

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Australia, Brunei, Canada, Japan, Malaysia, New Zealand, Singapore and Vietnam identified in subparagraph (e). The CSQ set out in this paragraph is designated in the Tariff Schedule of Mexico to Annex 2-D (Tariff Commitments) with the designation "CSQ-MX1".

(b) The aggregate quantity of originating goods of Australia, Brunei, Canada, Japan, Malaysia, New Zealand, Singapore and Vietnam described in subparagraph (e) that shall be permitted to enter duty free in each year under this CSQ is:

Starting in year 11, the quantity shall remain at 375,000 Litres per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico may allocate this CSQ through auctioning for no more than five years after the date of entry into force of this Agreement for Mexico. Starting in year 6, this CSQ shall be administered on a first come, first served basis.

(e) Subparagraphs (a) through (d) apply to the following heading: 04.01.

9. CSQ-MX2: Milk Powder

Starting in year 11, the quantity shall remain at 42,000 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico shall apply the following provisions in the administration of this CSQ:

(i) From year 1 to year 10, at least 80 per cent of the CSQ quantities set out in subparagraph (b) shall be allocated to tariff item 0402.21.01.

(ii) Mexico may allocate this CSQ through auctioning for no more than three years after the date of entry into force of this Agreement for Mexico. Starting in year 4, this CSQ shall be administered on a first come, first served basis.

(e) Subparagraphs (a) through (d) apply to the following tariff items: 0402.10.01 and 0402.21.01.

10. CSQ-MX3: Evaporated Milk

Starting in year 11, the quantity shall remain at 750 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico may allocate this CSQ through auctioning.

(e) Subparagraphs (a) through (d) apply to the following tariff items: 0402.91.01 and 0402.91.99.

11. CSQ-MX4: Condensed Milk

Starting in year 11, the quantity shall remain at 1,500 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico may allocate this CSQ through auctioning

(e) Subparagraphs (a) through (d) apply to the following tariff items: 0402.99.01 and 0402.99.99.

12. CSQ-MX5: Products Consisting of Natural Milk Constituents, Whether or not Containing Added Sugar or Other Sweetening Matter, not Elsewhere Specified or Included

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Australia, Brunei, Canada, Malaysia, New Zealand, Singapore and Vietnam identified in subparagraph (e). The CSQ set out in this paragraph is designated in the Tariff Schedule of Mexico to Annex 2-D (Tariff Commitments) with the designation "CSQ-MX5".

(b) The aggregate quantity of originating goods of Australia, Brunei, Canada, Malaysia, New Zealand, Singapore and Vietnam described in subparagraph (e) that shall be permitted to enter duty-free in each year under this CSQ is:

Starting in year 11, the quantity shall remain at 2,000 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico may allocate this CSQ through auctioning for no more than five years after entry into force of this Agreement for Mexico. Starting in year 6, this CSQ shall be administered on a first come, first served basis.

(e) Subparagraphs (a) through (d) apply to the following tariff item: 0404.90.99.

13. CSQ-MX6: Butter

Starting in year 11, the quantity shall remain at 2,000 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico may allocate this CSQ through auctioning for no more than three years after the date of entry into force of this Agreement for Mexico. Starting in year 4, this CSQ shall be administered on a first come, first served basis.

(e) Subparagraphs (a) through (d) apply to subheadings: 0405.10 and 0405.20.

14. CSQ-MX7: Cheese

Starting in year 11, the quantity shall remain at 6,500 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(e) Subparagraphs (a) through (d) apply to the following tariff items: 0406.10.01; 0406.20.01; 0406.30.01; 0406.30.99; 0406.90.03; 0406.90.04; 0406.90.05; 0406.90.06 and 0406.90.99.

15. CSQ-MX8: Dairy-Based Preparations

Starting in year 11, the quantity shall remain at 2,500 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(e) Subparagraphs (a) through (d) apply to the following tariff items: 1901.90.04 and 1901.90.05.

16. CSQ-MX9: Palm Oil and Palm Kernel Oil

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Malaysia identified in subparagraph (e). The CSQ set out in this paragraph is designated in the Tariff Schedule of Mexico to Annex 2-D (Tariff Commitments) with the designation "CSQ-MX9".

(b) The aggregate quantity of originating goods of Malaysia described in subparagraph (e) that shall be permitted to enter duty-free in each year under this CSQ is:

Starting in year 3, the quantity shall remain at 12,000 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities set out in subparagraph (b) shall continue to receive the rate of customs duty applied under the WTO Agreement.

(d) Mexico may allocate through auctioning.

(e) Subparagraphs (a) through (d) apply to the following tariff items: 1511.10.01; 1511.90.99 and 1513.29.99.

APPENDIX A-2

COUNTRY SPECIFIC ALLOCATION FOR SUGAR OF MEXICO

1. CSA-MX: Country Specific Allocation for Sugar

(a) Mexico shall grant tariff concessions for sugar under this Agreement only when it requires to import sugar to address its domestic demand through unilateral MFN tariff rate quotas (TRQs). Otherwise, all sugar imports into Mexico under this Agreement shall be subject to the rate of customs duty applied under the WTO Agreement.

(b) The Country Specific Allocation (CSA) set out in this Appendix is designated in the Tariff Schedule of Mexico to Annex 2-D (Tariff Commitments) as "CSA-MX".

(c) Mexico shall grant to Australia 7 per cent of any unilateral MFN TRQ Mexico may open, subject to the following conditions:

(i) The CSA allocated to Australia shall be imported duty free.

(ii) Mexico shall allocate this CSA to Australia through auctioning in accordance with Mexico's internal legal procedures.

(iii) Australia shall notify Mexico if it cannot fulfill the CSA, so that Mexico can reallocate it to other countries.

(iv) Australia may export to Mexico under the unilateral MFN TRQ during the two months following the date on which the respective certificates are issued. Nevertheless, in cases where the validity of the unilateral sugar TRQ under an MFN basis exceeds four months, Australia shall have three months to export to Mexico from the date that quota certificate is issued.

(v) To be eligible for the tariff preference established in subparagraph (i), the sugar from Australia shall comply with the applicable product specific rule of origin set out in Annex 3-D (Product-Specific Rules of Origin).

(vi) Any amount of CSA not used by Australia shall not be accumulated for subsequent periods.

(vii) For the amount that exceeds the quantity of the CSA allocated to Australia, the conditions established for the unilateral MFN TRQ shall apply, without prejudice to the rights and obligations of this country under the WTO.

(viii) For the purposes of this CSA, the scope of "sugar" covers those goods classified under heading 17.01, and tariff items 1702.90.01, 1806.10.01 and 2106.90.05. Mexico shall indicate in its official gazette, as appropriate, the specific tariff items subject to the CSA.

New Zealand

ANNEX 2-D

TARIFF SCHEDULE OF NEW ZEALAND GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the Working Tariff Document of New Zealand, and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the Working Tariff Document of New Zealand. To the extent that provisions of this Schedule are identical to the corresponding provisions of the Working Tariff Document of New Zealand, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the Working Tariff Document of New Zealand.

2. The base rates of duty set out in this Schedule reflect New Zealand's Most-Favoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded to the nearest hundredth of a New Zealand dollar.

4. The following staging categories shall apply to the elimination of customs duties by New Zealand pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B2 shall be eliminated in two annual stages, and these goods shall be duty-free from January 1 of year 2;

(c) customs duties on originating goods provided for in the items in staging category B5 shall be eliminated in five annual stages, and these goods shall be duty-free from January 1 of year 5;

(d) customs duties on originating goods provided for in the items in staging category B7 shall be eliminated in seven annual stages, and these goods shall be duty-free from January 1 of year 7; and

(e) originating goods provided for in the items in staging category NZ Parts shall receive the same tariff treatment as goods provided for in the corresponding non-parts tariff items.

5. The annual stages referred to in paragraph 4 for the elimination of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

6. (a) Upon request from Japan, New Zealand and Japan shall consult to consider New Zealand's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule no sooner than seven years after the date of entry into force of this Agreement for New Zealand and Japan, with a view to increasing market access.

(b) Following completion of applicable legal procedures by New Zealand and another State or customs territory necessary for entry into force of an international agreement, or an amendment thereto, granting preferential market access by New Zealand to that other State or customs territory, and on request of Japan, New Zealand and Japan shall consult to consider New Zealand's commitments to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule, with a view to providing to the originating goods treatment equivalent to that provided to goods classified in the same tariff lines under the international agreement. New Zealand and Japan shall consult no later than one month after the date of the request, unless New Zealand and Japan agree otherwise.

(c) For greater certainty, nothing in this paragraph shall be construed to affect the rights or obligations of New Zealand under any other provision of this Agreement.

TARIFF SCHEDULE OF NEW ZEALAND (HS 2012)

ANNEX 2-D

TARIFF SCHEDULE OF PERU GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the Customs Tariff Schedule of Peru (Arancel de Aduanas de la República del Perú (AAPERU)), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the AAPERU. To the extent that provisions of this Schedule are identical to the corresponding provisions of the AAPERU, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the AAPERU.

2. The base rates of duty set out in this Schedule reflect Peru's Most Favoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest 0.001 of the official monetary unit of Peru.

4. The following staging categories shall apply to the elimination of customs duties by Peru pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B6 shall be eliminated in six annual stages, and these goods shall be duty-free effective January 1 of year 6;

(c) customs duties on originating goods provided for in the items in staging category B11 shall be eliminated in 11 annual stages, and these goods shall be duty-free effective January 1 of year 11;

(d) customs duties on originating goods provided for in the items in staging category B13 shall be eliminated in 13 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(e) customs duties on originating goods provided for in the items in staging category B16 shall be eliminated in 16 annual stages, and these goods shall be duty-free effective January 1 of year 16;

(f) customs duties on originating goods provided for in the items in staging category PE-R1 shall be reduced as follows:

(i) the ad valorem duty shall be eliminated entirely on the date of entry into force of this Agreement for Peru; and

(ii) the specific duty derived from the application of the Peruvian Price Band System established in the D.S. N° 115-2001-EF and its amendments, any future modification or any succeeding system shall be excluded from any tariff elimination; and

(g) customs duties on originating goods provided for in the items in staging category PE-R2 shall be reduced as follows:

(i) the ad valorem duty shall be eliminated in six annual stages, and these goods shall be ad valorem duty-free effective January 1 of year 6; and

5. The annual stages referred to in paragraph 4 for the elimination of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

TARIFF SCHEDULE OF PERU (HS2012)

Singapore

ANNEX 2-D

TARIFF SCHEDULE OF SINGAPORE GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the Singapore Trade Classification, Customs and Excise Duties (STCCED), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the STCCED. To the extent that provisions of this Schedule are identical to the corresponding provisions of the STCCED, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the STCCED.

2. The base rates of duty set out in this Schedule reflect Singapore's MostFavoured-Nation (MFN) rates of duty in effect on January 1, 2010.

3. Pursuant to Article 2.4.2 (Elimination of Customs Duty), customs duties on originating goods provided for in the items in staging category EIF shall be eliminated entirely, and these goods shall be duty-free on the date of entry into force of this Agreement for Singapore.

TARIFF SCHEDULE OF SINGAPORE (HS2012)

United States

ANNEX 2-D

TARIFF SCHEDULE OF THE UNITED STATES GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of the Harmonized Tariff Schedule of the United States (HTSUS), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the HTSUS. To the extent that provisions of this Schedule are identical to the corresponding provisions of the HTSUS, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the HTSUS.

2. Except as otherwise provided in this Schedule, the base rates of duty set out in this Schedule reflect the United States' Most-Favoured-Nation (MFN) rates of duty in effect on January 1, 2010. For items identified with an asterisk (*), the applicable base rates of duty are those set forth in this Schedule.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest tenth of one U.S. cent.

4. The following staging categories shall apply to the elimination or reduction of customs duties by the United States pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B3 shall be eliminated in three annual stages, and these goods shall be duty-free effective January 1 of year 3;

(c) customs duties on originating goods provided for in the items in staging category B4 shall be eliminated in four annual stages, and these goods shall be duty-free effective January 1 of year 4;

(d) customs duties on originating goods provided for in the items in staging category B5 shall be eliminated in five annual stages, and these goods shall be duty-free effective January 1 of year 5;

(e) customs duties on originating goods provided for in the items in staging category B6 shall be eliminated in six annual stages, and these goods shall be duty-free effective January 1 of year 6;

(f) customs duties on originating goods provided for in the items in staging category B7 shall be eliminated in seven annual stages, and these goods shall be duty-free effective January 1 of year 7;

(g) customs duties on originating goods provided for in the items in staging category B8 shall be eliminated in eight annual stages, and these goods shall be duty-free effective January 1 of year 8;

(h) customs duties on originating goods provided for in the items in staging category B10 shall be eliminated in 10 annual stages, and these goods shall be duty-free effective January 1 of year 10;

(i) customs duties on originating goods provided for in the items in staging category B11 shall be eliminated in 11 annual stages, and these goods shall be duty-free effective January 1 of year 11;

(j) customs duties on originating goods provided for in the items in staging category B12 shall be eliminated in 12 annual stages, and these goods shall be duty-free effective January 1 of year 12;

(k) customs duties on originating goods provided for in the items in staging category B15 shall be eliminated in 15 annual stages, and these goods shall be duty-free effective January 1 of year 15;

(l) customs duties on originating goods provided for in the items in staging category B16 shall be eliminated in 16 annual stages, and these goods shall be duty-free effective January 1 of year 16;

(m) customs duties on originating goods provided for in the items in staging category B20 shall be eliminated in 20 annual stages, and these goods shall be duty-free effective January 1 of year 20;

(n) customs duties on originating goods provided for in the items in staging category US1 shall be reduced by 40 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 3. On January 1 of year 4, these duties shall be reduced by an additional five per cent of the base rate. On January 1 of year 5, these duties shall be reduced by an additional five per cent of the base rate, and they shall remain at the resulting rates until December 31 of year 11. These goods shall be duty-free effective January 1 of year 12;

(o) customs duties on originating goods provided for in the items in staging category US2 shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 11. These goods shall be duty-free effective January 1 of year 12;

(p) customs duties on originating goods provided for in the items in staging category US3 shall be reduced by 55 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 11. These goods shall be duty-free effective January 1 of year 12;

(q) customs duties on originating goods provided for in the items in staging category US4 shall remain at base rates until December 31 of year 8. Beginning on January 1 of year 9, these duties shall be eliminated in four annual stages. These goods shall be duty-free effective January 1 of year 12;

(r) customs duties on originating goods provided for in the items in staging category US5 shall remain at base rates until December 31 of year 4. These goods shall be duty-free effective January 1 of year 5;

(s) customs duties on originating goods provided for in the items in staging category US6 shall be reduced by 35 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(t) customs duties on originating goods provided for in the items in staging category US7 shall be reduced by 35 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 12. These goods shall be duty-free effective January 1 of year 13;

(u) customs duties on originating goods provided for in the items in staging category US8 shall be reduced by 35 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 5. On January 1 of year 6, these duties shall be reduced by an additional 15 per cent of the base rate, and they shall remain at the resulting rates until December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(v) customs duties on originating goods provided for in the items in staging category US9 shall be reduced by 35 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 6. On January 1 of year 7, these duties shall be reduced by an additional 15 per cent of the base rate, and they shall remain at the resulting rates until December 31 of year 12. These goods shall be duty-free effective January 1 of year 13;

(w) customs duties on originating goods provided for in the items in staging category US10 shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(x) customs duties on originating goods provided for in the items in staging category US11 shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for the United States and shall remain at the resulting rates until December 31 of year 12. These goods shall be duty-free effective January 1 of year 13;

(y) customs duties on originating goods provided for in the items in staging category US12 shall be reduced to five per cent ad valorem on the date of entry into force of this Agreement for the United States and shall remain at that rate until December 31 of year 3. On January 1 of year 4, these duties shall be reduced to four per cent ad valorem, and they shall remain at that rate until December 31 of year 6. On January 1 of year 7, these duties shall be reduced to three per cent ad valorem, and they shall remain at that rate until December 31 of year 8. On January 1 of year 9, these duties shall be reduced to two per cent ad valorem, and they shall remain at that rate until December 31 of year 10. On January 1 of year 11, these duties shall be reduced to 0.5 per cent ad valorem, and they shall remain at that rate until December 31 of year 11. These goods shall be duty-free effective January 1 of year 12;

(z) customs duties on originating goods provided for in the items in staging category US13 shall remain at base rates until December 31 of 2021. These goods shall be duty-free effective January 1 of 2022;

(aa) customs duties on originating goods provided for in the items in staging category US14 shall remain at base rates until December 31 of year 6. These goods shall be duty-free effective January 1 of year 7;

(bb) customs duties on originating goods provided for in the items in staging category US15 shall remain at base rates until December 31 of year 14. On January 1 of year 15, these duties shall be reduced to 2.25 per cent ad valorem, and they shall remain at that rate until December 31 of year 19. On January 1 of year 20, these duties shall be reduced to 1.25 per cent ad valorem, and they shall remain at that rate until December 31 of year 21. On January 1 of year 22, these duties shall be reduced to 0.5 per cent ad valorem, and they shall remain at that rate until December 31 of year 24. These goods shall be duty-free effective January 1 of year 25;

(cc) customs duties on originating goods provided for in the items in staging category US16 shall remain at base rates until December 31 of year 14. On January 1 of year 15, these duties shall be reduced to 3.6 per cent ad valorem, and they shall remain at that rate until December 31 of year 19. On January 1 of year 20, these duties shall be reduced to 2.0 per cent ad valorem, and they shall remain at that rate until December 31 of year 21. On January 1 of year 22, these duties shall be reduced to 0.8 per cent ad valorem, and they shall remain at that rate until December 31 of year 24. These goods shall be duty-free effective January 1 of year 25;

(dd) customs duties on originating goods provided for in the items in staging category US17 shall remain at base rates until December 31 of year 29. These goods shall be duty-free effective January 1 of year 30;

(ee) customs duties on originating goods provided for in the items in staging category US18 shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for the United States. Beginning on January 1 of year 2, the resulting duties shall be eliminated in 14 annual stages, and these goods shall be duty free effective January 1 of year 15;

(ff) customs duties on originating goods provided for in the items in staging category US19 shall be reduced by 20 per cent of the base rate on the date of entry into force of this Agreement for the United States. Beginning on January 1 of year 2, the resulting duties shall be eliminated in 19 annual stages, and these goods shall be duty free effective January 1 of year 20;

(gg) customs duties on originating goods provided for in the items in staging category US20 shall be no higher than the rate applicable under the staging category set out for that item in the Schedule of the United States to Annex 2-B of the United States – Australia Free Trade Agreement, done at Washington, District of Columbia, May 18, 2004;

(hh) customs duties on originating goods provided for in the items in staging category US21 shall be no higher than the rate applicable under the staging category set out for that item in the Schedule of the United States to Annex 2.3 of the United States – Peru Trade Promotion Agreement, done at Washington, District of Columbia, April 12, 2006;

(ii) customs duties on originating goods provided for in the items in staging category US22 shall be reduced by 50 per cent of the base rate on the date of entry into force of this Agreement for the United States. Beginning on January 1 of year 2, the resulting duties shall be eliminated in nine annual stages, and these goods shall be duty free effective January 1 of year 10;

(jj) customs duties on originating goods provided for in the items in staging category US23 shall be reduced by 33 per cent of the base rate on the date of entry into force of this Agreement for the United States. Beginning on January 1 of year 2, the resulting duties shall be eliminated in 19 annual stages, and these goods shall be duty free effective January 1 of year 20;

(kk) customs duties on originating goods provided for in the items in staging category US24 shall be reduced by 20 per cent of the base rate on the date of entry into force of this Agreement for the United States. Beginning on January 1 of year 2, the resulting duties shall be eliminated in 29 annual stages, and these goods shall be duty free effective January 1 of year 30;

(ll) customs duties on originating goods provided for in the items in staging category US25 shall be eliminated entirely and these goods shall be duty-free on the date of entry into force of this Agreement for the United States. For goods in tariff items 9812.00.20, 9812.00.40, 9813.00.05, 9813.00.10, 9813.00.15, 9813.00.20, 9813.00.25, 9813.00.30, 9813.00.35, 9813.00.40, 9813.00.45, 9813.00.50, 9813.00.55, 9813.00.60, 9813.00.70, 9813.00.75 and 9814.00.50, duty-free means free without bond; and

(mm) customs duties on originating goods provided for in the items in staging category TRQ shall be governed by the terms of the TRQ applicable to that tariff item, as outlined in Appendix A (Tariff Rate Quotas of the United States) to this Schedule of the United States to Annex 2-D.

5. Originating goods provided for in the items marked with the designation SG-US[x] in this Schedule shall be subject to the corresponding country-specific safeguard measure set forth in Appendix B (Agricultural Safeguard Measures of the United States) to this Schedule.

6. Appendix C shall apply when the United States applies different preferential tariff treatment to other Parties for an originating good specified in Appendix C (Tariff Differentials of the United States) to this Schedule.

7. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

8. The staging of tariff elimination and reduction provided for in this Schedule with respect to originating goods of Japan is premised on entry into force of the Agreement for both Japan and the United States between January 1 and March 31 of a given year. If the Agreement will enter into force between April 1 and December 31 of a given year, the United States will consult with Japan regarding the implementation of the staging categories in this Schedule.

9. (a) Upon request from Japan, the United States and Japan shall consult to consider the commitments of the United States to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule no sooner than seven years after the date of entry into force of this Agreement for the United States and Japan, with a view to increasing market access.

(b) Following completion of applicable legal procedures by the United States and another State or customs territory necessary for entry into force of an international agreement, or an amendment thereto, granting preferential market access by the United States to that other State or customs territory, if requested by Japan, the United States and Japan shall consult to consider the commitments of the United States to Japan regarding treatment of originating goods related to the application of customs duties, tariff rate quotas and safeguards in this Schedule, with a view to providing to the originating goods treatment equivalent to that provided to goods classified in the same tariff lines under the international agreement. The United States and Japan shall consult no later than one month after the date of the request, unless the United States and Japan agree otherwise.

(c) For greater certainty, nothing in this paragraph shall be construed to affect the rights or obligations of the United States under any other provision of this Agreement.

TARIFF SCHEDULE OF THE UNITED STATES (HS 2012)

APPENDIX A

TARIFF RATE QUOTAS OF THE UNITED STATES

1. This Appendix sets out modifications to the Harmonized Tariff Schedule of the United States (HTSUS) that reflect the tariff rate quotas (TRQs) that the United States shall apply to certain originating goods under this Agreement. In particular, originating goods of Parties included under this Appendix shall be subject to the rates of duty set out in this Appendix in lieu of the rates of duty specified in Chapters 1 through 97 of the HTSUS. Notwithstanding any other provision of the HTSUS, originating goods of Parties in the quantities described in this Appendix shall be permitted entry into the territory of the United States as provided in this Appendix. Furthermore, except as provided below, any quantity of originating goods imported from a Party under a TRQ provided for in this Appendix shall not be counted toward the in-quota quantity of any TRQ provided for such goods under the United States' WTO tariff Schedule or any other trade agreement.

2. Except as provided below, the United States shall administer all TRQs provided for in this Agreement and set out in this Appendix on a first-come, first served basis.

3. The product or products covered by each TRQ set out below are informally described in the title to the paragraph setting out the TRQ. These titles are included solely to assist readers in understanding this Appendix and shall not alter or supersede the coverage for each TRQ established by reference to the relevant Table 1 provisions. For the purposes of this Appendix, the term "metric tonnes" shall be abbreviated as "MT".

4. Each TRQ set out in this Appendix shall apply to an aggregate quantity of originating goods of the Party identified in the first subparagraph of the paragraph setting out the TRQ. For the purposes of this Appendix, an originating good shall, except as otherwise specified in the paragraph setting out a TRQ, be deemed to be of the Party identified in the first subparagraph of the paragraph setting out the TRQ if the United States would apply for that good the rate of customs duty for the originating good of that Party pursuant to:

(a) paragraph 8 in Section B (Tariff Differentials) of Annex 2-D (Tariff Commitments), if the relevant tariff item is not listed in Appendix C (Tariff Differentials) to the Schedule of the United States to Annex 2-D (Tariff Commitments); or

(b) paragraph 1 or paragraph 2(a), as applicable, of Appendix C (Tariff Differentials) to the Schedule of the United States to Annex 2-D (Tariff Commitments), if the relevant tariff item is listed in that Appendix.

5. CSQ-US1: Raw Sugar – Country-Specific Tariff-Rate Quota for Australia

(a) This paragraph sets out a country-specific TRQ for the originating goods of Australia described in subparagraph (e). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ US1".

(b) Except as provided in subparagraph (c), the aggregate quantity of originating goods of Australia described in subparagraph (e) that shall be permitted to enter free of duty in each year is 60,500 MT. This quantity shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of Australia is in effect for the goods.

(c) In any year in which the United States Secretary of Agriculture (the Secretary) makes a determination to permit the importation into the United States at in-quota tariff rates of additional quantities of raw sugar above the quantities made available at those rates pursuant to its commitments under the WTO Agreement and other trade agreements, including this Agreement, ("additional in-quota rate imports of raw sugar"), the quantity set out for that year in subparagraph (b) shall be increased by an amount equal to 14.7 per cent of the quantity of additional in-quota rate imports of raw sugar that the Secretary determines to permit to enter into the United States in that year. Any increase pursuant to this subparagraph of a quantity set out in subparagraph (b) shall not take effect until the date on which the additional in-quota rate imports of raw sugar are permitted entry into the United States. Nothing in this paragraph shall alter Australia's rights under the WTO Agreement with respect to any increase by the United States of the quantities of raw sugar permitted to be imported above the quantities made available at in-quota tariff rates pursuant to its commitments under the WTO Agreement and other trade agreements, including this Agreement.

(d) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c) shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG17011250, AG17011350 and AG17011450.

6. CSQ-US2: Sugar and Sugar-Containing Products – Country-Specific Tariff-Rate Quota for Australia

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Australia described in subparagraph (d). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US2".

(b) The aggregate quantity of originating goods of Australia described in subparagraph (d) that shall be permitted to enter free of duty in each year is 4,500 MT.

The above quantity shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of Australia is in effect for the goods.

(c) Goods entered in aggregate quantities in excess of the quantity listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG17011250, AG17011350, AG17011450, AG17019130, AG17019148, AG17019158, AG17019950, AG17022028, AG17023028, AG17024028, AG17026028, AG17029020, AG17029058, AG17029068, AG17049068, AG17049078, AG18061015, AG18061028, AG18061038, AG18061055, AG18061075, AG18062073, AG18062077, AG18062094, AG18062098, AG18069039, AG18069049, AG18069059, AG19012025, AG19012035, AG19012060, AG19012070, AG19019054, AG19019058, AG21011238, AG21011248, AG21011258, AG21012038, AG21012048, AG21012058, AG21039078, AG21069046, AG21069072, AG21069076, AG21069080, AG21069091, AG21069094 and AG21069097.

7. CSQ-US3: Creams and Ice Cream – Country-Specific Tariff-Rate Quota for Australia

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Australia described in subparagraph (f). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US3".

(b) In the year of entry into force of this Agreement as between the United States and Australia, the aggregate quantity of originating goods of Australia described in subparagraph (f) that shall be permitted to enter free of duty shall be equal to the volume permitted duty-free entry for that year under paragraph (4) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement, reduced by 3,880,500 litres.

In each year thereafter, the quantity shall increase at a compounded annual growth rate of six per cent.

The above quantities shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of Australia is in effect for the goods.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraph (4) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) With respect to goods described in subparagraph (f) entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c):

(i) for those goods provided for in Table 1 provision AG21050020, duties shall be removed in accordance with the provisions of staging category US18 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments); and

(ii) goods provided for in any other Table 1 provision shall continue to receive MFN tariff treatment.

(e) Starting on January 1 of year 15, originating goods of Australia provided for in Table 1 provision AG21050020 shall not count towards the quantities specified in subparagraph (b).

(f) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04014025, AG04015025, AG04039016 and AG21050020.

(g) Subparagraph (e) applies to the following Table 1 provision: AG21050020.

8. CSQ-US4: Condensed Milk – Country-Specific Tariff-Rate Quota for Australia

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Australia described in subparagraph (e). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US4".

(b) In the year of entry into force of this Agreement as between the United States and Australia, the aggregate quantity of originating goods of Australia described in subparagraph (e) that shall be permitted to enter free of duty shall be equal to the volume permitted duty-free entry for that year under paragraph (6) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement, reduced by 5,000 MT.

In each year thereafter, the quantity shall increase at a compounded annual growth rate of six per cent.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraph (6) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c) shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04029170, AG04029190, AG04029945 and AG04029955.

9. CSQ-US5: Butter – Country-Specific Tariff-Rate Quota for Australia

(b) The aggregate quantity of originating goods of Australia described in subparagraph (e) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in 2022, the quantity shall increase at a compounded annual growth rate of three per cent.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraph (7) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c) shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04015075, AG04022190, AG04039065, AG04039078, AG04051020, AG04052030, AG04059020, AG21069026 and AG21069036.

10. CSQ-US6: Milk Powders – Country-Specific Tariff-Rate Quota for Australia

(b) In the year of entry into force of this Agreement as between the United States and Australia, the aggregate quantity of originating goods of Australia described in subparagraph (e) that shall be permitted to enter free of duty shall be equal to the combined volumes permitted duty-free entry for that year under paragraphs (8) and (10) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

In each year thereafter, the quantity shall increase at a compounded annual growth rate of two per cent.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraphs (8) and (10) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) Duties on goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c) shall be removed in accordance with the provisions of staging category US24 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments).

(e) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04021050, AG04022125, AG04022150, AG04039045, AG04039055, AG04041090, AG23099028 and AG23099048.

11. CSQ-US7: Other Dairy Products – Country-Specific Tariff-Rate Quota for Australia

(b) The aggregate quantity of originating goods of Australia described in subparagraph (f) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in 2022, the quantity shall increase at a compounded annual growth rate of six per cent.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraph (12) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) With respect to goods described in subparagraph (f) entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c):

(i) for those goods provided for in Table 1 provisions AG19011030, AG19011040, AG19011075 and AG19011085, duties shall be removed in accordance with the provisions of staging category B15 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments); and

(ii) goods provided for in any other Table 1 provision shall continue to receive MFN tariff treatment.

(e) Starting on January 1 of year 15, originating goods of Australia provided for in Table 1 provisions AG19011030, AG19011040, AG19011075 and AG19011085 shall not count towards the quantities specified in subparagraph (b).

(f) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04022950, AG04029990, AG04031050, AG04039095, AG04041015, AG04049050, AG04052070, AG15179060, AG17049058, AG18062026, AG18062028, AG18062036, AG18062038, AG18062082, AG18062083, AG18062087, AG18062089, AG18063206, AG18063208, AG18063216, AG18063218, AG18063270, AG18063280, AG18069008, AG18069010, AG18069018, AG18069020, AG18069028, AG18069030, AG19011030, AG19011040, AG19011075, AG19011085, AG19012015, AG19012050, AG19019043, AG19019047, AG21050040, AG21069009, AG21069066, AG21069087, and AG22029028.

(g) Subparagraph (e) applies to the following Table 1 provisions: AG19011030, AG19011040, AG19011075 and AG19011085.

12. CSQ-US8: American and Cheddar Cheeses – Country-Specific Tariff-Rate Quota for Australia

(b) In the year of entry into force of this Agreement as between the United States and Australia, the aggregate quantity of originating goods of Australia described in subparagraph (e) that shall be permitted to enter free of duty shall be equal to the combined volumes permitted duty-free entry for that year under paragraphs (14) and (16) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States Australia Free Trade Agreement, plus 4,500 MT.

In each year thereafter, the quantity shall increase at a compounded annual growth rate of three per cent.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraphs (14) and (16) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c) shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04061028, AG04061038, AG04062033, AG04062039, AG04062067, AG04062071, AG04063028, AG04063038, AG04063067, AG04063071, AG04069012, AG04069054, AG04069078 and AG04069084.

13. CSQ-US9: Swiss-type, European-type and Other Cheeses – Country Specific Tariff-Rate Quota for Australia

(b) In the year of entry into force of this Agreement as between the United States and Australia, the aggregate quantity of originating goods of Australia described in subparagraph (f) that shall be permitted to enter free of duty shall be equal to the combined volumes permitted duty-free entry for that year under paragraphs (18), (19) and (21) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States Australia Free Trade Agreement, plus 4,500 MT.

In each year thereafter, the quantity shall increase at a compounded annual growth rate of five per cent.

(c) In the year of entry into force of this Agreement as between the United States and Australia, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during the year under paragraphs (18), (19) and (21) of Annex I to the General Notes to the Tariff Schedule of the United States in Annex 2-B to the United States-Australia Free Trade Agreement.

(d) With respect to goods described in subparagraph (f) entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) and (c):

(i) for those goods provided for in Table 1 provision AG04069048, duties shall be removed in accordance with the provisions of staging category US19 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments); and

(ii) goods provided for in any other Table 1 provision shall continue to receive MFN tariff treatment.

(e) Starting on January 1 of year 20, originating goods of Australia provided for in Table 1 provision AG04069048 shall not count towards the quantities specified in subparagraph (b).

(f) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04061008, AG04061018, AG04061048, AG04061058, AG04061068, AG04061078, AG04061088, AG04062028, AG04062048, AG04062053, AG04062063, AG04062075, AG04062079, AG04062083, AG04062087, AG04062091, AG04063018, AG04063048, AG04063053, AG04063063, AG04063075, AG04063079, AG04063083, AG04063087, AG04063091, AG04064070, AG04069018, AG04069032, AG04069037, AG04069042, AG04069048, AG04069068, AG04069074, AG04069088, AG04069092, AG04069094, AG04069097 and AG19019036.

ANNEX 2-D – APPENDIX A – UNITED STATES – 11

(g) Subparagraph (e) applies to the following Table 1 provision: AG04069048.

14. CSQ-US10: Cheese – Country-Specific Tariff-Rate Quota for Canada

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Canada described in subparagraph (f). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US10".

(b) Subject to subparagraph (c), the aggregate quantity of originating goods of Canada described in subparagraph (f) that shall be permitted to enter free of duty in a particular year is specified in the Total Quantity column below, and the reserved portion of that quantity is specified in the Reserved Portion of the Total Quantity column below:

Starting in year 19, the Total Quantity shall remain at 20,486 MT per year and the Reserved Portion of the Total Quantity shall remain at 11,267 MT per year.

(c) In each year, the quantity specified in subparagraph (b) as the Reserved Portion of the Total Quantity shall only be available for the importation of goods in package sizes of 40 pounds or more. No package size limitations shall apply to the remainder of the Total Quantity specified in subparagraph (b).

(d) Except as provided in subparagraph (e), goods entered in aggregate quantities in excess of the total quantities listed in subparagraph (b), and goods in package sizes of less than 40 pounds entered in aggregate quantities in excess of the unreserved portions of those total quantities, shall continue to receive MFN tariff treatment.

(e) Duties on originating goods of Canada described in subparagraph (g) in pieces weighing no more than 10 kilograms and having a customs value in excess of 7.00 U.S. dollars per kilogram shall be removed in accordance with the provisions of staging category B10 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments). Starting on January 1 of year 10, originating goods of Canada described in subparagraph (g) in pieces weighing no more than 10 kilograms and having a customs value in excess of 7.00 U.S. dollars per kilogram entered free of duty into the United States shall not count towards the quantities specified in subparagraph (b).

(f) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04061008, AG04061018, AG04061028, AG04061038, AG04061048, AG04061058, AG04061068, AG04061078, AG04061088, AG04062028, AG04062033, AG04062039, AG04062048, AG04062053, AG04062063, AG04062067, AG04062071, AG04062075, AG04062079, AG04062083, AG04062087, AG04062091, AG04063018, AG04063028, AG04063038, AG04063048, AG04063053, AG04063063, AG04063067, AG04063071, AG04063075, AG04063079, AG04063083, AG04063087, AG04063091, AG04064070, AG04069012, AG04069018, AG04069032, AG04069037, AG04069042, AG04069048, AG04069054, AG04069068, AG04069074, AG04069078, AG04069084, AG04069088, AG04069092, AG04069094, AG04069097 and AG19019036.

(g) Subparagraph (e) applies to the following Table 1 provision: AG04069097.

15. CSQ-US11: Skim Milk Powder – Country-Specific Tariff-Rate Quota for Canada

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Canada described in subparagraph (d). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US11".

(b) The aggregate quantity of originating goods of Canada described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 19, the quantity shall remain at 17,622 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04021050 and AG04022125.

16. CSQ-US12: Whole Milk Powder – Country-Specific Tariff-Rate Quota for Canada

(b) The aggregate quantity of originating goods of Canada described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 19, the quantity shall remain at 4,552 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04022150, AG04022950, AG23099028, and AG23099048.

17. CSQ-US13: Dried Yogurt, Sour Cream, Whey, and Products of Milk Constituents – Country-Specific Tariff-Rate Quota for Canada

(b) The aggregate quantity of originating goods of Canada described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 19, the quantity shall remain at 14,226 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04031050, AG04039045, AG04039055, AG04039095, AG04041015, AG04041090 and AG04049050.

18. CSQ-US14: Concentrated Milk – Country-Specific Tariff-Rate Quota for Canada

(b) The aggregate quantity of originating goods of Canada described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 19, the quantity shall remain at 2,587 MT per year.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04029170, AG04029190, AG04029945, AG04029955 and AG04029990.

19. CSQ-US15: Cream, Sour Cream, Ice Cream, and Milk Beverages – Country-Specific Tariff-Rate Quota for Canada

(b) The aggregate quantity of originating goods of Canada described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 19, the quantity shall remain at 9,673,793 litres per year.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04014025, AG04015025, AG04039016, AG21050020 and AG22029028.

20. CSQ-US16: Butter and Butter Substitutes – Country-Specific Tariff Rate Quota for Canada

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Canada described in subparagraph (e). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US16".

(b) The aggregate quantity of originating goods of Canada described in subparagraph (e) that shall be permitted to enter free of duty in a particular year is specified in the Total Quantity column below, and the reserved portion of that quantity is specified in the Reserved Portion of the Total Quantity column below:

Starting in year 19, the Total Quantity shall remain at 5,121 MT per year and the Reserved Portion of the Total Quantity shall remain at 4,353 MT per year.

(c) In each year, the quantities specified in subparagraph (b) as the Reserved Portion of the Total Quantity shall only be available for the importation of goods in package sizes of 55 pounds or more. No package size limitations shall apply to the remainder of the Total Quantity specified in subparagraph (b).

(d) Goods entered in aggregate quantities in excess of the total quantities listed in subparagraph (b), and goods in package sizes of less than 55 pounds entered in aggregate quantities in excess of the unreserved portions of those total quantities, shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table 1 provisions: AG04015075, AG04022190, AG04039065, AG04039078, AG04051020, AG04052030, AG04052070, AG04059020, AG21069026 and AG21069036.

21. CSQ-US17: Other Dairy Products – Country-Specific Tariff-Rate Quota for Canada

(b) The aggregate quantity of originating goods of Canada described in subparagraph (e) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 19, the quantity shall remain at 8,536 MT per year.

(c) With respect to goods described in subparagraph (e) entered in aggregate quantities in excess of the quantities listed in subparagraph (b):

(i) for those goods provided for in Table 1 provision AG15179060, duties shall be removed in accordance with the provisions of staging category B5 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments); and

(ii) goods provided for in any other Table 1 provision shall continue to receive MFN tariff treatment.

(d) Starting on January 1 of year 5, originating goods of Canada provided for in Table 1 provision AG15179060 shall not count towards the quantities specified in subparagraph (b).

(e) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG15179060, AG17049058, AG18062026, AG18062028, AG18062036, AG18062038, AG18062082, AG18062083, AG18062087, AG18062089, AG18063206, AG18063208, AG18063216, AG18063218, AG18063270, AG18063280, AG18069008, AG18069010, AG18069018, AG18069020, AG18069028, AG18069030, AG19011030, AG19011040, AG19011075, AG19011085, AG19012015, AG19012050, AG19019043, AG19019047, AG21050040, AG21069009, AG21069066, and AG21069087.

(f) Subparagraph (d) applies to the following Table 1 provision: AG15179060.

22. CSQ-US18: Sugar – Country-Specific Tariff-Rate Quota for Canada

(b) The aggregate quantity of originating goods of Canada described in subparagraph (e) that shall be permitted to enter free of duty in each year is 9,600 MT. However, no quantity shall be permitted to enter free of duty unless wholly obtained from sugar beets produced in Canada.

(c) In any year in which the United States Secretary of Agriculture (the Secretary) makes a determination to permit the importation into the United States at in-quota tariff rates of additional quantities of refined sugar (other than specialty sugar) above the quantities made available at those rates pursuant to its commitments under the WTO Agreement and other trade agreements, including this Agreement, (additional in-quota rate imports of refined sugar), the quantity set out for that year in subparagraph (b) shall be increased by an amount equal to 20 per cent of the quantity of additional in quota rate imports of refined sugar that the Secretary determines to permit to enter into the United States in that year. Any increase pursuant to this subparagraph of a quantity set out in subparagraph (b) shall not take effect until the date on which the additional in quota rate imports of refined sugar are permitted entry into the United States. Refined sugar imported pursuant to this subparagraph can be made from non-originating raw sugar. Nothing in this paragraph shall alter Canada's rights under the WTO Agreement with respect to any increase by the United States of the quantities of refined sugar permitted to be imported above the quantities made available at in-quota tariff rates pursuant to its commitments under the WTO Agreement and other trade agreements, including this Agreement.

(d) Goods entered in aggregate quantities in excess of the quantities provided under subparagraph (b) and, except as provided in subparagraph (c), goods not wholly obtained from sugar beets produced in Canada, shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table I provisions: AG17011250, AG17011350, AG17011450, AG17019130, AG17019950, and AG17029020.

23. CSQ-US19: Sugar-Containing Products – Country-Specific Tariff Rate Quota for Canada

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Canada described in subparagraph (g). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US19".

(b) The aggregate quantity of originating goods of Canada described in subparagraph (g) that shall be permitted to enter free of duty in each year is 9,600 MT.

(c) In any year for which Canada has provided the United States with a written notification in accordance with the terms of subparagraph (d) of Canada's intent to require export certificates for the exportation of goods for import under this TRQ, the above quantity shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of Canada is in effect for the goods.

(d) Canada shall provide the United States with the notification referred to in subparagraph (c) at least 150 days prior to the start of each year in which Canada requires an export certificate for the exportation of goods for import under this TRQ. Canada shall provide the notification in writing to the U.S. Contact Point designated pursuant to Article 27.5 (Contact Points).

(e) Goods entered within the quantity listed in subparagraph (b) that are provided for in Table 1 provisions AG17019148, AG17019158, AG17022028, AG17023028, AG17024028, AG17026028, AG17029058, AG17029068, AG18061015, AG18061028, AG18061038, AG18061055, AG18061075, and AG21069046 can be made from sugar refined in Canada. Refined means a change to a good of HS subheading 1701.91 or 1701.99 from any other subheading.

(f) Goods entered in aggregate quantities in excess of the quantity listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(g) Subparagraphs (a) through (f) apply to the following Table I provisions: AG17019148, AG17019158, AG17022028, AG17023028, AG17024028, AG17026028, AG17029058, AG17029068, AG17049068, AG17049078, AG18061015, AG18061028, AG18061038, AG18061055, AG18061075, AG18062073, AG18062077, AG18062094, AG18062098, AG18069039, AG18069049, AG18069059, AG19012025, AG19012035, AG19012060, AG19012070, AG19019054, AG19019058, AG21011238, AG21011248, AG21011258, AG21012038, AG21012048, AG21012058, AG21039078, AG21069046, AG21069072, AG21069076, AG21069080, AG21069091, AG21069094 and AG21069097.

24. CSQ-US20: Sugar and Sugar-Containing Products – Country Specific Tariff-Rate Quota for Chile

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Chile described in subparagraph (f). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US20".

(b) In any year, duty-free tariff treatment for originating goods of Chile described in subparagraph (f) shall be accorded to a quantity of goods equal to the amount of Chile's trade surplus, by volume, from all sources for goods in the following subheadings: HS1701.11, HS1701.12, HS1701.91, HS1701.99, HS1702.20, HS1702.30, HS1702.40, HS1702.60, HS1702.90, HS1806.10 and HS2106.90, except that Chile's imports of originating goods of the United States under HS1702.40 and HS1702.60 shall not be included in the calculation of Chile's trade surplus. Chile's trade surplus will be calculated using the most recent annual data available.

(c) In the year of entry into force of this Agreement as between the United States and Chile, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during that year, but prior to entry into force of this Agreement as between the United States and Chile, under paragraph (9) of Annex 1 to the General Notes to the Tariff Schedule of the United States in Annex 3.3 to the United States – Chile Free Trade Agreement.

(d) Notwithstanding Article 2.30.4 (Allocation), upon entry into force of this Agreement as between the United States and Chile, and continuing for as long as this Agreement remains in force between the United States and Chile:

(i) Any quantity of goods imported into the United States under the TRQ set out in paragraph (9) of Annex 1 to the General Notes to the Tariff Schedule of the United States in Annex 3.3 to the United States – Chile Free Trade Agreement shall count towards both:

(A) the quantity of goods that may be imported under the TRQ set out in paragraph (9) of Annex 1 to the General Notes to the Tariff Schedule of the United States in Annex 3.3 to the United States – Chile Free Trade Agreement; and

(B) the quantity of goods that may be imported under this TRQ, and

(ii) any quantity of goods imported into the United States under this TRQ shall count towards both:

(A) the quantity of goods that may be imported under this TRQ; and

(B) the quantity of goods that may be imported under the TRQ set out in paragraph (9) of Annex 1 to the General Notes to the Tariff Schedule of the United States in Annex 3.3 to the United States – Chile Free Trade Agreement.

(e) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) through (d) shall receive MFN tariff treatment.

(f) Subparagraphs (a) through (e) apply to the following Table 1 provisions: AG17011250, AG17011350, AG17011450, AG17019130, AG17019148, AG17019158, AG17019950, AG17022028, AG17023028, AG17024028, AG17026028, AG17029020, AG17029058, AG17029068, AG17049068, AG17049078, AG18061028, AG18061038, AG18061055, AG18061075, AG19012060, AG19012070, AG19019054, AG19019058, AG21069046, AG21069076, AG21069080, AG21069094 and AG21069097.

25. CSQ-US21: Beef – Country-Specific Tariff-Rate Quota for Japan

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Japan described in subparagraph (d). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US21".

(b) The aggregate quantity of originating goods of Japan described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

(c) Duties on goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be removed in accordance with the provisions of staging category B15 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments).

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG02011050, AG02012080, AG02013080, AG02021050, AG02022080 and AG02023080.

26. CSQ-US22: Sugar and Sugar-Containing Products – Country Specific Tariff-Rate Quota for Japan

(b) The aggregate quantity of originating goods of Japan described in subparagraph (d) that shall be permitted to enter free of duty in each year is 100 MT.

(c) Goods entered in aggregate quantity in excess of the quantity listed in subparagraph (b) shall continue to receive MFN tariff treatment.

27. CSQ-US23: Sugar and Sugar-Containing Products – Country Specific Tariff-Rate Quota for Malaysia

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Malaysia described in subparagraph (d). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US23".

(b) The aggregate quantity of originating goods of Malaysia described in subparagraph (d) that shall be permitted to enter free of duty in each year is 500 MT.

(c) Goods entered in aggregate quantities in excess of the quantity listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table I provisions: AG17011250, AG17011350, AG17011450, AG17019130, AG17019148, AG17019158, AG17019950, AG17022028, AG17023028, AG17024028, AG17026028, AG17029020, AG17029058, AG17029068, AG17049068, AG17049078, AG18061055, AG18061075 and AG21069046.

28. CSQ-US24: Cheese – Country-Specific Tariff-Rate Quota for New Zealand

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of New Zealand described in subparagraph (e). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US24".

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (e) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 31, the quantity shall increase by 3 per cent per year, compounded annually. The above quantities shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of New Zealand is in effect for the goods.

(c) With respect to goods described in subparagraph (e) entered in aggregate quantities in excess of the quantities listed in subparagraph (b):

(i) for those goods provided for in Table 1 provision AG04069097, duties shall be removed in accordance with the provisions of staging category US23 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments); and

(ii) goods provided for in any other Table 1 provision shall continue to receive MFN tariff treatment.

(d) Starting on January 1 of year 20, originating goods of New Zealand provided for in Table 1 provision AG04069097 shall not count towards the quantities specified in subparagraph (b).

(e) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04061008, AG04061018, AG04061028, AG04061038, AG04061048, AG04061058, AG04061068, AG04061078, AG04061088, AG04062028, AG04062033, AG04062039, AG04062048, AG04062053, AG04062063, AG04062067, AG04062071, AG04062075, AG04062079, AG04062083, AG04062087, AG04062091, AG04063018, AG04063028, AG04063038, AG04063048, AG04063053, AG04063063, AG04063067, AG04063071, AG04063075, AG04063079, AG04063083, AG04063087, AG04063091, AG04064070, AG04069012, AG04069018, AG04069032, AG04069037, AG04069042, AG04069048, AG04069054, AG04069068, AG04069074, AG04069078, AG04069084, AG04069088, AG04069092, AG04069094, AG04069097 and AG19019036.

(f) Subparagraph (d) applies to the following Table 1 provision: AG04069097.

29. CSQ-US25: Skim Milk Powder – Country-Specific Tariff-Rate Quota for New Zealand

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of New Zealand described in subparagraph (d). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US25".

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

(c) Duties on goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be removed in accordance with the provisions of staging category B20 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments).

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04021050 and AG04022125.

30. CSQ-US26: Whole Milk Powder – Country-Specific Tariff-Rate Quota for New Zealand

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

(c) Duties on goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be removed in accordance with staging category US24 in the General Notes to the Schedule of the United States to Annex 2-D (Tariff Commitments).

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04022150, AG04039045, AG04039055, AG04041090, AG23099028 and AG23099048.

31. CSQ-US27: Concentrated Milk – Country-Specific Tariff-Rate Quota for New Zealand

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04029170, AG04029190, AG04029945 and AG04029955.

32. CSQ-US28: Creams – Country-Specific Tariff-Rate Quota for New Zealand

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 31, the quantity shall increase by 6 per cent per year, compounded annually. The above quantities shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of New Zealand is in effect for the goods.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04014025, AG04015025 and AG04039016.

33. CSQ-US29: Butter and Butter Substitutes – Country-Specific Tariff Rate Quota for New Zealand

(b) Subject to subparagraph (c), the aggregate quantity of originating goods of New Zealand described in subparagraph (e) that shall be permitted to enter free of duty in a particular year is specified below:

(c) Of the quantities listed in subparagraph (b), the following quantities shall be reserved exclusively for importation of the goods described in subparagraph (f):

(d) Goods entered in aggregate quantities in excess of the quantities specified pursuant to subparagraphs (b) and (c) shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a), (b) and (d) apply to the following Table 1 provisions: AG04015075, AG04022190, AG04039065, AG04039078, AG04051020, AG04052030, AG04059020, AG21069026 and AG21069036.

(f) Subparagraph (c) applies to the following Table 1 provision: AG04059020.

34. CSQ-US30: Organic Butter – Country-Specific Tariff-Rate Quota for New Zealand

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (e) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 31, the quantity shall increase by three per cent per year, compounded annually. The above quantities shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of New Zealand is in effect for the goods.

(c) The United States shall require that, in order to be eligible to be imported into the United States free of duty pursuant to this paragraph, a good be labeled as "organic" and meet the requirements set out in U.S. regulations to be sold, labeled, or represented as "organic" in the United States, including those requirements related to the certification of operations involved in the production or handling of the good.

(d) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(e) Subparagraphs (a) through (d) apply to the following Table 1 provision: AG04051020.

35. CSQ-US31: Other Dairy Products – Country-Specific Tariff-Rate Quota for New Zealand

(b) The aggregate quantity of originating goods of New Zealand described in subparagraph (d) that shall be permitted to enter free of duty in a particular year is specified below:

Starting in year 31, the quantity shall increase by five per cent per year, compounded annually. The above quantities shall only be eligible for duty-free treatment if the U.S. importer makes a declaration to U.S. Customs and Border Protection (Customs), in the form and manner determined by Customs, that a valid export certificate issued by the Government of New Zealand is in effect for the goods.

(c) Goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG04022950, AG04029990, AG04031050, AG04039095, AG04041015, AG04049050, AG04052070, AG15179060, AG17049058, AG18062026, AG18062028, AG18062036, AG18062038, AG18062082, AG18062083, AG18062087, AG18062089, AG18063206, AG18063208, AG18063216, AG18063218, AG18063270, AG18063280, AG18069008, AG18069010, AG18069018, AG18069020, AG18069028, AG18069030, AG19012015, AG19012050, AG19019043, AG19019047, AG21050040, AG21069009, AG21069066, AG21069087 and AG22029028.

36. CSQ-US32: Cheese – Country-Specific Tariff-Rate Quota for Peru

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Peru described in subparagraph (f). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US32".

(b) Subject to subparagraphs (c) and (d), the aggregate quantity of originating goods of Peru described in subparagraph (f) that shall be permitted to enter free of duty in a particular year is specified below:

(c) In the year of entry into force of this Agreement as between the United States and Peru, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in quota amount imported during that year, but prior to entry into force of this Agreement as between the United States and Peru, under paragraph (2) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States-Peru Trade Promotion Agreement.

(d) Notwithstanding Article 2.30.4 (Allocation), upon entry into force of this Agreement as between the United States and Peru, and continuing for as long as this Agreement remains in force between the United States and Peru:

(i) any quantity of goods imported into the United States under the TRQ set out in paragraph (2) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement shall count towards both:

(A) the quantity of goods that may be imported under the TRQ set out in paragraph (2) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States-Peru Trade Promotion Agreement; and

(B) the quantity of goods that may be imported under this TRQ; and

(ii) any quantity of goods imported into the United States under this TRQ shall count towards both:

(A) the quantity of goods that may be imported under this TRQ; and

(B) the quantity of goods that may be imported under the TRQ set out in paragraph (2) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement.

(e) The rate of duty on goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) through (d) shall be equal to the rate of duty applicable pursuant to paragraph 2(b) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement for goods entered in aggregate quantities in excess of the quantities listed in paragraph 2(a) of that Appendix.

(f) Subparagraphs (a) through (e) apply to the following Table 1 provisions: AG04061008, AG04061018, AG04061028, AG04061038, AG04061048, AG04061058, AG04061068, AG04061078, AG04061088, AG04062028, AG04062033, AG04062039, AG04062048, AG04062053, AG04062063, AG04062067, AG04062071, AG04062075, AG04062079, AG04062083, AG04062087, AG04062091, AG04063018, AG04063028, AG04063038, AG04063048, AG04063053, AG04063063, AG04063067, AG04063071, AG04063075, AG04063079, AG04063083, AG04063087, AG04063091, AG04064070, AG04069012, AG04069018, AG04069032, AG04069037, AG04069042, AG04069048, AG04069054, AG04069068, AG04069074, AG04069078, AG04069084, AG04069088, AG04069092, AG04069094, AG04069097 and AG19019036.

37. CSQ-US33: Condensed and Evaporated Milk – Country-Specific Tariff-Rate Quota for Peru

(c) In the year of entry into force of this Agreement as between the United States and Peru, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during that year, but prior to entry into force of this Agreement as between the United States and Peru, under paragraph (3) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States Peru Trade Promotion Agreement.

(i) any quantity of goods imported into the United States under the TRQ set out in paragraph (3) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement shall count towards both:

(A) the quantity of goods that may be imported under the TRQ set out in paragraph (3) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States-Peru Trade Promotion Agreement; and

(B) the quantity of goods that may be imported under this TRQ; and

(ii) any quantity of goods imported into the United States under this TRQ shall count towards both:

(A) the quantity of goods that may be imported under this TRQ; and

(B) the quantity of goods that may be imported under the TRQ set out in paragraph (3) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement.

(e) The rate of duty on goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) through (d) shall be equal to the rate of duty applicable pursuant to paragraph 3(b) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement for goods entered in aggregate quantities in excess of the quantities listed in paragraph 3(a) of that Appendix.

(f) Subparagraphs (a) through (e) apply to the following Table 1 provisions: AG04029170, AG04029190, AG04029945 and AG04029955.

38. CSQ-US34: Processed Dairy Products – Country-Specific Tariff-Rate Quota for Peru

(c) In the year of entry into force of this Agreement as between the United States and Peru, the in-quota quantity set out in subparagraph (b) for that year shall be reduced by the in-quota amount imported during that year, but prior to entry into force of this Agreement as between the United States and Peru, under paragraph (4) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States Peru Trade Promotion Agreement.

(i) any quantity of goods imported into the United States under the TRQ set out in paragraph (4) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement shall count towards both:

(A) the quantity of goods that may be imported under the TRQ set out in paragraph (4) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States-Peru Trade Promotion Agreement; and

(B) the quantity of goods that may be imported under this TRQ; and

(ii) any quantity of goods imported into the United States under this TRQ shall count towards both:

(A) the quantity of goods that may be imported under this TRQ; and

(B) the quantity of goods that may be imported under the TRQ set out in paragraph (4) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement.

(e) The rate of duty on goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (b) through (d) shall be equal to the rate of duty applicable pursuant to paragraph 4(b) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement for goods entered in aggregate quantities in excess of the quantities listed in paragraph 4(a) of that Appendix.

(f) Subparagraphs (a) through (e) apply to the following Table 1 provisions: AG04022950, AG04029990, AG04031050, AG04039095, AG04041015, AG04049050, AG04052070, AG15179060, AG17049058, AG18062082, AG18062083, AG18063270, AG18063280, AG18069008, AG18069010, AG19011040, AG19011085, AG19012015, AG19012050, AG19019043, AG19019047, AG21050040, AG21069009, AG21069066, AG21069087 and AG22029028.

39. CSQ-US35 & CSQ-US36: Sugar and Sugar-Containing Products – Country-Specific Tariff-Rate Quotas for Peru

(a) This paragraph sets out country-specific tariff-rate quotas for the originating goods of Peru described in subparagraphs (g) and (n).

(b) Subparagraph (c) sets out a country-specific tariff-rate quota for the originating goods of Peru described in subparagraph (g). The TRQ set out in subparagraph (c) is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US35".

(c) Subject to subparagraphs (d), (e), and (h), the aggregate quantity of originating goods of Peru described in subparagraph (g) that shall be permitted to enter free of duty in a particular year is specified below:

After 2023, the in-quota quantity grows at 180 MT per year.

The quantities of goods under the following tariff items shall be entered on a raw-value-equivalent basis: AG17011250, AG17011350, AG17011450, AG17019130, AG17019950, AG17029020, and AG21069046. Raw-value equivalents for sugar goods are contained in Chapter 17, U.S. Additional Note 5(c) to the HTSUS.

The United States may administer the duty-free quantities established in this subparagraph through regulations, including licenses.

(d) In the year of entry into force of this Agreement as between the United States and Peru, the in-quota quantity set out in subparagraph (c) for that year shall be reduced by the in-quota amount imported during that year, but prior to entry into force of this Agreement as between the United States and Peru, under paragraph (5a) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States Peru Trade Promotion Agreement.

(e) Notwithstanding Article 2.30.4 (Allocation), upon entry into force of this Agreement as between the United States and Peru, and continuing for as long as this Agreement remains in force between the United States and Peru:

(i) any quantity of goods imported into the United States under the TRQ set out in paragraph (5a) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement below shall count towards both:

(A) the quantity of goods that may be imported under the TRQ set out in paragraph (5a) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United StatesPeru Trade Promotion Agreement; and

(B) the quantity of goods that may be imported under the TRQ set out in subparagraph (c) of this Paragraph; and

(ii) any quantity of goods imported into the United States under the TRQ set out in subparagraph (c) of this Paragraph shall count towards both:

(A) the quantity of goods that may be imported under that TRQ; and

(B) the quantity of goods that may be imported under the TRQ set out in paragraph (5a) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States–Peru Trade Promotion Agreement.

(f) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (c) through (e) and (h) shall continue to receive MFN tariff treatment.

(g) Subparagraphs (a) through (f) and (h) apply to the following Table 1 provisions: AG17011250, AG17011350, AG17011450, AG17019130, AG17019148, AG17019158, AG17019950, AG17022028, AG17023028, AG17024028, AG17026028, AG17029020, AG17029058, AG17029068, AG17049068, AG17049078, AG18061015, AG18061028, AG18061038, AG18061055, AG18061075, AG18062073, AG18062077, AG18062094, AG18062098, AG18069039, AG18069049, AG18069059, AG19012025, AG19012035, AG19012060, AG19012070, AG19019054, AG19019058, AG21011238, AG21011248, AG21011258, AG21012038, AG21012048, AG21012058, AG21039078, AG21069046, AG21069072, AG21069076, AG21069080, AG21069091, AG21069094 and AG21069097.

(h) In any year, duty-free tariff treatment under subparagraph (c) for Peru shall be accorded to the lesser of (i) the aggregate quantity set out in subparagraph (c) for Peru, or (ii) a quantity equal to the amount by which Peru's exports to all destinations exceeds its imports from all sources ("trade surplus") for goods classified under the following subheadings: HS1701.11, HS1701.12, HS1701.91, HS1701.99, HS1702.40, and HS1702.60, except that Peru's exports to the United States of goods classified under subheadings HS1701.11, HS1701.12, HS1701.91, and HS1701.99 and its imports of goods of the United States, whether or not originating, classified under HS1702.40 and HS1702.60 shall not be included in the calculation of its trade surplus. Peru's trade surplus will be calculated using the most recent annual data available.

(i) Subparagraph (j) sets out a country-specific tariff-rate quota for the originating goods of Peru described in subparagraph (n). The TRQ set out in subparagraph (j) is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US36".

(j) Subject to subparagraphs (k) and (l), the aggregate quantity of goods of Peru entered under the provisions listed in subparagraph (n) shall be free of duty in any calendar year and shall not exceed 2,000 MT in any year.

(k) In the year of entry into force of this Agreement as between the United States and Peru, the in-quota quantity set out in paragraph (j) for that year shall be reduced by the in-quota amount imported during that year, but prior to entry into force of this Agreement as between the United States and Peru, under paragraph (5e) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement.

(l) Notwithstanding Article 2.30.4 (Allocation), upon entry into force of this Agreement as between the United States and Peru, and continuing for as long as this Agreement remains in force between the United States and Peru:

(i) any quantity of goods imported into the United States under the TRQ set out in paragraph (5e), Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement below shall count towards both:

(A) the quantity of goods that may be imported under the TRQ set out in paragraph (5e) of Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States Peru Trade Promotion Agreement; and

(B) the quantity of goods that may be imported under the TRQ set out in subparagraph (j) of this Paragraph.

(ii) any quantity of goods imported into the United States under the TRQ set out in subparagraph (j) of this Paragraph shall count towards both:

(A) the quantity of goods that may be imported under that TRQ; and

(B) the quantity of goods that may be imported under the TRQ set out in paragraph (5e), Appendix I to the General Notes to the Tariff Schedule of the United States in Annex 2.3 to the United States – Peru Trade Promotion Agreement.

(m) Goods entered in aggregate quantities in excess of the quantities provided under subparagraphs (j) through (l) shall continue to receive MFN tariff treatment.

(n) Subparagraphs (i) through (m) apply to specialty sugars as provided for in Additional U.S. Note 5 to Chapter 17 of the Harmonized Tariff Schedule of the United States and classified in the following Table 1 provisions: AG17011210, AG17011310,

AG17011410, AG17019110, AG17019910, AG17029010 and AG21069044.

40. CSQ-US37: Sugar and Sugar-Containing Products – Country Specific Tariff-Rate Quota for Vietnam

(a) This paragraph sets out a country-specific tariff-rate quota for the originating goods of Vietnam described in subparagraph (d). The TRQ set out in this paragraph is designated in the Schedule of the United States to Annex 2-D (Tariff Commitments) with the designation "CSQ-US37".

(b) The aggregate quantity of originating goods of Vietnam described in subparagraph (d) that shall be permitted to enter free of duty in each year is 1,500 MT.

(c) Goods entered in aggregate quantities in excess of the quantity listed in subparagraph (b) shall continue to receive MFN tariff treatment.

(d) Subparagraphs (a) through (c) apply to the following Table 1 provisions: AG17011250, AG17011350, AG17011450, AG17019130, AG17019148, AG17019158, AG17019950, AG17022028, AG17023028, AG17024028, AG17026028, AG17029020, AG17029058, AG17029068, AG17049068, ANNEX 2-D – APPENDIX A – UNITED STATES – 49 AG17049078, AG18061015, AG18061028, AG18061038, AG18061055, AG18061075, AG18062073, AG18062077, AG18062094, AG18062098, AG18069039, AG18069049, AG18069059, AG19012025, AG19012035, AG19012060, AG19012070, AG21012038, AG21012048, AG21069046 and AG21069094.

APPENDIX B

AGRICULTURAL SAFEGUARD MEASURES OF THE UNITED STATES

1. This Appendix sets out certain country-specific safeguard measures that the United States may apply, notwithstanding Article 2.4 (Elimination of Customs Duties). For the purposes of this Appendix, the term "metric tonnes" shall be abbreviated as "MT".

2. The United States shall implement any agricultural safeguard measure under this Appendix in a transparent manner, taking reasonable steps to publicly disclose the volume entering under the safeguard. As soon as practicable after commencing application of an agricultural safeguard measure under this Appendix, the United States shall notify in writing the other Party identified in the chapeau of the paragraph below setting out that safeguard and shall provide that other Party with relevant data concerning the measure. On request, the United States shall consult with that other Party regarding the application of the measure.

3. For the purposes of this Appendix, an originating good shall be deemed to be of the Party identified in the chapeau of the paragraph setting out the safeguard if the United States would apply for that good the rate of customs duty for the originating good of that Party pursuant to:

SG-US1: Country-Specific Safeguard Measure for Australia for Swiss Cheese

4. This paragraph sets out a country-specific safeguard measure for the originating goods of Australia described in subparagraph (f). The safeguard measure is designated in the Schedule of the United States to Annex 2-D with the designation SG-US1.

(a) Notwithstanding Article 2.4 (Elimination of Customs Duties), the United States may apply an agricultural safeguard measure in the form of an additional import duty on originating goods of Australia described in subparagraph (f), provided that the conditions in subparagraphs (b) through (e) are met. The sum of any such additional import duty and any other customs duty on such good shall not exceed the least of:

(i) the safeguard duty specified in subparagraph (c);

(ii) the most-favoured-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement for the United States; or

(iii) the prevailing MFN applied rate of duty.

(b) The United States may apply an agricultural safeguard measure during any calendar year on originating goods of Australia described in subparagraph (f) if the quantity of imports during such year exceeds the trigger quantity as specified below:

In years 2 through 24, the trigger quantity shall increase at a compounded annual growth rate of 3 per cent.

(d) The United States may maintain an agricultural safeguard measure under this paragraph only until the end of the calendar year.

(e) The United States shall not apply or maintain an agricultural safeguard measure under this paragraph on a good after January 1 of year 25.

(f) This paragraph applies to the following Table 2 provision: AG04069048.

SG-US2: Country-Specific Safeguard Measure for Australia for Milk Powders

5. This paragraph sets out a country-specific safeguard measure for the originating goods of Australia described in subparagraph (f). The safeguard measure is designated in the Schedule of the United States to Annex 2-D with the designation SG-US2.

(i) the safeguard duty specified in subparagraph (c);

(ii) the most-favoured-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement for the United States; or

(iii) the prevailing MFN applied rate of duty.

(i) In the year of entry into force of the Agreement as between the United States and Australia, the trigger quantity shall be the in-quota quantity for the goods of Australia described in subparagraph (f) for that year, as set out in paragraph 10(b) of Appendix A to the Schedule of the United States to Annex 2- D (Tariff Rate Quotas of the United States), increased by 700 MT.

(ii) In each subsequent year until year 35, the trigger quantity shall increase at a compounded annual growth rate of 2 per cent.

(d) The United States may maintain an agricultural safeguard measure under this paragraph only until the end of the calendar year.

(e) The United States shall not apply or maintain an agricultural safeguard measure under this paragraph on a good after January 1 of year 35.

(f) This paragraph applies to the following Table 2 provisions: AG04021050, AG04022125, AG04022150, AG04039045, AG04039055, AG04041090, AG23099028 and AG23099048.

SG-US3: Country-Specific Safeguard Measure for New Zealand for Other Cheese

6. This paragraph sets out a country-specific safeguard measure for the originating goods of New Zealand described in subparagraph (f). The safeguard measure is designated in the Schedule of the United States to Annex 2-D with the designation SG-US3.

(a) Notwithstanding Article 2.4 (Elimination of Customs Duties), the United States may apply an agricultural safeguard measure in the form of an additional import duty on originating goods of New Zealand described in subparagraph (f), provided that the conditions in subparagraphs (b) through (e) are met. The sum of any such additional import duty and any other customs duty on such good shall not exceed the least of:

(i) the safeguard duty specified in subparagraph (c);

(ii) the most-favoured-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement for the United States; or

(iii) the prevailing MFN applied rate of duty.

(b) The United States may apply an agricultural safeguard measure during any calendar year on originating goods of New Zealand described in subparagraph (f) if the quantity of imports during such year exceeds the trigger quantity as specified below:

In years 13 through 24, the trigger quantity shall increase at a compounded annual growth rate of 3 per cent.

(d) The United States may maintain an agricultural safeguard measure under this paragraph only until the end of the calendar year.

(e) The United States shall not apply or maintain an agricultural safeguard measure under this paragraph on a good after January 1 of year 25.

(f) This paragraph applies to the following Table 2 provision: AG04069097.

SG-US4: Country-Specific Safeguard Measure for New Zealand for Whole Milk Powder

7. This paragraph sets out a country-specific safeguard measure for the originating goods of New Zealand described in subparagraph (f). The safeguard measure is designated in the Schedule of the United States to Annex 2-D with the designation SG-US4.

(a) Notwithstanding Article 2.4 (Elimination of Customs Duties), the United States may apply an agricultural safeguard measure in the form of an additional import duty on originating goods of New Zealand described in subparagraph (f), provided that the conditions in subparagraphs (b) through (e) are met. The sum of any such additional import duty and any other customs duty on such good shall not exceed the least of:

(i) the safeguard duty specified in subparagraph (c);

(ii) the most-favoured-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement for the United States; or

(iii) the prevailing MFN applied rate of duty.

In years 13 through 34, the trigger quantity shall increase at a compounded annual growth rate of 3 per cent.

(d) The United States may maintain an agricultural safeguard measure under this paragraph only until the end of the calendar year.

(e) The United States shall not apply or maintain an agricultural safeguard measure under this paragraph on a good after January 1 of year 35.

(f) This paragraph applies to the following Table 2 provisions: AG04022150, AG04039045, AG04039055, AG04041090, AG23099028 and AG23099048.

SG-US5: Country-Specific Safeguard Measure for Peru for Condensed and Evaporated Milk

8. This paragraph sets out a country-specific safeguard measure for the originating goods of Peru described in subparagraph (g). The safeguard measure is designated in the Schedule of the United States to Annex 2-D with the designation SG-US5.

(a) Notwithstanding Article 2.4 (Elimination of Customs Duties), the United States may apply an agricultural safeguard measure in the form of an additional import duty on originating goods of Peru described in subparagraph (g), provided that the conditions in subparagraphs (b) through (f) are met. The sum of any such additional import duty and any other customs duty on such good shall not exceed the least of:

(i) the base tariff rate provided in the Schedule of the United States to Annex 2-D;

(ii) the most-favoured-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement for the United States; or

(iii) the prevailing MFN applied rate of duty.

(b) The United States may apply an agricultural safeguard measure during any calendar year on originating goods of Peru described in subparagraph (g) if the quantity of imports during such year of:

(i) such goods; and

(ii) goods imported into the United States under the United States-Peru Trade Promotion Agreement under tariff items 04029170, 04029190, 04029945, and 04029955, when combined, exceeds the trigger quantity as set out in subparagraph (f).

(d) The United States shall not apply or maintain an agricultural safeguard measure on originating goods of Peru described in subparagraph (g) on or after the date that the good is subject to duty-free treatment under the Schedule of the United States to Annex 2-D.

(e) The United States may maintain an agricultural safeguard measure under this paragraph only until the end of the calendar year.

(f) The safeguard trigger quantity in any year shall be determined by multiplying the in-quota quantity for the goods of Peru described in subparagraph (g) for that year, as set out in Appendix A to the Schedule of the United States to Annex 2-D, by 130 per cent.

(g) This paragraph applies to the following Table 2 provisions: AG04029170, AG04029190, AG04029945 and AG04029955.

(h) For purposes of subparagraph (c), the additional import duties shall be:

(i) In 2016 through 2020, less than or equal to 100 per cent of the difference between the limit provided in subparagraph (a) and the applicable tariff rate provided in the Schedule of the United States to Annex 2-D; and

(ii) In 2021 through 2024, less than or equal to 50 per cent of the difference between the limit provided in subparagraph (a) and the applicable tariff rate provided in the Schedule of the United States to Annex 2-D.

SG-US6: Country-Specific Safeguard Measure for Peru for Cheese

9. This paragraph sets out a country-specific safeguard measure for the originating goods of Peru described in subparagraph (g). The safeguard measure is designated in the Schedule of the United States to Annex 2-D with the designation SG-US6.

(a) Notwithstanding Article 2.4 (Elimination of Customs Duties), the United States may apply an agricultural safeguard measure in the form of an additional import duty on originating goods of Peru described in subparagraph (g), provided that the conditions in subparagraphs (b) through (f) are met. The sum of any such additional import duty and any other customs duty on such good shall not exceed the least of:

(i) the base tariff rate provided in the Schedule of the United States to Annex 2-D;

(ii) the most-favored-nation (MFN) applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement for the United States; or

(iii) the prevailing MFN applied rate of duty.

(b) The United States may apply an agricultural safeguard measure during any calendar year on originating agricultural goods of Peru described in subparagraph (g) if the quantity of imports during such year of:

(i) such goods; and

(ii) goods imported into the United States under the United States-Peru Trade Promotion Agreement under tariff items 04061008, 04061018, 04061028, 04061038, 04061048, 04061058, 04061068, 04061078, 04061088, 04062028, 04062033, 04062039, 04062048, 04062053, 04062063, 04062067, 04062071, 04062075, 04062079, 04062083, 04062087, 04062091, 04063018, 04063028, 04063038, 04063048, 04063053, 04063063, 04063067, 04063071, 04063075, 04063079, 04063083, 04063087, 04063091, 04064070, 04069012, 04069018, 04069032, 04069037, 04069042, 04069048, 04069054, 04069068, 04069074, 04069078, 04069084, 04069088, 04069092, 04069094, 04069097 and 19019036,

when combined, exceeds the trigger quantity as set out in subparagraph (f).

(e) The United States may maintain an agricultural safeguard measure under this paragraph only until the end of the calendar year.

(f) The agricultural safeguard trigger quantity in any year shall be determined by multiplying the in-quota quantity for the goods of Peru described in subparagraph (g) for that year, as set out in Appendix A to Schedule of the United States to Annex 2-D, by 130 per cent.

(g) This paragraph applies to the following Table 2 provisions: AG04061008, AG04061018, AG04061028, AG04061038, AG04061048, AG04061058, AG04061068, AG04061078, AG04061088, AG04062028, AG04062033, AG04062039, AG04062048, AG04062053, AG04062063, AG04062067, AG04062071, AG04062075, AG04062079, AG04062083, AG04062087, AG04062091, AG04063018, AG04063028, AG04063038, AG04063048, AG04063053, AG04063063, AG04063067, AG04063071, AG04063075, AG04063079, AG04063083, AG04063087, AG04063091, AG04064070, AG04069012, AG04069018, AG04069032, AG04069037, AG04069042, AG04069048, AG04069054, AG04069068, AG04069074, AG04069078, AG04069084, AG04069088, AG04069092, AG04069094, AG04069097 and AG19019036.

(h) For purposes of subparagraph (c), the additional import duties shall be:

APPENDIX C

TARIFF DIFFERENTIALS OF THE UNITED STATES

1. For an originating good identified below in Table C-1, if the United States applies different preferential tariff treatment to other Parties for that originating good in accordance with the Schedule of the United States to Annex 2-D, the United States shall apply the rate of customs duty for the originating good of the Party:

(a) where the good is wholly obtained, either in that Party or in that Party and the United States;

(b) where the good is produced entirely, exclusively from originating materials, excluding any materials produced in another Party other than the United States;

(c) where the good is produced entirely, from originating materials, excluding any materials produced in another Party other than the United States, and from non-originating materials that have met the relevant product specific rule in the Annex 3-D (Product Specific Rules of Origin); or

(d) where the good is produced from originating materials produced in Parties other than that Party or the United States, provided that each of those materials satisfies the applicable change in tariff classification requirement set out in Table C-1.

2. If the originating good is produced in a Party from originating materials produced in Parties other than that Party or the United States and any of those materials do not satisfy the applicable change in tariff classification requirement in Table C-1, an importer may:

(a) claim the highest rate of customs duty for the originating good among the Parties where those originating materials were produced; or

(b) in accordance with paragraph 10 of Annex 2-D, claim the highest rate of customs duty applicable to all Parties for the originating good.

APPENDIX D

BETWEEN JAPAN AND THE UNITED STATES ON MOTOR VEHICLE TRADE

Article 1

1. For the purposes of this Appendix:

Appendix Party means either Japan or the United States, as the case may be; motor vehicle means any good classified under heading 87.03 or 87.04;

originating motor vehicle means any motor vehicle qualifying as originating under Chapter 3 (Rules of Origin and Origin Procedures); and

TBT Agreement means the WTO Agreement on Technical Barriers to Trade, as may be amended.

5. This Appendix shall not apply to sanitary and phytosanitary measures. These are covered by Chapter 7 (Sanitary and Phytosanitary Measures).

Article 2

(a) timely notice of the formation of such advisory committees and similar groups is published;

(b) timely notice of meetings of such advisory committees and similar groups is published;

(d) interested persons have opportunities to appear before or file statements with such advisory committees and similar groups; and

(e) detailed meeting minutes and other documents made available to or prepared by such advisory committees and similar groups are made available to the public.

3. (a) Each Appendix Party shall, no later than the date on which it first supplies information in writing to a non-governmental expert or interested person for comment, regarding a technical regulation, standard or conformity assessment procedure affecting motor vehicles that it is developing, make the same information publicly available, such as by publishing the information on an official website.

4. (a) Each Appendix Party shall endeavour to periodically conduct post-implementation reviews of its significant regulations setting out technical regulations, standards or conformity assessment procedures that affect motor vehicles.

(b) For the purposes of this paragraph:

Article 3

6. (a) With respect to requirements of a safety regulation under the Road Vehicle Law (Law No. 185 of 1951) of Japan (Road Vehicle Law) that the competent authority of Japan identified as of April 1, 2015, if the competent authority of Japan finds that a requirement of the U.S. FMVSS is no less stringent than the requirement under the Road Vehicle Law to which it corresponds, originating motor vehicles from the United States classified under heading 87.03 that comply with such a requirement of the U.S. FMVSS shall be deemed to comply with that requirement under the Road Vehicle Law. Such treatment shall apply unless that requirement under the Road Vehicle Law is modified and, as modified, is substantially more stringent than previously. In that event, Japan shall continue to provide such treatment for a period that is usually not less than 12 months after the date on which the requirement under the Road Vehicle Law is modified.

U.S. FMVSS means Federal Motor Vehicle Safety Standard of the United States; and

initial inspection means the inspection that motor vehicles must undergo in order to be used for transport in Japan in accordance with the Road Vehicle Law.

Article 4

3. For the purposes of this Article:

Article 5

Article 6

(a) In lieu of the definition of transition period provided for in Article 6.1 (Definitions), the following definition shall apply:

(b) In lieu of Article 6.4.2 (Standards for a Transitional Safeguard Measure), the following shall apply:

(d) In lieu of paragraphs 1 and 2 of Article 6.7 (Compensation), the following shall apply:

Article 7

1. For the purposes of this Article, the definitions set out in Article 28.1 (Definitions) shall apply, mutatis mutandis.

3. (a) An Appendix Party may request consultations with the other Appendix Party with respect to any matter described in paragraph 2. The Appendix Party making the request for consultations shall do so in writing, and shall set out the reasons for the request, including identification of the actual or proposed measure or other matter at issue and an indication of the legal basis for the complaint. The requesting Appendix Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

(b) The Appendix Party to which a request for consultations is made shall, unless the Appendix Parties agree otherwise, reply in writing to the request no later than seven days after the date of its receipt of the request. That Appendix Party shall circulate its reply concurrently to the other Parties through the overall contact points and enter into consultations in good faith.

(c) Unless the Appendix Parties agree otherwise, they shall enter into consultations no later than 15 days after the date of receipt of the request.

(d) Unless the Appendix Parties agree otherwise, paragraphs 5 through 8 of Article 28.5 (Consultations) shall apply, mutatis mutandis, to the consultations under this paragraph.

4. (a) An Appendix Party that requested consultations under paragraph 3(a) may request, by means of a written notice addressed to the other Appendix Party, the establishment of a panel if the Appendix Parties fail to resolve the matter within a period of 30 days after the date of receipt of the request for consultations under paragraph 3(a).

(b) The complaining Appendix Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

5. (a) Unless the Appendix Parties agree otherwise no later than 15 days after the date of delivery of the request for the establishment of a panel, the terms of reference shall be to:

(i) examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of a panel under paragraph 4(a); and

6. (a) A panel shall be composed of three members.

(b) Unless the Appendix Parties agree otherwise, they shall apply the following procedures to compose a panel:

(i) Within a period of 15 days after the date of delivery of the request for the establishment of a panel under paragraph

4(a), the complaining Appendix Party, on the one hand, and the responding Appendix Party, on the other, shall each appoint a panellist and notify each other of those appointments.

(ii) If the complaining Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the dispute settlement proceedings shall lapse at the end of that period.

(iii) If the responding Appendix Party fails to appoint a panellist within the period specified in subparagraph (b)(i), the complaining Appendix Party shall select the panellist not yet appointed:

(A) from the responding Appendix Party's list established under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists);

(iv) For appointment of the third panellist, who shall serve as chair:

(A) the Appendix Parties shall endeavour to agree on the appointment of a chair;

(v) If a panellist selected under subparagraph (b)(iii) or (iv)(B) is unable to serve on the panel, the Appendix Parties shall meet no later than five days after the date of learning that the panellist is unavailable to select another panellist from among the remaining members of the list (in the case of subparagraph (b)(iii)), or the roster (in the case of subparagraph (b)(iv)(B)).

(vi) If a panellist appointed under this paragraph resigns or becomes unable to serve on the panel, either during the course of proceeding or when the panel is reconvened under paragraph 10(b), 13 or 17, a replacement panellist shall be appointed within 12 days in accordance with the selection procedures prescribed in this subparagraph for the appointment of the original panellist. The replacement shall have all the powers and duties of the original panellist. The work of the panel shall be suspended pending the appointment of the replacement panellist, and all timeframes set out in this Article and in the Rules of Procedure shall be extended by the amount of time that the work was suspended.

(vii) Paragraphs 4, 5 and 10 of Article 28.9 (Composition of Panels) shall apply, mutatis mutandis, to the selection procedures.

8. Unless the Appendix Parties agree otherwise, Article 28.4 (Choice of Forum), Article 28.6 (Good Offices, Conciliation and Mediation), Article 28.12 (Function of Panels), Article 28.15 (Role of Experts), Article 28.16 (Suspension or Termination of Proceedings), Article 28.17 (Initial Report) and Article 28.18 (Final Report) shall apply, mutatis mutandis, to panel proceedings under this Article, except that:

(a) with respect to Article 28.17.3 (Initial Report), the panel shall present an initial report to the Appendix Parties no later than 120 days after the date of the appointment of the last panellist;

(d) with respect to Article 28.18.1 (Final Report), the panel shall present a final report to the Appendix Parties, including any separate opinions on matters not unanimously agreed, no later than 20 days after presentation of the initial report. After taking any steps to protect confidential information, and no later than seven days after the presentation of the final report, the Appendix Parties shall release the final report to the public.

9. Unless the Appendix Parties agree otherwise, paragraphs 1 and 2 of Article 28.19 (Implementation of Final Report) shall apply, mutatis mutandis, to the implementation of the final report.

10. (a) Unless the Appendix Parties agree otherwise, if in its final report the panel determines that:

(i) (A) the measure at issue is inconsistent with an Appendix Party's obligations in this Agreement;

(B) an Appendix Party has otherwise failed to carry out its obligations in this Agreement; or

12. (a) At any time after release of a final report that contains a determination described in paragraph 10(a), the complaining Appendix Party may provide a written notice to the responding Appendix Party that it intends to suspend benefits under paragraph 14(a)(ii) or (b), or to take action under paragraph 14(a)(i). The notice shall specify the level of benefits that the complaining Appendix Party proposes to suspend under paragraph 14(a)(ii) or (b), or the level of benefits for the purposes of taking action under paragraph 14(a)(i). The complaining Appendix Party may request that the panel be reconvened to determine the level of benefits up to which it may suspend under paragraph 14(a)(ii) or (b), or the level of benefits for the purposes of taking action under paragraph 14(a)(i), at any time after it provides a notice under this subparagraph.

(i) if the complaining Appendix Party has increased the rate of customs duty under paragraph 11; or

(d) An Appendix Party shall deliver any request to reconvene the panel in writing to the other Appendix Party.

(a) the level of benefits of equivalent effect, as set out in Article 28.20.5 (Non-Implementation – Compensation and Suspension of Benefits); and

14. Following a determination by the panel under paragraph 13, the complaining Appendix Party may:

(a) (i) if a final report that contains a determination described in paragraph 10(a) is presented to the Appendix Parties under paragraph 8(d) prior to the date on which customs duties imposed by the complaining Appendix Party on originating motor vehicles from the responding Appendix Party classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00 will begin to be reduced in accordance with the complaining Appendix Party's Schedule to Annex 2-D (Tariff Commitments), taking into account any delay of implementation of the period of the staged tariff elimination as a result of previous action taken pursuant to paragraph 14(a)(i), delay implementation of the period of the staged tariff elimination25 of originating motor vehicles from the responding Appendix Party classified under heading 87.03, HTSUS 8704.21.00, HTSUS 8704.22.50, HTSUS 8704.23.00, HTSUS 8704.31.00, HTSUS 8704.32.00 or HTSUS 8704.90.00, in accordance with the following:

16. (a) The complaining Appendix Party shall provide a written notice to the responding Appendix Party of any increase in the rate of customs duty pursuant to paragraph 11 or paragraph 14(a)(ii) or (b) no later than the date on which the increase in the rate of customs duty takes effect.

17. (a) Without prejudice to the procedures in paragraphs 11 through 14, if the responding Appendix Party considers that it has eliminated the non-conformity or the nullification or impairment found by the panel, it may refer the matter to the panel by providing a written notice to the complaining Appendix Party. The panel shall issue its report on the matter no later than 90 days after the responding Appendix Party provides the written notice.

Article 8

6. Paragraphs 5 through 8 of Article 28.5 (Consultations) shall apply, mutatis mutandis,30 to consultations under paragraphs 4 and 5.

Article 9

(a) monitor implementation of the obligations in this Agreement with respect to motor vehicles;

(e) monitor bilateral, regional and global market developments and trends in trade, investment, production, sales and distribution with respect to motor vehicles and motor vehicle parts;

(f) provide opportunities for input from interested persons of the Appendix Parties on matters relevant to the Committee's work, as the Appendix Parties may agree; and

(g) address other issues, if the Appendix Parties agree.

APPENDIX E

UNITED STATES – VIET NAM EARNED IMPORT ALLOWANCE PROGRAMME

1. The United States shall grant duty-free treatment to a covered good that:

(a) is cut and sewn or otherwise assembled in Viet Nam and is made from U.S. covered fabric and qualifies for preferential tariff treatment under this Agreement; or

(b) is cut and sewn or otherwise assembled in Viet Nam and made from covered fabric that is originating under this Agreement or of any other origin, but otherwise qualifies for preferential tariff treatment under this Agreement, subject to paragraph 9.

2. For each square metre equivalent of U.S. covered fabric imported to Viet Nam from the United States, the United States shall issue one U.S. fabric credit and one matching fabric credit.

3. As a condition of providing duty-free treatment under paragraph 1(a), the United States shall require the importer to demonstrate that the exporter or producer of the covered good has U.S. fabric credits equal to or greater than the total square metre equivalents of U.S. covered fabric in the covered good.

4. As a condition of providing duty-free treatment under paragraph 1(b), the United States shall require the importer to demonstrate that the exporter or producer of the covered good has matching fabric credits equal to or greater than 75 per cent of the total square metre equivalents of fabric in the covered good if it is classified in subheading 6204.62.20 or 6204.62.40, or 130 per cent of the total square metre equivalents of fabric in the covered good if it is classified in subheading 6203.42.20 or 6203.42.40.

5. For the purposes of determining the quantity of square metre equivalents under paragraphs 2 and 3, the conversion factors listed in "Correlation: U.S. Textile and Apparel Industry Category System with the Harmonized Tariff Schedule of the United States of America, 2008", or its successor publications, apply.

6. For the purposes of this Appendix:

covered fabric means woven fabric of cotton that is suitable for use in the manufacture of trousers, bib and brace overalls, breeches or shorts;

U.S. covered fabric means covered fabric that is wholly formed and finished in the United States of yarns wholly formed and finished in the United States classified in Chapter 52 of the Harmonised System, and so certified by the roducer of the fabric;

covered good means a good classified in HS 6203.42.20, 6203.42.40, 6204.62.20 or 6204.62.40.

U.S. fabric credit means a credit that may be used to import a covered good of U.S. fabric described under paragraph 1(a); and

matching fabric credit means a credit that may be used to import a covered good described under paragraph 1(b).

7. The United States shall establish a programme to provide duty-free treatment to covered goods, including to register eligible entities, issue credits and maintain a record of credits used, and shall publish procedures for operation of the programme. The programme shall include an online account system. The programme shall allow for the use of a credit for import of a covered good by a different exporter or producer than the one who earned the credit.

8. The United States shall apply duty-free treatment under this Appendix no later than the date of publication of procedures for the programme or 180 days after the date of entry into force of this Agreement for the United States and Viet Nam, whichever is later.

9. Preferential treatment under paragraph 1(b) shall be provided to imports of covered goods classified in subheading 6203.42.20 or 6203.42.40 in an amount not to exceed:

10. Credits of any type not used in a year will not expire and may be used in any subsequent year while this Appendix is in effect.

Vietnam

ANNEX 2-D

TARIFF SCHEDULE OF VIET NAM GENERAL NOTES

1. The provisions of this Schedule are generally expressed in terms of Viet Nam's Export and Import Classification Nomenclature (EICN), and the interpretation of the provisions of this Schedule, including the product coverage of subheadings of this Schedule, shall be governed by the General Notes, Section Notes and Chapter Notes of the EICN. To the extent that provisions of this Schedule are identical to the corresponding provisions of the EICN, the provisions of this Schedule shall have the same meaning as the corresponding provisions of the EICN.

2. Except as otherwise provided in this Schedule, the base rates of duty set out in this Schedule reflect Viet Nam's Most-Favoured-Nation (MFN) rates of duty in effect on January 1, 2010. For items identified with an asterisk (*), the applicable base rates of duty are those set forth in this Schedule.

3. In this Schedule, rates of duty expressed in monetary units shall be rounded down to the nearest hundredth of a US dollar or one Viet Nam Dong.

4. The following staging categories shall apply to the elimination or reduction of customs duties by Viet Nam pursuant to Article 2.4.2 (Elimination of Customs Duties):

(b) customs duties on originating goods provided for in the items in staging category B2 shall be eliminated in two annual stages, and these goods shall be duty-free effective January 1 of year 2;

(c) customs duties on originating goods provided for in the items in staging category B3 shall be eliminated in three annual stages, and these goods shall be duty-free effective January 1 of year 3;

(d) customs duties on originating goods provided for in the items in staging category B4 shall be eliminated in four annual stages, and these goods shall be duty-free effective January 1 of year 4;

(e) customs duties on originating goods provided for in the items in staging category B5 shall be eliminated in five annual stages, and these goods shall be duty-free effective January 1 of year 5;

(f) customs duties on originating goods provided for in the items in staging category B6 shall be eliminated in six annual stages, and these goods shall be duty-free effective January 1 of year 6;

(g) customs duties on originating goods provided for in the items in staging category B7 shall be eliminated in seven annual stages, and these goods shall be duty-free effective January 1 of year 7;

(h) customs duties on originating goods provided for in the items in staging category B8 shall be eliminated in eight annual stages, and these goods shall be duty-free effective January 1 of year 8;

(i) customs duties on originating goods provided for in the items in staging category B10 shall be eliminated in 10 annual stages, and these goods shall be duty-free effective January 1 of year 10;

(j) customs duties on originating goods provided for in the items in staging category B11 shall be eliminated in 11 annual stages, and these goods shall be duty-free effective January 1 of year 11;

(k) customs duties on originating goods provided for in the items in staging category B12 shall be eliminated in 12 annual stages, and these goods shall be duty-free effective January 1 of year 12;

(l) customs duties on originating goods provided for in the items in staging category B13 shall be eliminated in 13 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(m) customs duties on originating goods provided for in the items in staging category B16 shall be eliminated in 16 annual stages, and these goods shall be duty-free effective January 1 of year 16;

(n) customs duties on originating goods provided for in the items in staging category VN4-A shall be at 12 per cent ad valorem through December 31 of year 2, shall be reduced to 6 per cent ad valorem on January 1 of year 3, and these goods shall be duty-free effective January 1 of year 4;

(o) customs duties on originating goods provided for in the items in staging category VN7-A shall be at 19 per cent ad valorem through December 31 of year 2, shall be reduced to 16 per cent ad valorem on January 1 of year 3, to 12 per cent ad valorem on January 1 of year 4, to 8 per cent ad valorem on January 1 of year 5 and to 4 per cent ad valorem on January 1 of year 6, and these goods shall be duty-free effective January 1 of year 7;

(p) customs duties on originating goods provided for in the items in staging category VN8-A shall remain at the base rate through December 31 of year 7, and these goods shall be duty-free effective January 1 of year 8;

(q) customs duties on originating goods provided for in the items in staging category VN8-B shall be at 9 per cent ad valorem through December 31 of year 3, shall be reduced to 7 per cent ad valorem on January 1 of year 4, to 5 per cent ad valorem on January 1 of year 5, to 4 per cent ad valorem on January 1 of year 6 and to 2 per cent ad valorem on January 1 of year 7, and these goods shall be duty-free effective January 1 of year 8;

(r) customs duties on originating goods provided for in the items in staging category VN10-A shall be at 52 per cent ad valorem through December 31 of year 4, shall be reduced to 45 per cent ad valorem on January 1 of year 5, to 36 per cent ad valorem on January 1 of year 6, to 30 per cent ad valorem on January 1 of year 7, to 25 per cent ad valorem on January 1 of year 8 and to 20 per cent ad valorem on January 1 of year 9, and these goods shall be duty-free effective January 1 of year 10;

(s) If this Agreement enters into force for Viet Nam in 2016, customs duties on originating goods provided for in the items in staging category VN11-A shall remain at the base rate through December 31, 2020. On January 1, 2021, these duties shall be reduced to 7 per cent ad valorem and remain at that rate through December 31, 2026. These goods shall be duty-free effective January 1, 2027. If this Agreement does not enter into force for Viet Nam in 2016 then customs duties on originating goods provided for in the items in staging category VN11-A shall remain at the base rate through December 31 of year 4. These duties shall be reduced to 7 per cent ad valorem on January 1 of year 5 and remain at that rate through December 31 of year 10, and these goods shall be duty-free effective January 1 of year 11;

(t) If this Agreement enters into force for Viet Nam in 2016, customs duties on originating goods provided for in the items in staging category VN11-B shall remain at the base rate through December 31, 2020. On January 1, 2021, these duties shall be reduced to 8 per cent ad valorem and remain at that rate through December 31, 2022. On January 1, 2023, these duties shall be reduced to 7 per cent ad valorem and remain at that rate through December 31, 2026. These goods shall be duty-free effective January 1, 2027. If this Agreement does not enter into force for Viet Nam in 2016 then customs duties on originating goods provided for in the items in staging category VN11-B shall remain at the base rate through December 31 of year 4. These duties shall be reduced to 8 per cent ad valorem on January 1 of year 5 and to 7 per cent ad valorem on January 1 of year 7, and they shall remain at that rate through December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(u) If this Agreement enters into force for Viet Nam in 2016, customs duties on originating goods provided for in the items in staging category VN11-C shall remain at the base rate through December 31, 2020. On January 1, 2021, these duties shall be reduced to 15 per cent ad valorem. On January 1, 2022, these duties shall be reduced to 10 per cent ad valorem and remain at that rate through December 31, 2026. These goods shall be duty-free effective January 1, 2027. If this Agreement does not enter into force for Viet Nam in 2016 then customs duties on originating goods provided for in the items in staging category VN11-C shall remain at the base rate through December 31 of year 4. These duties shall be reduced to 15 per cent ad valorem on January 1 of year 5, to 10 per cent ad valorem on January 1 of year 6, and to 7 per cent ad valorem on January 1 of year 7, and they shall remain at that rate through December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(v) If this Agreement enters into force for Viet Nam in 2016, customs duties on originating goods provided for in the items in staging category VN11-D shall remain at the base rate through December 31, 2019. On January 1, 2020, such duties shall be reduced to 7 per cent ad valorem and remain at that rate through December 31, 2026. Such goods shall be duty-free effective January 1, 2027. If this Agreement does not enter into force for Viet Nam in 2016 then customs duties on originating goods provided for in the items in staging category VN11-D shall remain at the base rate through December 31 of year 3 and shall be reduced to 7 per cent ad valorem on January 1 of year 4, and they shall remain at that rate through December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(w) If this Agreement enters into force for Viet Nam in 2016, customs duties on originating goods provided for in the items in staging category VN11-E shall remain at the base rate through December 31, 2022. On January 1, 2023, these duties shall be reduced to 7 per cent ad valorem and remain at that rate through December 31, 2026. These goods shall be duty-free effective January 1, 2027. If this Agreement does not enter into force for Viet Nam in 2016 then customs duties on originating goods provided for in the items in staging category VN11-E shall remain at the base rate through December 31 of year 6, shall be reduced to 7 per cent ad valorem on January 1 of year 7, and they shall remain at that rate through December 31 of year 10. These goods shall be duty-free effective January 1 of year 11;

(x) If this Agreement enters into force for Viet Nam in 2016, customs duties on originating goods provided for in the items in staging category VN11-F shall remain at the base rate through December 31, 2026, and these goods shall be duty-free effective January 1, 2027. If this Agreement does not enter into force for Viet Nam in 2016 then customs duties on originating goods provided for in the items in staging category VN11-F shall remain at the base rate through December 31 of year 10, and these goods shall be duty free effective January 1 of year 11;

(y) customs duties on originating goods provided for in the items in staging category VN11-G shall be at 44 per cent ad valorem on the date of entry into force of this Agreement for Viet Nam and shall be reduced to 40 per cent ad valorem on January 1 of year 2, to 35 per cent ad valorem on January 1 of year 4, to 30 per cent ad valorem on January 1 of year 6, to 25 per cent ad valorem on January 1 of year 7, to 20 per cent ad valorem on January 1 of year 8, to 15 per cent ad valorem on January 1 of year 9 and to 10 per cent ad valorem on January 1 of year 10, and these goods shall be duty-free effective January 1 of year 11;

(z) customs duties on originating goods provided for in the items in staging category VN11-H shall be at 34 per cent ad valorem on the date of entry into force of this Agreement for Viet Nam, shall be reduced to 33 per cent ad valorem on January 1 of year 2, to 32 per cent ad valorem on January 1 of year 3, to 30 per cent ad valorem on January 1 of year 4, to 29 per cent ad valorem on January 1 of year 5, to 25 per cent ad valorem on January 1 of year 6, to 22 per cent ad valorem on January 1 of year 7, to 18 per cent ad valorem on January 1 of year 8, to 15 per cent ad valorem on January 1 of year 9 and to 11 per cent ad valorem on January 1 of year 10, and these goods shall be duty-free effective January 1 of year 11;

(aa) customs duties on originating goods provided for in the items in staging category VN11-I shall be at 45 per cent ad valorem on the date of entry into force of this Agreement for Viet Nam, shall be reduced to 41 per cent ad valorem on January 1 of year 2, to 36 per cent ad valorem on January 1 of year 3, to 32 per cent ad valorem on January 1 of year 4, to 27 per cent ad valorem on January 1 of year 5, to 23 per cent ad valorem on January 1 of year 6, to 22 per cent ad valorem on January 1 of year 7, to 20 per cent ad valorem on January 1 of year 8, to 15 per cent ad valorem on January 1 of year 9, to 10 per cent ad valorem on January 1 of year 10, and these goods shall be duty-free effective January 1 of year 11;

(bb) customs duties on originating goods provided for in the items in staging category VN12-A shall be at 54 per cent ad valorem on the date of entry into force of this Agreement for Viet Nam, shall be reduced to 49 per cent ad valorem on January 1 of year 2, to 44 per cent ad valorem on January 1 of year 3, to 39 per cent ad valorem on January 1 of year 4, to 35 per cent ad valorem on January 1 of year 5, to 30 per cent ad valorem on January 1 of year 6, to 25 per cent ad valorem on January 1 of year 7, to 20 per cent ad valorem on January 1 of year 8, to 15 per cent ad valorem on January 1 of year 9, to 10 per cent ad valorem on January 1 of year 10 and to 5 per cent ad valorem on January 1 of year 11, and these goods shall be duty-free effective January 1 of year 12;

(cc) customs duties on originating goods provided for in the items in staging category VN12-B shall be at 44 per cent ad valorem on the date of entry into force of this Agreement for Viet Nam, shall be reduced to 40 per cent ad valorem on January 1 of year 2 and remain at that rate through December 31 of year 3, be reduced to 35 per cent ad valorem on January 1 of year 4 and remain at that rate through December 31 of year 5, and be reduced to 30 per cent ad valorem on January 1 of year 6, to 25 per cent ad valorem on January 1 of year 7, to 20 per cent ad valorem on January 1 of year 8, to 15 per cent ad valorem on January 1 of year 9, to 10 per cent ad valorem on January 1 of year 10 and to 5 per cent ad valorem on January 1 of year 11. These goods shall be duty-free effective January 1 of year 12;

(dd) customs duties on originating goods provided for in the items in staging category VN13-A shall remain at the base rate through December 31 of year 3. Beginning January 1 of year 4, these duties shall be eliminated in 10 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(ee) customs duties on originating goods provided for in the items in staging category VN13-B shall remain at the base rate through December 31 of year 2. Beginning January 1 of year 3, these duties shall be eliminated in 11 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(ff) customs duties on originating goods provided for in the items in staging category VN13-C shall remain at the base rate through December 31 of year 1. Beginning January 1 of year 2, these duties shall be eliminated in 12 annual stages, and these goods shall be duty-free effective January 1 of year 13;

(gg) customs duties on originating goods provided for in the items in staging category VN13-D shall remain at the base rate through December 31 of year 4. Beginning January 1 of year 5, these duties shall be eliminated in nine annual stages, and these goods shall be duty-free effective January 1 of year 13;

(hh) customs duties on originating goods provided for in the items in staging category VN13-E shall remain at the base rate through December 31 of year 5. Beginning January 1 of year 6, these duties shall be eliminated in eight annual stages, and these goods shall be duty-free effective January 1 of year 13;

(ii) customs duties on originating goods provided for in the items in staging category VN16-A shall be reduced by 6.25 per cent of the base rate in each of four annual stages. These duties shall remain at the rate as of January 1 of year 4 through December 31 of year 15. These goods shall be duty-free effective January 1 of year 16;

(jj) customs duties on originating goods provided for in the items in staging category VN21-A shall remain at the base rate through December 31 of year 20, and these goods shall be duty-free effective January 1 of year 21;

(kk) customs duties on originating goods provided for in the items in staging category TRQ (TRQ-VN1, TRQ-VN2 and TRQ-VN3) shall be governed by the terms of the TRQ applicable to that tariff item, as outlined in Appendix A (Tariff Rate Quotas of Viet Nam) to Viet Nam's Schedule to Annex 2-D; and (ll) customs duties on originating goods provided for in the items in staging category VN22 shall remain at the base rate.

5. The annual stages referred to in paragraph 4 for the elimination or reduction of customs duties shall be equal, annual stages, except:

(a) as provided in paragraphs 3(b)(i), 4(a)(ii) and 4(b)(ii) in Section A of this Annex; or

(b) as otherwise provided in paragraph 4.

6. Tariff lines with "CKD" indicated in the "Remarks" column are no longer valid.

TARIFF SCHEDULE OF VIET NAM (HS 2012)

APPENDIX A

TARIFF RATE QUOTAS OF VIET NAM

1. This Appendix sets out modifications to the Harmonized Schedule of Viet Nam (HSV) that reflect the tariff rate quotas (TRQs) that Viet Nam shall apply to certain originating goods under this Agreement. In particular, originating goods of the Parties included under this Appendix shall be subject to the rates of duty set out in this Appendix in lieu of the rates of duty specified in Chapters 1 through 97 of the HSV. Notwithstanding any other provision of the HSV, originating goods of the Parties in the quantities described in this Appendix shall be permitted entry into the territory of Viet Nam as provided in this Appendix. Furthermore, any quantity of originating goods imported from a Party under a TRQ provided for in this Appendix shall not be counted toward the in-quota quantity of any TRQ provided for such goods under Viet Nam's WTO tariff schedule or any other trade agreement.

2. The product or products covered by each TRQ set out below are informally identified in the title to the paragraph setting out the TRQ. These titles are included solely to assist readers in understanding this Appendix and shall not alter or supersede the coverage for each TRQ established through identification of covered codes of the HSV.

3. Each TRQ set out below shall apply to an aggregate quantity of originating goods.

ANNEX 2-D – APPENDIX A – VIET NAM – 1

4. TRQ-VN1: Used Vehicles with an Engine Capacity Less Than or Equal to 3000 Cubic Centimetres

(a) The TRQ described in this paragraph is designated in the Schedule of Viet Nam to Annex 2-D (Tariff Commitments) with the designation "TRQ-VN1".

(b) The aggregate quantity of originating goods described in subparagraph (f) that shall be permitted to enter Viet Nam in each year subject to duties determined in accordance with staging category VN16-A shall be:

Starting in year 16, the quantity shall remain at 75 vehicles per year.

(c) Viet Nam shall administer this TRQ and allocate the in-quota quantity through an annual auction, which shall take place in the first quarter of each year. Viet Nam shall be permitted to retain, in addition to duties determined in accordance with staging category VN16-A, the amount of each successful bid in the auction.

(d) Viet Nam shall administer the auction referred to in subparagraph (c) in accordance with all commitments set out elsewhere in this Agreement and with the following procedures:

(i) The auction, and the procedures for submitting a bid, shall be announced on an official website of a governmental authority of Viet Nam at least 30 days prior to the auction.

(ii) Any entity registered as a trader in accordance with Viet Nam's laws shall be eligible to receive a quota allocation through the auction.

(iii) Viet Nam shall not require any minimum bid to participate in or receive a quota allocation through the auction.

(iv) Viet Nam shall maintain transparent procedures for the auction, and shall allocate the quota to the person or persons submitting the highest valid bids.

(v) Within two weeks of the auction, Viet Nam shall publish on an official government website the names of all bidders receiving an allocation, the quantity allocated to each, and the price paid by the bidder for the allocation.

(e) Duties on goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be applied at the MFN rate.

(f) Subparagraphs (a) through (e) apply to used goods less than or equal to five years old having an engine capacity less than or equal to 3000 cubic centimetres provided for in the following HSV headings: 87.02, 87.03 and 87.04.

5. TRQ-VN2: Used Vehicles with an Engine Capacity in Excess of 3000 Cubic Centimetres

(a) The TRQ described in this paragraph is designated in the Schedule of Viet Nam to Annex 2-D (Tariff Commitments) with the designation "TRQ-VN2".

Starting in year 16, the quantity shall remain at 75 vehicles per year.

(d) Viet Nam shall administer the auction referred to in subparagraph (c) in accordance with all commitments set out elsewhere in this Agreement and with the following procedures:

(i) The auction, and the procedures for submitting a bid, shall be announced on an official website of a governmental authority of Viet Nam at least 30 days prior to the auction.

(ii) Any entity registered as a trader in accordance with Viet Nam's laws shall be eligible to receive a quota allocation through the auction.

(iii) Viet Nam shall not require any minimum bid to participate in or receive a quota allocation through the auction.

(iv) Viet Nam shall maintain transparent procedures for the auction, and shall allocate the quota to the person or persons submitting the highest valid bids.

(e) Duties on goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be applied at the MFN rate.

(f) Subparagraphs (a) through (e) apply to used goods less than or equal to five years old having an engine capacity in excess of 3000 cubic centimetres provided for in the following HSV headings: 87.02, 87.03 and 87.04.

6. TRQ-VN3: Unmanufactured Tobacco; Tobacco Refuse

(a) The TRQ described in this paragraph is designated in the Schedule of Viet Nam to Annex 2-D (Tariff Commitments) with the designation "TRQ-VN3".

Starting in year 21, the quantity shall remain unlimited each year.

(d) Viet Nam shall administer allocation method of the state trading enterprises referred to in subparagraph (c) in accordance with all commitments set out in this Agreement.

(e) Duties on goods entered in aggregate quantities in excess of the quantities listed in subparagraph (b) shall be determined in accordance with staging category VN21-A.

(f) Subparagraphs (a) through (e) apply to goods classified in the following HSV heading: 24.01.

CHAPTER 3

RULES OF ORIGIN AND ORIGIN PROCEDURES

Section A: Rules of Origin

Article 3.1: Definitions

For the purposes of this Chapter:

aquaculture means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants from seed stock such as eggs, fry, fingerlings or larvae, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding or protection from predators;

fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;

Generally Accepted Accounting Principles means those principles recognised by consensus or with substantial authoritative support in the territory of a Party with respect to the recording of revenues, expenses, costs, assets and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines for general application, as well as detailed standards, practices and procedures;

good means any merchandise, product, article or material;

indirect material means a material used in the production, testing or inspection of a good but not physically incorporated into the good; or a material used in the maintenance of buildings or the operation of equipment, associated with the production of a good, including:

(a) fuel, energy, catalysts and solvents;

(b) equipment, devices and supplies used to test or inspect the good;

(d) tools, dies and moulds;

(e) spare parts and materials used in the maintenance of equipment and buildings;

(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and

(g) any other material that is not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production;

material means a good that is used in the production of another good;

non-originating good or non-originating material means a good or material that does not qualify as originating in accordance with this Chapter;

originating good or originating material means a good or material that qualifies as originating in accordance with this Chapter;

packing materials and containers for shipment means goods used to protect another good during its transportation, but does not include the packaging materials or containers in which a good is packaged for retail sale;

producer means a person who engages in the production of a good;

production means operations including growing, cultivating, raising, mining, harvesting, fishing, trapping, hunting, capturing, collecting, breeding, extracting, aquaculture, gathering, manufacturing, processing or assembling a good;

transaction value means the price actually paid or payable for the good when sold for export or other value determined in accordance with the Customs Valuation Agreement; and

value of the good means the transaction value of the good excluding any costs incurred in the international shipment of the good.

Article 3.2: Originating Goods

Except as otherwise provided in this Chapter, each Party shall provide that a good is originating if it is:

(a) wholly obtained or produced entirely in the territory of one or more of the Parties as established in Article 3.3 (Wholly Obtained or Produced Goods);

(b) produced entirely in the territory of one or more of the Parties, exclusively from originating materials; or

(c) produced entirely in the territory of one or more of the Parties using non-originating materials provided the good satisfies all applicable requirements of Annex 3-D (Product-Specific Rules of Origin), and the good satisfies all other applicable requirements of this Chapter.

Article 3.3: Wholly Obtained or Produced Goods

Each Party shall provide that for the purposes of Article 3.2 (Originating Goods), a good is wholly obtained or produced entirely in the territory of one or more of the Parties if it is:

(a) a plant or plant good, grown, cultivated, harvested, picked or gathered there;

(b) a live animal born and raised there;

(d) an animal obtained by hunting, trapping, fishing, gathering or capturing there;

(e) a good obtained from aquaculture there;

(f) a mineral or other naturally occurring substance, not included in subparagraphs (a) through (e), extracted or taken from there;

(g) fish, shellfish and other marine life taken from the sea, seabed or subsoil outside the territories of the Parties and, in accordance with international law, outside the territorial sea of non-Partie by vessels that are registered, listed or recorded with a Party and entitled to fly the flag of that Party;

(h) a good produced from goods referred to in subparagraph (g) on board a factory ship that is registered, listed or recorded with a Party and entitled to fly the flag of that Party;

(i) a good other than fish, shellfish and other marine life taken by a Party or a person of a Party from the seabed or subsoil outside the territories of the Parties, and beyond areas over which non-Parties exercise jurisdiction provided that Party or person of that Party has the right to exploit that seabed or subsoil in accordance with international law;

(j) a good that is:

(i) waste or scrap derived from production there; or

(ii) waste or scrap derived from used goods collected there, provided that those goods are fit only for the recovery of raw materials; and

(k) a good produced there, exclusively from goods referred to in subparagraphs (a) through (j), or from their derivatives.

Article 3.4: Treatment of Recovered Materials Used in Production of a Remanufactured Good

1. Each Party shall provide that a recovered material derived in the territory of one or more of the Parties is treated as originating when it is used in the production of, and incorporated into, a remanufactured good.

2. For greater certainty:

(a) a remanufactured good is originating only if it satisfies the applicable requirements of Article 3.2 (Originating Goods); and

(b) a recovered material that is not used or incorporated in the production of a remanufactured good is originating only if it satisfies the applicable requirements of Article 3.2 (Originating Goods).

Article 3.5: Regional Value Content

1. Each Party shall provide that a regional value content requirement specified in this Chapter, including related Annexes, to determine whether a good is originating, is calculated as follows:

(a) Focused Value Method: Based on the Value of Specified Non Originating Materials

(b) Build-down Method: Based on the Value of Non-Originating Materials

where:

RVC is the regional value content of a good, expressed as a percentage;

VNM is the value of non-originating materials, including materials of undetermined origin, used in the production of the good;

NC is the net cost of the good determined in accordance with Article 3.9 (Net Cost);

FVNM is the value of non-originating materials, including materials of undetermined origin, specified in the applicable product-specific-rule (PSR) in Annex 3-D (Product-Specific Rules of Origin) and used in the production of the good. For greater certainty, non-originating materials that are not specified in the applicable PSR in Annex 3-D (Product-Specific Rules of Origin) are not taken into account for the purpose of determining FVNM; and

VOM is the value of originating materials used in the production of the good in the territory of one or more of the Parties.

2. Each Party shall provide that all costs considered for the calculation of regional value content are recorded and maintained in conformity with the Generally Accepted Accounting Principles applicable in the territory of a Party where the good is produced.

Article 3.6: Materials Used in Production

1. Each Party shall provide that if a non-originating material undergoes further production such that it satisfies the requirements of this Chapter, the material is treated as originating when determining the originating status of the subsequently produced good, regardless of whether that material was produced by the producer of the good.

2. Each Party shall provide that if a non-originating material is used in the production of a good, the following may be counted as originating content for the purpose of determining whether the good meets a regional value content requirement:

(a) the value of processing of the non-originating materials undertaken in the territory of one or more of the Parties; and

(b) the value of any originating material used in the production of the non-originating material undertaken in the territory of one or more of the Parties.

Article 3.7: Value of Materials Used in Production

Each Party shall provide that for the purposes of this Chapter, the value of a material is:

(a) for a material imported by the producer of the good, the transaction value of the material at the time of importation, including the costs incurred in the international shipment of the material;

(b) for a material acquired in the territory where the good is produced:

(i) the price paid or payable by the producer in the Party where the producer is located;

(ii) the value as determined for an imported material in subparagraph (a); or

(iii) the earliest ascertainable price paid or payable in the territory of the Party; or

(i) all the costs incurred in the production of the material, which includes general expenses; and

(ii) an amount equivalent to the profit added in the normal course of trade, or equal to the profit that is usually reflected in the sale of goods of the same class or kind as the self-produced material that is being valued.

Article 3.8: Further Adjustments to the Value of Materials

1. Each Party shall provide that for an originating material, the following expenses may be added to the value of the material, if not included under Article 3.7 (Value of Materials Used in Production):

(a) the costs of freight, insurance, packing and all other costs incurred to transport the material to the location of the producer of the good;

(b) duties, taxes and customs brokerage fees on the material, paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, which include credit against duty or tax paid or payable; and

(c) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.

2. Each Party shall provide that, for a non-originating material or material of undetermined origin, the following expenses may be deducted from the value of the material:

(a) the costs of freight, insurance, packing and all other costs incurred in transporting the material to the location of the producer of the good;

(b) duties, taxes and customs brokerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, which include credit against duty or tax paid or payable; and

(c) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.

3. If the cost or expense listed in paragraph 1 or 2 is unknown or documentary evidence of the amount of the adjustment is not available, then no adjustment is allowed for that particular cost.

Article 3.9: Net Cost

1. If Annex 3-D (Product-Specific Rules of Origin) specifies a regional value content requirement to determine whether an automotive good of subheading 8407.31 through 8407.34, 8408.20, subheading 8409.91 through 8409.99, heading 87.01 through 87.09 or heading 87.11 is originating, each Party shall provide that the requirement to determine the origin of that good based on the Net Cost Method is calculated as set out under Article 3.5 (Regional Value Content).

2. For the purposes of this Article:

(a) net cost means total cost minus sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost; and

(b) net cost of the good means the net cost that can be reasonably allocated to the good, using one of the following methods:

(i) calculating the total cost incurred with respect to all automotive goods produced by that producer, subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non allowable interest costs that are included in the total cost of all those goods, and then reasonably allocating the resulting net cost of those goods to the good;

(ii) calculating the total cost incurred with respect to all automotive goods produced by that producer, reasonably allocating the total cost to the good, and then subtracting any sales promotion, marketing and after-sales service costs; royalties, shipping and packing costs, and non allowable interest costs that are included in the portion of the total cost allocated to the good; or

(iii) reasonably allocating each cost that forms part of the total cost incurred with respect to the good, so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs, provided that the allocation of all those costs is consistent with the provisions regarding the reasonable allocation of costs set out in Generally Accepted Accounting Principles.

3. Each Party shall provide that, for the purposes of the Net Cost Method for motor vehicles of heading 87.01 through 87.06 or heading 87.11, the calculation may be averaged over the producer's fiscal year using any one of the following categories, on the basis of all motor vehicles in the category or only those motor vehicles in the category that are exported to the territory of another Party:

(a) the same model line of motor vehicles in the same class of motor vehicles produced in the same plant in the territory of a Party;

(b) the same class of motor vehicles produced in the same plant in the territory of a Party;

(d) any other category as the Parties may decide.

4. Each Party shall provide that, for the purposes of the Net Cost Method in paragraphs 1 and 2, for automotive materials of subheading 8407.31 through 8407.34, 8408.20, heading 84.09, 87.06, 87.07, or 87.08, produced in the same plant, a calculation may be averaged:

(a) over the fiscal year of the motor vehicle producer to whom the good is sold;

(b) over any quarter or month; or

(c) over the fiscal year of the producer of the automotive material, provided that the good was produced during the fiscal year, quarter or month forming the basis for the calculation, in which:

(i) the average in subparagraph (a) is calculated separately for those goods sold to one or more motor vehicle producers; or

(ii) the average in subparagraph (a) or (b) is calculated separately for those goods that are exported to the territory of another Party.

5. For the purposes of this Article:

(a) class of motor vehicles means any one of the following categories of motor vehicles:

(i) motor vehicles classified under subheading 8701.20, motor vehicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or heading 87.05 or 87.06;

(ii) motor vehicles classified under subheading 8701.10 or subheadings 8701.30 through 8701.90;

(iii) motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.21 or 8704.31;

(iv) motor vehicles classified under subheadings 8703.21 through 8703.90; or

(v) motor vehicles classified under heading 87.11.

(b) model line of motor vehicles means a group of motor vehicles having the same platform or model name;

(c) non-allowable interest costs means interest costs incurred by a producer that exceed 700 basis points above the yield on debt obligations of comparable maturities issued by the central level of government of the Party in which the producer is located;

(d) reasonably allocate means to apportion in a manner appropriate under Generally Accepted Accounting Principles;

(e) royalty means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use or right to use any copyright; literary, artistic or scientific work; patent; trademark; design; model; plan; secret formula or process, excluding those payments under technical assistance or similar agreements that can be related to specific services such as:

(i) personnel training, without regard to where that training is performed; or

(ii) engineering, tooling, die-setting, software design and similar computer services, or other services, if performed in the territory of one or more of the Parties;

(f) sales promotion, marketing and after-sales service costs means the following costs related to sales promotion, marketing and after sales service:

(i) sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and conventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (good brochures, catalogues, technical literature, price lists, service manuals and sales aid information); establishment and protection of logos and trademarks; sponsorships; wholesale and retail restocking charges; and entertainment;

(ii) sales and marketing incentives; consumer, retailer or wholesaler rebates; and merchandise incentives;

(iii) salaries and wages; sales commissions; bonuses; benefits (for example, medical, insurance or pension benefits); travelling and living expenses; and membership and professional fees for sales promotion, marketing and after sales service personnel;

(iv) recruiting and training of sales promotion, marketing and after-sales service personnel and after-sales training of customers' employees, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer;

(v) liability insurance for goods;

(vi) office supplies for sales promotion, marketing and after sales service of goods, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer;

(vii) telephone, mail and other communications, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer;

(viii) rent and depreciation of sales promotion, marketing and after-sales service offices and distribution centres;

(ix) property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, marketing and after-sales service offices and distribution centres, if those costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial statements or cost accounts of the producer; and

(x) payments by the producer to other persons for warranty repairs;

(g) shipping and packing costs means the costs incurred to pack a good for shipment and to ship the good from the point of direct shipment to the buyer, excluding costs to prepare and package the good for retail sale; and

(h) total cost means all product costs, period costs and other costs for a good incurred in the territory of one or more of the Parties, where:

(i) product costs are costs that are associated with the production of a good and include the value of materials, direct labour costs and direct overheads;

(ii) period costs are costs, other than product costs, that are expensed in the period in which they are incurred, such as selling expenses and general and administrative expenses; and

(iii) other costs are all costs recorded on the books of the producer that are not product costs or period costs, such as interest.

Total cost does not include profits that are earned by the producer, regardless of whether they are retained by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital gains taxes.

Article 3.10: Accumulation

1. Each Party shall provide that a good is originating if the good is produced in the territory of one or more of the Parties by one or more producers, provided that the good satisfies the requirements in Article 3.2 (Originating Goods) and all other applicable requirements in this Chapter.

2. Each Party shall provide that an originating good or material of one or more of the Parties that is used in the production of another good in the territory of another Party is considered as originating in the territory of the other Party.

3. Each Party shall provide that production undertaken on a non-originating material in the territory of one or more of the Parties by one or more producers may contribute toward the originating content of a good for the purpose of determining its origin, regardless of whether that production was sufficient to confer originating status to the material itself.

Article 3.11: De Minimis

1. Except as provided in Annex 3-C (Exceptions to Article 3.11 (De Minimis)), each Party shall provide that a good that contains non-originating materials that do not satisfy the applicable change in tariff classification requirement specified in Annex 3-D (Product-Specific Rules of Origin) for the good is nonetheless an originating good if the value of all those materials does not exceed 10 per cent of the value of the good, as defined under Article 3.1 (Definitions), and the good meets all the other applicable requirements of this Chapter.

2. Paragraph 1 applies only when using a non-originating material in the production of another good.

3. If a good described in paragraph 1 is also subject to a regional value content requirement, the value of those non-originating materials shall be included in the value of non-originating materials for the applicable regional value content requirement.

4. With respect to a textile or apparel good, Article 4.2 (Rules of Origin and Related Matters) applies in place of paragraph 1.

Article 3.12: Fungible Goods or Materials

Each Party shall provide that a fungible good or material is treated as originating based on the:

(a) physical segregation of each fungible good or material; or

(b) use of any inventory management method recognised in the Generally Accepted Accounting Principles if the fungible good or material is commingled, provided that the inventory management method selected is used throughout the fiscal year of the person that selected the inventory management method.

Article 3.13: Accessories, Spare Parts, Tools and Instructional or Other Information Materials

1. Each Party shall provide that:

(a) in determining whether a good is wholly obtained, or satisfies a process or change in tariff classification requirement as set out in Annex 3-D (Product-Specific Rules of Origin), accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, are to be disregarded; and

(b) in determining whether a good meets a regional value content requirement, the value of the accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, are to be taken into account as originating or non originating materials, as the case may be, in calculating the regional value content of the good.

2. Each Party shall provide that a good's accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, have the originating status of the good with which they are delivered.

3. For the purposes of this Article, accessories, spare parts, tools, and instructional or other information materials are covered when:

(a) the accessories, spare parts, tools and instructional or other information materials are classified with, delivered with but not invoiced separately from the good; and

(b) the types, quantities, and value of the accessories, spare parts, tools and instructional or other information materials are customary for that good.

Article 3.14: Packaging Materials and Containers for Retail Sale

1. Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good, are disregarded in determining whether all the non-originating materials used in the production of the good have satisfied the applicable process or change in tariff classification requirement set out in Annex 3-D (Product-Specific Rules of Origin) or whether the good is wholly obtained or produced.

2. Each Party shall provide that if a good is subject to a regional value content requirement, the value of the packaging materials and containers in which the good is packaged for retail sale, if classified with the good, are taken into account as originating or non-originating, as the case may be, in calculating the regional value content of the good.

Article 3.15: Packing Materials and Containers for Shipment

Each Party shall provide that packing materials and containers for shipment are disregarded in determining whether a good is originating.

Article 3.16: Indirect materials

Each Party shall provide that an indirect material is considered to be originating without regard to where it is produced.

Article 3.17: Sets of Goods

1. Each Party shall provide that for a set classified as a result of the application of rule 3(a) or (b) of the General Rules for the Interpretation of the Harmonized System, the originating status of the set shall be determined in accordance with the product-specific rule of origin that applies to the set.

2. Each Party shall provide that for a set classified as a result of the application of rule 3(c) of the General Rules for the Interpretation of the Harmonized System, the set is originating only if each good in the set is originating and both the set and the goods meet the other applicable requirements of this Chapter.

3. Notwithstanding paragraph 2, for a set classified as a result of the application of rule 3(c) of the General Rules for the Interpretation of the Harmonized System, the set is originating if the value of all the non-originating goods in the set does not exceed 10 per cent of the value of the set.

4. For the purposes of paragraph 3, the value of the non-originating goods in the set and the value of the set shall be calculated in the same manner as the value of non-originating materials and the value of the good.

Article 3.18: Transit and Transhipment

1. Each Party shall provide that an originating good retains its originating status if the good has been transported to the importing Party without passing through the territory of a non-Party.

2. Each Party shall provide that if an originating good is transported through the territory of one or more non-Parties, the good retains its originating status provided that the good:

(a) does not undergo any operation outside the territories of the Parties other than: unloading; reloading; separation from a bulk shipment; storing; labelling or marking required by the importing Party; or any other operation necessary to preserve it in good condition or to transport the good to the territory of the importing Party; and

(b) remains under the control of the customs administration in the territory of a non-Party.

Section B: Origin Procedures

Article 3.19: Application of Origin Procedures

Except as otherwise provided in Annex 3-A (Other Arrangements), each Party shall apply the procedures in this Section.

Article 3.20: Claims for Preferential Treatment

1. Except as otherwise provided in Annex 3-A (Other Arrangements), each Party shall provide that an importer may make a claim for preferential tariff treatment, based on a certification of origin completed by the exporter, producer or importer.

2. An importing Party may:

(a) require that an importer who completes a certification of origin provide documents or other information to support the certification;

(b) establish in its law conditions that an importer shall meet to complete a certification of origin;

(c) if an importer fails to meet or no longer meets the conditions established under subparagraph (b), prohibit that importer from providing its own certification as the basis of a claim for preferential tariff treatment; or

(d) if a claim for preferential tariff treatment is based on a certification of origin completed by an importer, prohibit that importer from making a subsequent claim for preferential tariff treatment for the same importation based on a certification of origin completed by the exporter or producer.

3. Each Party shall provide that a certification of origin:

(a) need not follow a prescribed format;

(b) be in writing, including electronic format;

(d) contains a set of minimum data requirements as set out in Annex 3- B (Minimum Data Requirements).

4. Each Party shall provide that a certification of origin may apply to:

(a) a single shipment of a good into the territory of a Party; or

(b) multiple shipments of identical goods within any period specified in the certification of origin, but not exceeding 12 months.

5. Each Party shall provide that a certification of origin is valid for one year after the date that it was issued or for such longer period specified by the laws and regulations of the importing Party.

6. Each Party shall allow an importer to submit a certification of origin in English. If the certification of origin is not in English, the importing Party may require the importer to submit a translation in the language of the importing Party.

Article 3.21: Basis of a Certification of Origin

1. Each Party shall provide that if a producer certifies the origin of a good, the certification of origin is completed on the basis of the producer having information that the good is originating.

2. Each Party shall provide that if the exporter is not the producer of the good, a certification of origin may be completed by the exporter of the good on the basis of:

(a) the exporter having information that the good is originating; or

(b) reasonable reliance on the producer's information that the good is originating.

3. Each Party shall provide that a certification of origin may be completed by the importer of the good on the basis of:

(a) the importer having documentation that the good is originating; or

(b) reasonable reliance on supporting documentation provided by the exporter or producer that the good is originating.

4. For greater certainty, nothing in paragraph 1 or 2 shall be construed to allow a Party to require an exporter or producer to complete a certification of origin or provide a certification of origin to another person.

Article 3.22: Discrepancies

Each Party shall provide that it shall not reject a certification of origin due to minor errors or discrepancies in the certification of origin.

Article 3.23: Waiver of Certification of Origin

No Party shall require a certification of origin if:

(a) the customs value of the importation does not exceed US $1,000 or the equivalent amount in the importing Party's currency or any higher amount as the importing Party may establish; or

(b) it is a good for which the importing Party has waived the requirement or does not require the importer to present a certification of origin, provided that the importation does not form part of a series of importations carried out or planned for the purpose of evading compliance with the importing Party's laws governing claims for preferential tariff treatment under this Agreement.

Article 3.24: Obligations Relating to Importation

1. Except as otherwise provided for in this Chapter, each Party shall provide that, for the purpose of claiming preferential tariff treatment, the importer shall:

(a) make a declaration that the good qualifies as an originating good;

(b) have a valid certification of origin in its possession at the time the declaration referred to in subparagraph (a) is made;

(d) if required by a Party to demonstrate that the requirements in Article 3.18 (Transit and Transhipment) have been satisfied, provide relevant documents, such as transport documents, and in the case of storage, storage or customs documents.

2. Each Party shall provide that, if the importer has reason to believe that the certification of origin is based on incorrect information that could affect the accuracy or validity of the certification of origin, the importer shall correct the importation document and pay any customs duty and, if applicable, penalties owed.

3. No importing Party shall subject an importer to a penalty for making an invalid claim for preferential tariff treatment if the importer, on becoming aware that such a claim is not valid and prior to discovery of the error by that Party, voluntarily corrects the claim and pays any applicable customs duty under the circumstances provided for in the Party's law.

Article 3.25: Obligations Relating to Exportation

1. Each Party shall provide that an exporter or producer in its territory that completes a certification of origin shall submit a copy of that certification of origin to the exporting Party, on its request.

2. Each Party may provide that a false certification of origin or other false information provided by an exporter or a producer in its territory to support a claim that a good exported to the territory of another Party is originating has the same legal consequences, with appropriate modifications, as those that would apply to an importer in its territory that makes a false statement or representation in connection with an importation.

3. Each Party shall provide that if an exporter or a producer in its territory has provided a certification of origin and has reason to believe that it contains or is based on incorrect information, the exporter or producer shall promptly notify, in writing, every person and every Party to whom the exporter or producer provided the certification of origin of any change that could affect the accuracy or validity of the certification of origin.

Article 3.26: Record Keeping Requirements

1. Each Party shall provide that an importer claiming preferential tariff treatment for a good imported into the territory of that Party shall maintain, for a period of no less than five years from the date of importation of the good:

(a) the documentation related to the importation, including the certification of origin that served as the basis for the claim; and

(b) all records necessary to demonstrate that the good is originating and qualified for preferential tariff treatment, if the claim was based on a certification of origin completed by the importer.

2. Each Party shall provide that a producer or exporter in its territory that provides a certification of origin shall maintain, for a period of no less than five years from the date the certification of origin was issued, all records necessary to demonstrate that a good for which the exporter or producer provided a certification of origin is originating. Each Party shall endeavour to make available information on types of records that may be used to demonstrate that a good is originating.

3. Each Party shall provide that an importer, exporter or producer in its territory may choose to maintain the records specified in paragraphs 1 and 2 in any medium that allows for prompt retrieval, including electronic, optical, magnetic or written form in accordance with that Party's law.

Article 3.27: Verification of Origin

1. For the purpose of determining whether a good imported into its territory is originating, the importing Party may conduct a verification of any claim for preferential tariff treatment by one or more of the following:

(a) a written request for information from the importer of the good;

(b) a written request for information from the exporter or producer of the good;

(d) for a textile or apparel good, the procedures set out in Article 4.6 (Verification); or

(e) other procedures as may be decided by the importing Party and the Party where an exporter or producer of the good is located.

2. If an importing Party conducts a verification, it shall accept information directly from the importer, exporter or producer.

3. If a claim for preferential tariff treatment is based on a certification of origin completed by the exporter or producer and, in response to a request for information by an importing Party under paragraph 1(a), the importer does not provide information to the importing Party or the information provided is not sufficient to support a claim for preferential tariff treatment, the importing Party shall request information from the exporter or producer under paragraph 1(b) or 1(c) before it may deny the claim for preferential tariff treatment. The importing Party shall complete the verification, including any additional request to the exporter or producer under paragraph 1(b) or 1(c), within the time provided in paragraph 6(e).

4. A written request for information or for a verification visit under paragraphs 1(a) through 1(c) shall:

(a) be in English or in an official language of the Party of the person to whom the request is made;

(b) include the identity of the government authority issuing the request;

(c) state the reason for the request, including the specific issue the requesting Party seeks to resolve with the verification;

(d) include sufficient information to identify the good that is being verified;

(e) include a copy of relevant information submitted with the good, including the certification of origin; and

(f) in the case of a verification visit, request the written consent of the exporter or producer whose premises are going to be visited, and state the proposed date and location for the visit and its specific purpose.

5. If an importing Party has initiated a verification in accordance with paragraph 1(b) or 1(c), it shall inform the importer of the initiation of the verification.

6. For a verification under paragraphs 1(a) through 1(c), the importing Party shall:

(a) ensure that a written request for information, or for documentation to be reviewed during a verification visit, is limited to information and documentation to determine whether the good is originating;

(b) describe the information or documentation in sufficient detail to allow the importer, exporter or producer to identify the information and documentation necessary to respond;

(c) allow the importer, exporter or producer at least 30 days from the date of receipt of the written request for information under paragraph 1(a) or 1(b) to respond;

(d) allow the exporter or producer 30 days from the date of receipt of the written request for a visit under paragraph 1(c) to consent or refuse the request; and

(e) make a determination following a verification as expeditiously as possible and no later than 90 days after it receives the information necessary to make the determination, including, if applicable, any information received under paragraph 9, and no later than 365 days after the first request for information or other action under paragraph 1. If permitted by its law, a Party may extend the 365 day period in exceptional cases, such as where the technical information concerned is very complex.

7. If an importing Party makes a verification request under paragraph 1(b), it shall, on request of the Party where the exporter or producer is located and in accordance with the importing Party's laws and regulations, inform that Party. The Parties concerned shall decide the manner and timing of informing the Party where the exporter or producer is located of the verification request. In addition, on request of the importing Party, the Party where the exporter or producer is located may, as it deems appropriate and in accordance with its laws and regulations, assist with the verification. This assistance may include providing a contact point for the verification, collecting information from the exporter or producer on behalf of the importing Party, or other activities in order that the importing Party may make a determination as to whether the good is originating. The importing Party shall not deny a claim for preferential tariff treatment solely on the ground that the Party where the exporter or producer is located did not provide requested assistance.

8. If an importing Party initiates a verification under paragraph 1(c), it shall, at the time of the request for the visit, inform the Party where the exporter or producer is located and provide the opportunity for the officials of the Party where the exporter or producer is located to accompany them during the visit.

9. Prior to issuing a written determination, the importing Party shall inform the importer and any exporter or producer that provided information directly to the importing Party, of the results of the verification and, if the importing Party intends to deny preferential tariff treatment, provide those persons a period of at least 30 days for the submission of additional information relating to the origin of the good.

10. The importing Party shall:

(a) provide the importer with a written determination of whether the good is originating that includes the basis for the determination; and

(b) provide the importer, exporter or producer that provided information during the verification or certified that the good was originating with the results of the verification and the reasons for that result.

11. During verification, the importing Party shall allow the release of the good, subject to payment of duties or provision of security as provided for in its law. If as a result of the verification the importing Party determines that the good is an originating good, it shall grant preferential tariff treatment to the good and refund any excess duties paid or release any security provided, unless the security also covers other obligations.

12. If verifications of identical goods by a Party indicate a pattern of conduct by an importer, exporter or producer of false or unsupported representations relevant to a claim that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods imported, exported or produced by that person until that person

demonstrates that the identical goods qualify as originating. For the purposes of this paragraph, "identical goods" means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating.

13. For the purpose of a verification request, it is sufficient for a Party to rely on the contact information of an exporter, producer or importer in a Party provided in a certification of origin.

Article 3.28: Determinations on Claims for Preferential Tariff Treatment

1. Except as otherwise provided in paragraph 2 or Article 4.7 (Determinations), each Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good that arrives in its territory on or after the date of entry into force of this Agreement for that Party. In addition, if permitted by the importing Party, the importing Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good which is imported into its territory or released from customs control on or after the date of entry into force of this Agreement for that Party.

2. The importing Party may deny a claim for preferential tariff treatment if:

(a) it determines that the good does not qualify for preferential treatment;

(b) pursuant to a verification under Article 3.27 (Verification of Origin), it has not received sufficient information to determine that the good qualifies as originating;

(c) the exporter, producer or importer fails to respond to a written request for information in accordance with Article 3.27 (Verification of Origin);

(d) after receipt of a written notification for a verification visit, the exporter or producer does not provide its written consent in accordance with Article 3.27 (Verification of Origin); or

(e) the importer, exporter or producer fails to comply with the requirements of this Chapter.

3. If an importing Party denies a claim for preferential tariff treatment, it shall issue a determination to the importer that includes the reasons for the determination.

4. A Party shall not reject a claim for preferential tariff treatment for the sole reason that the invoice was issued in a non-Party. If an invoice is issued in a non Party, a Party shall require that the certification of origin be separate from the invoice.

Article 3.29: Refunds and Claims for Preferential Tariff Treatment after Importation

1. Each Party shall provide that an importer may apply for preferential tariff treatment and a refund of any excess duties paid for a good if the importer did not make a claim for preferential tariff treatment at the time of importation, provided that the good would have qualified for preferential tariff treatment when it was imported into the territory of the Party.

2. As a condition for preferential tariff treatment under paragraph 1, the importing Party may require that the importer:

(a) make a claim for preferential tariff treatment;

(b) provide a statement that the good was originating at the time of importation;

(d) provide such other documentation relating to the importation of the good as the importing Party may require, no later than one year after the date of importation or a longer period if specified in the importing Party's law.

Article 3.30: Penalties

A Party may establish or maintain appropriate penalties for violations of its laws and regulations related to this Chapter.

Article 3.31: Confidentiality

Each Party shall maintain the confidentiality of the information collected in accordance with this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information.

Section C: Other Matters

Article 3.32: Committee on Rules of Origin and Origin Procedures

1. The Parties hereby establish a Committee on Rules of Origin and Origin Procedures (Committee), composed of government representatives of each Party, to consider any matters arising under this Chapter.

2. The Committee shall consult regularly to ensure that this Chapter is administered effectively, uniformly and consistently with the spirit and objectives of this Agreement, and shall cooperate in the administration of this Chapter.

3. The Committee shall consult to discuss possible amendments or modifications to this Chapter and its Annexes, taking into account developments in technology, production processes or other related matters.

4. Prior to the entry into force of an amended version of the Harmonized System, the Committee shall consult to prepare updates to this Chapter that are necessary to reflect changes to the Harmonized System.

5. With respect to a textile or apparel good, Article 4.8 (Committee on Textile and Apparel Trade Matters) applies in place of this Article.

6. The Committee shall consult on the technical aspects of submission and the format of the electronic certification of origin.

ANNEX 3-A

OTHER ARRANGEMENTS

1. This Annex shall remain in force for a period of 12 years from the date of entry into force of this Agreement according to Article 30.5.1 (Entry into Force).

2. A Party may apply the arrangements under paragraph 5 only if it has notified the other Parties of its intention to apply those arrangements at the time of entry into force of this Agreement for that Party. That Party (the notifying Party) may apply these arrangements for a period not exceeding five years after the date of entry into force of this Agreement for that Party.

3. The notifying Party may extend the period under paragraph 2 for one additional period of no more than five years if it notifies the other Parties no later than 60 days prior to the expiration of the initial period.

4. In no case shall a Party apply the arrangements under paragraph 5 beyond 12 years from the date of entry into force of this Agreement according to Article 30.5.1 (Entry into Force).

5. An exporting Party may require that a certification of origin for a good exported from its territory be either:

(a) issued by a competent authority; or

(b) completed by an approved exporter.

6. If an exporting Party applies the arrangements under paragraph 5, it shall provide the requirements for those arrangements in publicly available laws or regulations, inform the other Parties at the time of the notification under paragraph 2, and inform the other Parties at least 90 days before any modification

to the requirements comes into effect.

7. An importing Party may treat a certification of origin issued by a competent authority or completed by an approved exporter in the same manner as a certification of origin under Section B.

8. An importing Party may condition acceptance of a certification of origin issued by a competent authority or completed by an approved exporter on the authentication of elements such as stamps, signatures or approved exporter numbers. To facilitate that authentication, the Parties concerned shall exchange information on those elements.

9. If a claim for preferential tariff treatment is based on a certification of origin issued by a competent authority or completed by an approved exporter, the importing Party may make a verification request to the exporter or producer in accordance with Article 3.27 (Verification of Origin) or to the competent authority that issued the certification of origin.

10. If a Party makes a verification request to the competent authority, the competent authority shall respond to it in the same manner as an exporter or producer under Article 3.27 (Verification of Origin). A competent authority shall maintain records in the same manner as an exporter or producer under Article 3.26

(Record Keeping Requirements). If the competent authority that issued the certification of origin fails to respond to a verification request, the importing Party may deny the claim for preferential tariff treatment.

11. If an importing Party makes a verification request under Article 3.27.1(b) (Verification of Origin), it shall, on request of the Party where the exporter or producer is located and in accordance with the importing Party's laws and regulations, inform that Party. The Parties concerned shall decide the manner and timing of informing the Party where the exporter or producer is located of the verification request. In addition, on request of the importing Party, the competent authority of the Party where the exporter or producer is located may, as it deems appropriate and in accordance with the laws and regulations of the Party where the exporter or producer is located, assist in the verification in the same manner as Article 3.27.7 (Verification of Origin).

ANNEX 3-B

MINIMUM DATA REQUIREMENTS

A certification of origin that is the basis for a claim for preferential tariff treatment under this Agreement shall include the following elements:

1. Importer, Exporter or Producer Certification of Origin

Indicate whether the certifier is the exporter, producer or importer in accordance with Article 3.20 (Claims for Preferential Treatment).

2. Certifier

Provide the certifier's name, address (including country), telephone number and e-mail address.

3. Exporter

Provide the exporter's name, address (including country), e-mail address and telephone number if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter. The address of the exporter shall be the place of export of the good in a TPP country.

4. Producer

Provide the producer's name, address (including country), e-mail address and telephone number, if different from the certifier or exporter or, if there are multiple producers, state "Various" or provide a list of producers. A person that wishes for this information to remain confidential may state "Available upon request by the importing authorities". The address of a producer shall be the place of production of the good in a TPP country.

5. Importer

Provide, if known, the importer's name, address, e-mail address and telephone number. The address of the importer shall be in a TPP country.

6. Description and HS Tariff Classification of the Good

(a) Provide a description of the good and the HS tariff classification of the good to the 6-digit level. The description should be sufficient to relate it to the good covered by the certification; and

(b) If the certification of origin covers a single shipment of a good, indicate, if known, the invoice number related to the exportation.

7. Origin Criterion

Specify the rule of origin under which the good qualifies.

8. Blanket Period

Include the period if the certification covers multiple shipments of identical goods for a specified period of up to 12 months as set out in Article 3.20.4 (Claims for Preferential Treatment).

9. Authorised Signature and Date

The certification must be signed and dated by the certifier and accompanied by the following statement:

I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.

ANNEX 3-C

EXCEPTIONS TO ARTICLE 3.11 (De Minimis)

Each Party shall provide that Article 3.11 (De Minimis) shall not apply to:

(a) non-originating materials of heading 04.01 through 04.06, or non originating dairy preparations containing over 10 per cent by dry weight of milk solids of subheading 1901.90 or 2106.90, used in the production of a good of heading 04.01 through 04.06 other than a good of subheading 0402.10 through 0402.29 or 0406.307;

(b) non-originating materials of heading 04.01 through 04.06, or non originating dairy preparations containing over 10 per cent by dry weight of milk solids of subheading 1901.90, used in the production of the following goods:

(i) infant preparations containing over 10 per cent by dry weight of milk solids of subheading 1901.10;

(ii) mixes and doughs, containing over 25 per cent by dry weight of butterfat, not put up for retail sale of subheading 1901.20;

(iii) dairy preparations containing over 10 per cent by dry weight of milk solids of subheading 1901.90 or 2106.90;

(iv) goods of heading 21.05;

(v) beverages containing milk of subheading 2202.90; or

(vi) animal feeds containing over 10 per cent by dry weight of milk solids of subheading 2309.90;

(c) non-originating materials of heading 08.05 or subheading 2009.11 through 2009.39, used in the production of a good of subheading 2009.11 through 2009.39 or a fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, of subheading 2106.90 or 2202.90;

(d) non-originating materials of Chapter 15 of the Harmonized System, used in the production of a good of headings 15.07, 15.08, 15.12, or 15.14; or

(e) non-originating peaches, pears or apricots of Chapter 8 or 20 of the Harmonized System, used in the production of a good of heading 20.08.

ANNEX 3-D

PRODUCT-SPECIFIC RULES OF ORIGIN

Section A: General Interpretative Notes

1. For the purposes of interpreting the product-specific rules of origin set out in this Annex, the following definitions shall apply:

section means a section of the Harmonized System;

chapter means a chapter of the Harmonized System;

heading means the first four digits of the tariff classification number under the Harmonized System; and

subheading means the first six digits of the tariff classification number under the Harmonized System.

2. Under this Annex, a good is an originating good if it is produced entirely in the territory of one or more of the Parties by one or more producers using non originating materials, and:

(a) each of the non-originating materials used in the production of the good satisfies any applicable change in tariff classification requirement, or the good otherwise satisfies the production process requirement, regional value content requirement, or any other requirement specified in this Annex; and

(b) the good satisfies all other applicable requirements of Chapter 3 (Rules of Origin and Origin Procedures).

3. For the purposes of interpreting the product-specific rules of origin set out in this Annex:

(a) the specific rule, or specific set of rules, that applies to a particular heading, subheading or group of headings or subheadings is set out immediately adjacent to the heading, subheading or group of headings or subheadings;

(b) section, chapter or heading notes, where applicable, are found at the beginning of each section or chapter, and are read in conjunction with the product-specific rules of origin and may impose further conditions on, or provide an alternative to the product-specific rules of origin;

(d) if a product-specific rule of origin excludes certain materials of the Harmonized System, it shall be construed to mean that the product specific rule of origin requires that the excluded materials be originating for the good to be originating;

(e) if a good is subject to alternative product-specific rules of origin, the good shall be originating if it satisfies one of the alternatives;

(f) if a good is subject to a product-specific rule of origin that includes multiple requirements, the good shall be originating only if it satisfies all of the requirements; and

(g) if a single product-specific rule of origin applies to a group of headings or subheadings and that rule of origin specifies a change of heading or subheading, it shall be understood that the change in heading or subheading may occur from any other heading or subheading, as the case may be, including from any other heading or subheading within the group.

4. The product-specific rules of origin for textile or apparel goods as defined in Chapter 4 (Textile and Apparel Goods) are contained in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin).

5. For goods of chapters 84 and 87 marked with a symbol ( † ), an optional methodology for satisfying the regional value content requirement of the product specific rule of origin shall apply. This methodology is contained in Appendix 1 (Provisions Related to the Product-Specific Rules of Origin for Certain Vehicles and Parts of Vehicles) to this Annex.

Section B: Product-Specific Rules of Origin

ANNEX 3-D

APPENDIX 1

PROVISIONS RELATED TO THE PRODUCT-SPECIFIC RULES OF ORIGIN FOR CERTAIN VEHICLES AND PARTS OF VEHICLES

1. For the purpose of satisfying the regional value content requirement of the product-specific rule of origin applicable to a good of subheading 8701.10 through 8701.30, or heading 87.02 through 87.05, a material listed in Table A used in the production of that good is originating if:

(a) it meets the applicable requirements for that material under this Annex; or

(b) the production undertaken on that material in the territory of one or more of the Parties involves one or more of the operations listed in Table B.

2. For the purpose of satisfying the regional value content requirement of the product-specific rule of origin applicable to a good listed in Table C, a material used in the production of that good is originating if:

(a) it meets the applicable requirements for that material under this Annex; or

(b) subject to paragraph 3, the production undertaken on that material in the territory of one or more of the Parties involves one or more of the operations listed in Table B.

3. The value of the materials that are originating under paragraph 2(b) shall be counted as originating content, provided that the value counted as originating content does not exceed the applicable threshold listed in Table C of the value (Build-up Method/ Build-down Method) or net cost (Net Cost Method) of the good.

Table A

Table B

Note 1: "Complex" means an operation that requires specialised skills and the use of machines, apparatus or tools that are especially produced or installed to carry out that operation, regardless of whether such machines, apparatus or tools were produced with the intention of carrying out that operation on a specific good.

Note 2: The operations referred to in Table B do not include the mere assembly of non-originating components classified as a good in accordance with Rule 2(a) of the General Rules for the Interpretation of the Harmonized System.

Table C

CHAPTER 4

TEXTILE AND APPAREL GOODS

Article 4.1: Definitions

For the purposes of this Chapter:

customs offence means any act committed for the purpose of, or having the effect of, avoiding a Party's laws or regulations pertaining to the terms of this Agreement governing importations or exportations of textile or apparel goods between the Parties, specifically those that violate a customs law or regulation for restrictions or prohibitions on imports or exports, duty evasion, falsification of documents relating to the importation or exportation of goods, fraud or smuggling; and

transition period means the period beginning on the date of entry into force of this Agreement between the Parties concerned until five years after the date on which the importing Party eliminates duties on a good for the exporting Party pursuant to this Agreement.

Article 4.2: Rules of Origin and Related Matters

Application of Chapter 3

1. Except as provided in this Chapter, Chapter 3 (Rules of Origin and Origin Procedures) shall apply to textile and apparel goods.

De Minimis

2. A textile or apparel good classified outside of Chapters 61 through 63 of the Harmonized System that contains non-originating materials that do not satisfy the applicable change in tariff classification requirement specified in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin), shall nonetheless be considered to be an originating good if the total weight of all those materials is not more than 10 per cent of the total weight of the good and the good meets all the other applicable requirements of this Chapter and Chapter 3 (Rules of Origin and Origin Procedures).

3. A textile or apparel good classified in Chapters 61 through 63 of the Harmonized System that contains non-originating fibres or yarns in the component of the good that determines the tariff classification of the good that do not satisfy the applicable change in tariff classification set out in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin), shall nonetheless be considered to be an originating good if the total weight of all those fibres or yarns is not more than 10 per cent of the total weight of that component and the good meets all the other applicable requirements of this Chapter and Chapter 3 (Rules of Origin and Origin Procedures).

4. Notwithstanding paragraphs 2 and 3, a good described in paragraph 2 containing elastomeric yarn or a good described in paragraph 3 containing elastomeric yarn in the component of the good that determines the tariff classification of the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of one or more of the Parties.

Treatment of Sets

5. Notwithstanding the textile and apparel product-specific rules of origin set out in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin), textile and apparel goods put up in sets for retail sale, classified as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System, shall not be regarded as originating goods unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed 10 per cent of the value of the set.

6. For the purposes of paragraph 5:

(a) the value of non-originating goods in the set shall be calculated in the same manner as the value of non-originating materials in Chapter 3 (Rules of Origin and Origin Procedures); and

(b) the value of the set shall be calculated in the same manner as the value of the good in Chapter 3 (Rules of Origin and Origin Procedures).

Treatment of Short Supply List Materials

7. Each Party shall provide that, for the purposes of determining whether a textile or apparel good is originating under Article 3.2(c) (Originating Goods), a material listed in Appendix 1 (Short Supply List of Products) to Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin) is originating provided that the material meets any requirement, including any end use requirement, specified in the Appendix 1 (Short Supply List of Products) to Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin).

8. If a claim that a textile or apparel good is originating relies on the incorporation of a material listed in Appendix 1 (Short Supply List of Products) to Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin), the importing Party may require in the importation documentation, such as a certification of origin, the number or description of the material on Appendix 1 (Short Supply List of Products) to Annex 4-A (Textiles and Apparel Product Specific Rules of Origin).

9. Non-originating materials marked as temporary in Appendix 1 (Short Supply List of Products) to Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin) may be considered as originating under paragraph 7 for five years from the date of entry into force of this Agreement.

Treatment for Certain Handmade or Folkloric Goods

10. An importing Party may identify particular textile or apparel goods of an exporting Party to be eligible for duty-free or preferential tariff treatment that the importing and exporting Parties mutually agree fall within:

(a) hand-loomed fabrics of a cottage industry;

(b) hand-printed fabrics with a pattern created with a wax-resistance technique;

(d) traditional folklore handicraft goods;

provided that any requirements agreed by the importing and exporting Parties for such treatment are met.

Article 4.3: Emergency Actions

1. Subject to this Article if, as a result of the reduction or elimination of a customs duty under this Agreement, a textile or apparel good benefiting from preferential tariff treatment under this Agreement is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to the domestic market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent and for such time as may be necessary to prevent or remedy such damage and to facilitate adjustment, take emergency action in accordance with paragraph 6, consisting of an increase in the rate of duty on the good of the exporting Party or Parties to a level not to exceed the lesser of:

(a) the most-favoured-nation applied rate of customs duty in effect at the time the action is taken; and

(b) the most-favoured nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement for the importing Party.

2. Nothing in this Article shall be construed to limit the rights and obligations of a Party under Article XIX of GATT 1994 and the Safeguards Agreement, or Chapter 6 (Trade Remedies).

3. In determining serious damage, or actual threat thereof, the importing Party:

(a) shall examine the effect of increased imports from the exporting Party or Parties of a textile or apparel good benefiting from preferential tariff treatment under this Agreement on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilisation of capacity, inventories, market share, exports, wages, employment, domestic prices, profits and investment, none of which either alone or combined with other factors shall necessarily be decisive; and

(b) shall not consider changes in technology or consumer preference in the importing Party as factors supporting a determination of serious damage, or actual threat thereof.

4. The importing Party may take an emergency action under this Article only following its publication of procedures that identify the criteria for a finding of serious damage, or actual threat thereof, and an investigation by its competent authorities. Such an investigation must use data based on the factors described in paragraph 3(a) that serious damage or actual threat thereof is demonstrably caused by increased imports of the product concerned as a result of this Agreement.

5. The importing Party shall submit to the exporting Party or Parties, without delay, written notice of the initiation of the investigation provided for in paragraph 4, as well as of its intent to take emergency action and, on the request of the exporting Party or Parties, shall enter into consultations with that Party or Parties regarding the matter. The importing Party shall provide the exporting Party or Parties with the full details of the emergency action to be taken. The Parties concerned shall begin consultations without delay and, unless otherwise decided, shall complete them within 60 days of receipt of the request. After completion of the consultations, the importing Party shall notify the exporting Party or Parties of any decision. If it decides to take an emergency action, the notification shall include the details of the emergency action, including when it will take effect.

6. The following conditions and limitations shall apply to any emergency action taken under this Article:

(a) no emergency action shall be maintained for a period exceeding two years unless extended for an additional period of up to two years;

(b) no emergency action shall be taken or maintained beyond the expiration of the transition period;

(c) no emergency action shall be taken by an importing Party against any particular good of another Party or Parties more than once; and

(d) on termination of the emergency action, the importing Party shall accord to the good that was subject to the emergency action the tariff treatment that would have been in effect but for the emergency action.

7. The Party taking an emergency action under this Article shall provide to the exporting Party or Parties against whose goods the emergency action is taken mutually agreed trade liberalising compensation in the form of concessions either having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the emergency action. Such concessions shall be limited to textile and apparel goods, unless the Parties concerned otherwise agree. If the Parties concerned are unable to agree on compensation within 60 days or a longer period agreed by the Parties concerned, the Party or Parties against whose good the emergency action is taken may take tariff action that has trade effects substantially equivalent to the trade effects of the emergency action taken under this Article. The tariff action may be taken against any goods of the Party taking the emergency action. The Party taking the tariff action shall apply it only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party's obligation to provide trade compensation and the exporting Party's right to take tariff action shall terminate when the emergency action terminates.

8. No Party shall take or maintain an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to a transitional safeguard measure under Chapter 6 (Trade Remedies), or to a safeguard measure that a Party takes pursuant to Article XIX of GATT 1994 and the Safeguards Agreement.

9. The investigations referred to in this Article shall be carried out according to procedures established by each Party. Each Party shall, on the date of entry into force of this Agreement for that Party or before it initiates an investigation, notify the other Parties of these procedures.

10. Each Party shall, in any year where it takes or maintains an emergency action under this Article, provide a report on such actions to the other Parties.

Article 4.4: Cooperation

1. Each Party shall, in accordance with its laws and regulations, cooperate with other Parties for the purposes of enforcing or assisting in the enforcement of their respective measures concerning customs offences for trade in textile or apparel goods between the Parties, including ensuring the accuracy of claims for preferential tariff treatment under this Agreement.

2. Each Party shall take appropriate measures, which may include legislative, administrative, judicial or other action for:

(a) enforcement of its laws, regulations and procedures related to customs offences; and

(b) cooperation with an importing Party in the enforcement of its laws, regulations and procedures related to the prevention of customs offences.

3. For the purposes of paragraph 2, "appropriate measures" means measures a Party takes, in accordance with its laws, regulations and procedures, such as:

(a) providing its government officials with the legal authority to meet the obligations under this Chapter;

(b) enabling its law enforcement officials to identify and address customs offences;

(c) establishing or maintaining criminal, civil or administrative penalties that are aimed at deterring customs offences;

(d) undertaking appropriate enforcement action when it believes, based on a request from another Party that includes relevant facts, that a customs offence has occurred or is occurring in the requested Party's territory with regard to a textile or apparel good, including in free trade zones of the requested Party; and

(e) cooperating with another Party, on request, to establish facts regarding customs offences in the requested Party's territory with regard to a textile or apparel good, including in free trade zones of the requested Party.

4. A Party may request information from another Party if it has relevant facts, such as historical evidence, indicating that a customs offence is occurring or is likely to occur.

5. Any request under paragraph 4 shall be made in writing, by electronic means or any other method that acknowledges receipt, and shall include a brief statement of the matter at issue, the cooperation requested, the relevant facts indicating a customs offence, and sufficient information for the requested Party to respond in accordance with its laws and regulations.

6. To enhance cooperative efforts under this Article between Parties to prevent and address customs offences, a Party that receives a request under paragraph 4 shall, subject to its laws, regulations and procedures, including those related to confidentiality referred to in Article 4.9.4 (Confidentiality) provide to the requesting Party, upon receipt of a request in accordance with paragraph 5, available information on the existence of an importer, exporter or producer, goods of an importer, exporter or producer, or other matters related to this Chapter. The information may include any available correspondence, reports, bills of lading, invoices, order contracts or other information regarding enforcement of laws or regulations related to the request.

7. A Party may provide information requested in this Article on paper or in electronic form.

8. Each Party shall designate and notify a contact point for cooperation under this Chapter in accordance with Article 27.5 (Contact Points) and shall notify the other Parties promptly of any subsequent changes.

Article 4.5: Monitoring

1. Each Party shall establish or maintain programmes or practices to identify and address textiles and apparel customs offences. This may include programmes or practices to ensure the accuracy of claims for preferential tariff treatment for textile and apparel goods under this Agreement.

2. Through those programmes or practices, a Party may collect or share information related to textiles or apparel goods for use for risk management purposes.

3. In addition to paragraphs 1 and 2, some Parties have bilateral agreements that apply between those Parties.

Article 4.6: Verification

1. An importing Party may conduct a verification with respect to a textile or apparel good pursuant to Article 3.27.1(a), Article 3.27.1(b) or Article 3.27.1(e) (Verification of Origin) and their associated procedures to verify whether a good qualifies for preferential tariff treatment or through a request for a site visit as described in this Article.3

2. An importing Party may request a site visit under this Article from an exporter or producer of textile or apparel goods to verify whether:

(a) a textile or apparel good qualifies for preferential tariff treatment under this Agreement; or

(b) customs offences are occurring or have occurred.

3. During a site visit under this Article, an importing Party may request access to:

(a) records and facilities relevant to the claim for preferential tariff treatment; or

(b) records and facilities relevant to the customs offences being verified.

4. If an importing Party seeks to conduct a site visit under paragraph 2, it shall notify the host Party, no later than 20 days before the visit, regarding:

(a) the proposed dates;

(b) the number of exporters and producers to be visited in appropriate detail to facilitate the provision of any assistance, but does not need to specify the names of the exporters or producers to be visited;

(d) if relevant, the customs offences being verified under paragraph 2(b), including relevant factual information available at the time of the notification related to the specific offences, which may include historical information; and

(e) whether the importer claimed preferential tariff treatment.

5. On receipt of information on a proposed visit under paragraph 2, the host Party may request information from the importing Party to facilitate planning of the visit, such as logistical arrangements or provision of requested assistance.

6. If an importing Party seeks to conduct a site visit under paragraph 2, it shall provide the host Party, as soon as practicable and prior to the date of the first visit to an exporter or producer under this Article, with a list of the names and addresses of the exporters or producers it proposes to visit.

7. If an importing Party seeks to conduct a site visit under paragraph 2:

(a) officials of the host Party may accompany the officials of the importing Party during the site visit;

(b) officials of the host Party may, in accordance with its laws and regulations, on request of the importing Party or on its own initiative, assist the officials of the importing Party during the site visit and provide, to the extent available, information relevant to conduct the site visit;

(c) the importing and host Parties shall limit communication regarding the site visit to relevant government officials and shall not inform the exporter or producer outside the government of the host Party in advance of a visit or provide any other verification or enforcement information not publicly available whose disclosure could undermine the effectiveness of the action;

(d) the importing Party shall request permission from the exporter or producer for access to the relevant records or facilities, no later than the time of the visit. Unless advance notice would undermine the effectiveness of the site visit, the importing Party shall request permission with appropriate advance notice; and

(e) if the exporter or producer of textile or apparel goods denies such permission or access, the visit will not occur. The importing Party shall give consideration to any reasonable alternative dates proposed, taking into account the availability of relevant employees or facilities of the person visited.

8. On completion of a site visit under paragraph 2, the importing Party shall:

(a) on request of the host Party, inform the host Party of its preliminary findings;

(b) on receiving a written request from the host Party, provide the host Party with a written report of the results of the visit, including any findings, no later than 90 days after the date of the request. If the report is not in English, the importing Party shall provide a translation of it in English on request of the host Party; and

(c) on receiving a written request of the exporter or producer, provide that person with a written report of the results of the visit as it pertains to that exporter or producer, including any findings, no later than 90 days after the date of the request. This may be a report prepared under subparagraph (b), with appropriate changes. The importing Party shall inform the exporter or producer of the entitlement to request this report. If the report is not in English, the importing Party shall provide a translation of it in English on request of that exporter or producer.

9. If an importing Party conducts a site visit under paragraph 2 and, as a result, intends to deny preferential tariff treatment to a textile or apparel good, it shall, before it may deny preferential tariff treatment, provide to the importer and any exporter or producer that provided information directly to the importing Party 30 days to submit additional information to support the claim for preferential tariff treatment. If advance notice was not given under paragraph 7(d), that importer, exporter or producer may request an additional 30 days.

10. The importing Party shall not reject a claim for preferential tariff treatment on the sole grounds that the host Party does not provide the requested assistance or information under this Article.

11. While a verification is being conducted under this Article, the importing Party may take appropriate measures under procedures established in its laws and regulations, including suspending or denying the application of preferential tariff treatment to textile or apparel goods of the exporter or producer subject to a verification.

12. If verifications of identical textile or apparel goods by an importing Party indicate a pattern of conduct by an exporter or producer of false or unsupported representations that a textile or apparel good imported into its territory qualifies for preferential tariff treatment, the importing Party may withhold preferential tariff treatment for identical textile or apparel goods imported, exported or produced by that person until it is demonstrated to the importing Party that those identical textile or apparel goods qualify for preferential tariff treatment. For the purposes of this paragraph, "identical textile or apparel goods" means textile or apparel goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating.

Article 4.7: Determinations

The importing Party may deny a claim for preferential tariff treatment for a textile or apparel good:

(a) for a reason listed in Article 3.28.2 (Determination on Claims for Preferential Tariff Treatment);

(b) if, pursuant to a verification under this Chapter, it has not received sufficient information to determine that the textile or apparel good qualifies as originating; or

(c) if, pursuant to a verification under this Chapter, access or permission for the visit is denied, the importing Party is prevented from completing the visit on the proposed date, and the exporter or producer does not provide an alternative date acceptable to the importing Party, or the exporter or producer does not provide access to the relevant records or facilities during a visit.

Article 4.8: Committee on Textile and Apparel Trade Matters

1. The Parties hereby establish a Committee on Textile and Apparel Trade Matters, (Committee), composed of government representatives of each Party.

2. The Committee shall meet at least once within one year of the date of entry into force of this Agreement, and thereafter at such times as the Parties decide and on request of the Commission. The Committee shall meet at such venues and times as the Parties decide.

3. The Committee may consider any matter arising under this Chapter, and its functions shall include review of the implementation of this Chapter, consultation on technical or interpretive difficulties that may arise under this Chapter, and discussion of ways to improve the effectiveness of cooperation under this Chapter.

4. In addition to discussions under the Committee, a Party may request in writing discussions with any other Party or Parties regarding matters under this Chapter concerning those Parties, with a view to resolution of the issue, if it believes difficulties are occurring with respect to implementation of this Chapter.

5. Unless the Parties amongst whom a discussion is requested agree otherwise, they shall hold the discussions pursuant to paragraph 4 within 30 days of receipt of a written request by a Party and endeavour to conclude within 90 days of receipt of the written request.

6. Discussions under this Article shall be confidential and without prejudice to the rights of any Party in any other proceeding.

7. Prior to the entry into force of an amended version of the Harmonized System, the Committee shall consult to prepare updates to this Chapter that are necessary to reflect changes to the Harmonized System.

Article 4.9: Confidentiality

1. Each Party shall maintain the confidentiality of the information collected in accordance with this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information.

2. If a Party provides information to another Party in accordance with this Chapter and designates the information as confidential, the other Party shall keep the information confidential. The Party that provides the information may require the other Party to furnish written assurance that the information will be held in confidence, used only for the purposes specified in the other Party's request for information, and not disclosed without the specific permission of the Party that provided the information or the person that provided the information to that Party.

3. A Party may decline to provide information requested by another Party if that Party has failed to act in conformity with paragraph 1 or 2.

4. Each Party shall adopt or maintain procedures for protecting from unauthorised disclosure confidential information submitted in accordance with the administration of the Party's customs or other laws related to this Chapter, or collected in accordance with this Chapter, including information the disclosure of which could prejudice the competitive position of the person providing the information.

ANNEX 4-A

TEXTILES AND APPAREL PRODUCT-SPECIFIC RULES OF ORIGIN

Section A: General Interpretative Notes

1. For the purposes of interpreting the product-specific rules of origin set out in this Annex, the following definitions shall apply:

section means a section of the Harmonized System;

chapter means a chapter of the Harmonized System;

heading means the first four digits of the tariff classification number under the Harmonized System; and

subheading means the first six digits of the tariff classification number under the Harmonized System.

2. Under this Annex, a good is an originating good if it is produced entirely in the territory of one or more of the Parties by one or more producers using non originating materials, and:

(a) each of the non-originating materials used in the production of the good satisfies any applicable change in tariff classification requirement, or the good otherwise satisfies the production process requirement or any other requirement specified in this Annex; and

(b) the good satisfies all other applicable requirements of Chapter 3 (Rules of Origin and Origin Procedures) or Chapter 4 (Textile and Apparel Goods).

3. For the purposes of interpreting the product-specific rules of origin set out in this Annex:

(b) chapter or heading notes, where applicable, are found at the beginning of each chapter, and are read in conjunction with the product-specific rules of origin and may impose further conditions on, or provide an alternative to the product-specific rules of origin;

(e) if a good is subject to a product-specific rule of origin that includes multiple requirements, the good shall be originating only if it satisfies all of the requirements;

(f) if a single product-specific rule of origin applies to a group of headings or subheadings and that rule of origin specifies a change of heading or subheading, it shall be understood that the change in heading or subheading may occur from any other heading or subheading, as the case may be, including from any other heading or subheading within the group; and

(g) the Short Supply List of Products, set out as Appendix 1 to this Annex, is read in conjunction with the product-specific rules of origin set out in this Annex.

ANNEX 4-A

APPENDIX 1

SHORT SUPPLY LIST OF PRODUCTS

CHAPTER 5

CUSTOMS ADMINISTRATION AND TRADE FACILITATION

Article 5.1: Customs Procedures and Facilitation of Trade

Each Party shall ensure that its customs procedures are applied in a manner that is predictable, consistent and transparent.

Article 5.2: Customs Cooperation

1. With a view to facilitating the effective operation of this Agreement, each Party shall:

(a) encourage cooperation with other Parties regarding significant customs issues that affect goods traded between the Parties; and

(b) endeavour to provide each Party with advance notice of any significant administrative change, modification of a law or regulation, or similar measure related to its laws or regulations that governs importations or exportations, that is likely to substantially affect the operation of this Agreement.

2. Each Party shall, in accordance with its law, cooperate with the other Parties through information sharing and other activities as appropriate, to achieve compliance with their respective laws and regulations that pertain to:

(a) the implementation and operation of the provisions of this Agreement governing importations or exportations, including claims for preferential tariff treatment, procedures for making claims for preferential tariff treatment and verification procedures;

(b) the implementation, application and operation of the Customs Valuation Agreement;

(d) investigation and prevention of customs offences, including duty evasion and smuggling; and

(e) other customs matters as the Parties may decide.

3. If a Party has a reasonable suspicion of unlawful activity related to its laws or regulations governing importations, it may request that another Party provide

specific confidential information that is normally collected in connection with the importation of goods.

4. If a Party makes a request under paragraph 3, it shall:

(a) be in writing;

(b) specify the purpose for which the information is sought; and

(c) identify the requested information with sufficient specificity for the other Party to locate and provide the information.

5. The Party from which the information is requested under paragraph 3 shall, subject to its law and any relevant international agreements to which it is a party, provide a written response containing the requested information.

6. For the purposes of paragraph 3, "a reasonable suspicion of unlawful activity" means a suspicion based on relevant factual information obtained from public or private sources comprising one or more of the following:

(a) historical evidence of non-compliance with laws or regulations that govern importations by an importer or exporter;

(b) historical evidence of non-compliance with laws or regulations that govern importations by a manufacturer, producer or other person involved in the movement of goods from the territory of one Party to the territory of another Party;

(c) historical evidence of non-compliance with laws or regulations that govern importations by some or all of the persons involved in the movement of goods within a specific product sector from the territory of one Party to the territory of another Party; or

(d) other information that the requesting Party and the Party from which the information is requested agree is sufficient in the context of a particular request.

7. Each Party shall endeavour to provide another Party with any other information that would assist that Party to determine whether imports from, or exports to, that Party are in compliance with the receiving Party's laws or regulations that govern importations, in particular those related to unlawful activities, including smuggling and similar infractions.

8. In order to facilitate trade between the Parties, a Party receiving a request shall endeavour to provide the Party that made the request with technical advice and assistance for the purpose of:

(a) developing and implementing improved best practices and risk management techniques;

(b) facilitating the implementation of international supply chain standards;

(d) developing the technical skill of customs personnel; and

(e) enhancing the use of technologies that can lead to improved compliance with the requesting Party's laws or regulations that govern importations.

9. The Parties shall endeavour to establish or maintain channels of communication for customs cooperation, including by establishing contact points in order to facilitate the rapid and secure exchange of information and improve coordination on importation issues.

Article 5.3: Advance Rulings

1. Each Party shall issue, prior to the importation of a good of a Party into its territory, a written advance ruling at the written request of an importer in its territory, or an exporter or producer in the territory of another Party, with regard to:

(a) tariff classification;

(b) the application of customs valuation criteria for a particular case in accordance with the Customs Valuation Agreement;

(d) such other matters as the Parties may decide.

2. Each Party shall issue an advance ruling as expeditiously as possible and in no case later than 150 days after it receives a request, provided that the requester has submitted all the information that the receiving Party requires to make the advance ruling. This includes a sample of the good for which the requester is seeking an advance ruling if requested by the receiving Party. In issuing an advance ruling, the Party shall take into account the facts and circumstances that the requester has provided. For greater certainty, a Party may decline to issue an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of administrative or judicial review. A Party that declines to issue an advance ruling shall promptly notify the requester in writing, setting out the relevant facts and circumstances and the basis for its decision to decline to issue the advance ruling.

3. Each Party shall provide that its advance rulings shall take effect on the date that they are issued or on another date specified in the ruling, and remain in effect for at least three years, provided that the law, facts and circumstances on which the ruling is based remain unchanged. If a Party's law provides that an advance ruling becomes ineffective after a fixed period of time, that Party shall endeavour to provide procedures that allow the requester to renew the ruling expeditiously before it becomes ineffective, in situations in which the law, facts and circumstances on which the ruling was based remain unchanged.

4. After issuing an advance ruling, the Party may modify or revoke the advance ruling if there is a change in the law, facts or circumstances on which the ruling was based, if the ruling was based on inaccurate or false information, or if the ruling was in error.

5. A Party may apply a modification or revocation in accordance with paragraph 4 after it provides notice of the modification or revocation and the reasons for it.

6. No Party shall apply a revocation or modification retroactively to the detriment of the requester unless the ruling was based on inaccurate or false information provided by the requester.

7. Each Party shall ensure that requesters have access to administrative review of advance rulings.

8. Subject to any confidentiality requirements in its law, each Party shall endeavour to make its advance rulings publicly available, including online.

Article 5.4: Response to Requests for Advice or Information

On request from an importer in its territory, or an exporter or producer in the territory of another Party, a Party shall expeditiously provide advice or information relevant to the facts contained in the request on:

(a) the requirements for qualifying for quotas, such as tariff rate quotas;

(b) the application of duty drawback, deferral or other types of relief that reduce, refund or waive customs duties;

(d) country of origin marking, if it is a prerequisite for importation; and

(e) other matters as the Parties may decide.

Article 5.5: Review and Appeal

1. Each Party shall ensure that any person to whom it issues a determination on a customs matter has access to:

(a) administrative review of the determination, independent4of the employee or office that issued the determination; and

(b) judicial review of the determination.

2. Each Party shall ensure that an authority that conducts a review under paragraph 1 notifies the parties to the matter in writing of its decision and the reasons for the decision. A Party may require a request as a condition for providing the reasons for a decision in the review.

Article 5.6: Automation

1. Each Party shall:

(a) endeavour to use international standards with respect to procedures for the release of goods;

(b) make electronic systems accessible to customs users;

(d) endeavour to implement common standards and elements for import and export data in accordance with the World Customs Organization (WCO) Data Model;

(e) take into account, as appropriate, WCO standards, recommendations, models and methods developed through the WCO or APEC; and

(f) work toward developing a set of common data elements that are drawn from the WCO Data Model and related WCO recommendations as well as guidelines to facilitate government to government electronic sharing of data for purposes of analysing trade flows.

2. Each Party shall endeavour to provide a facility that allows importers and exporters to electronically complete standardised import and export requirements at a single entry point.

Article 5.7: Express Shipments

1. Each Party shall adopt or maintain expedited customs procedures for express shipments while maintaining appropriate customs control and selection. These procedures shall:

(a) provide for information necessary to release an express shipment to be submitted and processed before the shipment arrives;

(b) allow a single submission of information covering all goods contained in an express shipment, such as a manifest, through, if possible, electronic means;

(d) under normal circumstances, provide for express shipments to be released within six hours after submission of the necessary customs documents, provided the shipment has arrived;

(e) apply to shipments of any weight or value recognising that a Party may require formal entry procedures as a condition for release, including declaration and supporting documentation and payment of customs duties, based on the good's weight or value; and

(f) provide that, under normal circumstances, no customs duties will be assessed on express shipments valued at or below a fixed amount set under the Party's law.7Each Party shall review the amount periodically taking into account factors that it may consider relevant, such as rates of inflation, effect on trade facilitation, impact on risk management, administrative cost of collecting duties compared to the amount of duties, cost of cross border trade transactions, impact on SMEs or other factors related to the collection of customs duties.

2. If a Party does not provide the treatment in paragraph 1(a) through (f) to all shipments, that Party shall provide a separate8and expedited customs procedure that provides that treatment for express shipments.

Article 5.8: Penalties

1. Each Party shall adopt or maintain measures that allow for the imposition of a penalty by a Party's customs administration for a breach of its customs laws, regulations or procedural requirements, including those governing tariff classification, customs valuation, country of origin and claims for preferential treatment under this Agreement.

2. Each Party shall ensure that a penalty imposed by its customs administration for a breach of a customs law, regulation or procedural requirement is imposed only on the person legally responsible for the breach.

3. Each Party shall ensure that the penalty imposed by its customs administration is dependent on the facts and circumstances9of the case and is commensurate with the degree and severity of the breach.

4. Each Party shall ensure that it maintains measures to avoid conflicts of interest in the assessment and collection of penalties and duties. No portion of the remuneration of a government official shall be calculated as a fixed portion or percentage of any penalties or duties assessed or collected.

5. Each Party shall ensure that if a penalty is imposed by its customs administration for a breach of a customs law, regulation or procedural requirement, an explanation in writing is provided to the person upon whom the penalty is imposed specifying the nature of the breach and the law, regulation or procedure used for determining the penalty amount.

6. If a person voluntarily discloses to a Party's customs administration the circumstances of a breach of a customs law, regulation or procedural requirement prior to the discovery of the breach by the customs administration, the Party's customs administration shall, if appropriate, consider this fact as a potential mitigating factor when a penalty is established for that person.

7. Each Party shall provide in its laws, regulations or procedures, or otherwise give effect to, a fixed and finite period within which its customs administration may initiate proceedings to impose a penalty relating to a breach of a customs law, regulation or procedural requirement.

8. Notwithstanding paragraph 7, a customs administration may impose, outside of the fixed and finite period, a penalty where this is in lieu of judicial or administrative tribunal proceedings.

Article 5.9: Risk Management

1. Each Party shall adopt or maintain a risk management system for assessment and targeting that enables its customs administration to focus its inspection activities on high-risk goods and that simplifies the clearance and movement of low-risk goods.

2. In order to facilitate trade, each Party shall periodically review and update, as appropriate, the risk management system specified in paragraph 1.

Article 5.10: Release of Goods

1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties. This paragraph shall not require a Party to release a good if its requirements for release have not been met.

2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that:

(a) provide for the release of goods within a period no longer than that required to ensure compliance with its customs laws and, to the extent possible, within 48 hours of the arrival of the goods;

(b) provide for the electronic submission and processing of customs information in advance of the arrival of the goods in order to expedite the release of goods from customs control upon arrival;

(d) allow an importer to obtain the release of goods prior to the final determination of customs duties, taxes and fees by the importing Party's customs administration when these are not determined prior to or promptly upon arrival, provided that the good is otherwise eligible for release and any security required by the importing Party has been provided or payment under protest, if required by a Party, has been made. Payment under protest refers to payment of duties, taxes and fees if the amount is in dispute and procedures are available to resolve the dispute.

3. If a Party allows for the release of goods conditioned on a security, it shall adopt or maintain procedures that:

(a) ensure that the amount of the security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled;

(b) ensure that the security shall be discharged as soon as possible after its customs administration is satisfied that the obligations arising from the importation of the goods have been fulfilled; and

(c) allow importers to provide security using non-cash financial instruments, including, in appropriate cases where an importer frequently enters goods, instruments covering multiple entries.

Article 5.11: Publication

1. Each Party shall make publicly available, including online, its customs laws, regulations, and general administrative procedures and guidelines, to the extent possible in the English language.

2. Each Party shall designate or maintain one or more enquiry points to address enquiries from interested persons concerning customs matters and shall make information concerning the procedures for making such enquiries publicly available online.

3. To the extent possible, each Party shall publish in advance regulations of general application governing customs matters that it proposes to adopt and shall provide interested persons the opportunity to comment before the Party adopts the regulation.

Article 5.12: Confidentiality

1. If a Party provides information to another Party in accordance with this Chapter and designates the information as confidential, the other Party shall keep the information confidential. The Party that provides the information may require the other Party to furnish written assurance that the information will be held in confidence, used only for the purposes specified in the other Party's request for information, and not disclosed without the specific permission of the Party that provided the information or the person that provided the information to that Party.

2. A Party may decline to provide information requested by another Party if that Party has failed to act in accordance with paragraph 1.

3. Each Party shall adopt or maintain procedures for protecting from unauthorised disclosure confidential information submitted in accordance with the administration of the Party's customs laws, including information the disclosure of which could prejudice the competitive position of the person providing the information.

CHAPTER 6

TRADE REMEDIES

Section A: Safeguard Measures

Article 6.1: Definitions

For the purposes of this Section:

domestic industry means, with respect to an imported good, the producers as a whole of the like or directly competitive good operating within the territory of a Party, or those producers whose collective production of the like or directly competitive good constitutes a major proportion of the total domestic production of that good;

serious injury means a significant overall impairment in the position of a domestic industry;

threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent;

transition period means, in relation to a particular good, the three-year period beginning on the date of entry into force of this Agreement, except where the tariff elimination for the good occurs over a longer period of time, in which case the transition period shall be the period of the staged tariff elimination for that good; and

transitional safeguard measure means a measure described in Article 6.3.2 (Imposition of a Transitional Safeguard Measure).

Article 6.2: Global Safeguards

1. Nothing in this Agreement affects the rights and obligations of the Parties under Article XIX of GATT 1994 and the Safeguards Agreement.

2. Except as provided in paragraph 3, nothing in this Agreement shall confer any rights or impose any obligations on the Parties with regard to actions taken pursuant to Article XIX of GATT 1994 and the Safeguards Agreement.

3. A Party that initiates a safeguard investigatory process shall provide to the other Parties an electronic copy of the notification given to the WTO Committee on Safeguards under Article 12.1(a) of the Safeguards Agreement.

4. No Party shall apply or maintain a safeguard measure under this Chapter, to any product imported under a tariff rate quota (TRQ) established by the Party under this Agreement. A Party taking a safeguard measure under Article XIX of GATT 1994 and the Safeguards Agreement may exclude from the safeguard measure imports of originating goods under a TRQ established by the Party under this Agreement and set out in Appendix A to the Party's Schedule to Annex 2-D (Tariff Commitments), if such imports are not a cause of serious injury or threat thereof.

5. No Party shall apply or maintain two or more of the following measures, with respect to the same good, at the same time:

(a) a transitional safeguard measure under this Chapter;

(b) a safeguard measure under Article XIX of GATT 1994 and the Safeguards Agreement;

(d) an emergency action under Chapter 4 (Textiles and Apparel Goods).

Article 6.3: Imposition of a Transitional Safeguard Measure

1. A Party may apply a transitional safeguard measure described in paragraph 2, during the transition period only, if as a result of the reduction or elimination of a customs duty pursuant to this Agreement:

(a) an originating good of another Party, individually, is being imported into the Party's territory in such increased quantities, in absolute terms or relative to domestic production, and under such conditions, as to cause or threaten to cause serious injury to the domestic industry that produces a like or directly competitive good; or

(b) an originating good of two or more Parties, collectively, is being imported into the Party's territory in such increased quantities, in absolute terms or relative to domestic production, and under such conditions, as to cause or threaten to cause serious injury to the domestic industry that produces a like or directly competitive good, provided that the Party applying the transitional safeguard measure demonstrates, with respect to the imports from each such Party against which the transitional safeguard measure is applied, that imports of the originating good from each of those Parties have increased, in absolute terms or relative to domestic production, since the date of entry into force of this Agreement for those Parties.

2. If the conditions in paragraph 1 are met, the Party may, to the extent necessary to prevent or remedy serious injury and to facilitate adjustment:

(a) suspend the further reduction of any rate of customs duty provided for under this Agreement on the good; or

(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:

(i) the most-favoured-nation applied rate of customs duty in effect at the time the measure is applied; and

(ii) the most-favoured-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement for that Party.

The Parties understand that neither tariff rate quotas nor quantitative restrictions would be a permissible form of transitional safeguard measure.

Article 6.4: Standards for a Transitional Safeguard Measure

1. A Party shall maintain a transitional safeguard measure only for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment.

2. That period shall not exceed two years, except that the period may be extended by up to one year if the competent authority of the Party that applies the measure determines, in conformity with the procedures set out in Article 6.5 (Investigation Procedures and Transparency Requirements), that the transitional safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment.

3. No Party shall maintain a transitional safeguard measure beyond the expiration of the transition period.

4. In order to facilitate adjustment in a situation where the expected duration of a transitional safeguard measure is over one year, the Party that applies the measure shall progressively liberalise it at regular intervals during the period of application.

5. On the termination of a transitional safeguard measure, the Party that applied the measure shall apply the rate of customs duty set out in the Party's Schedule to Annex 2-D (Tariff Commitments) as if that Party had never applied the transitional safeguard measure.

6. No Party shall apply a transitional safeguard measure more than once on the same good.

Article 6.5: Investigation Procedures and Transparency Requirements

1. A Party shall apply a transitional safeguard measure only following an investigation by the Party's competent authorities in accordance with Article 3 and Article 4.2(c) of the Safeguards Agreement; to this end, Article 3 and Article 4.2(c) of the Safeguards Agreement are incorporated into and made part of this Agreement, mutatis mutandis.

2. In the investigation described in paragraph 1, the Party shall comply with the requirements of Article 4.2(a) and Article 4.2(b) of the Safeguards Agreement; to this end, Article 4.2(a) and Article 4.2(b) of the Safeguards Agreement are incorporated into and made part of this Agreement, mutatis mutandis.

Article 6.6: Notification and Consultation

1. A Party shall promptly notify the other Parties, in writing, if it:

(a) initiates a transitional safeguard investigation under this Chapter;

(b) makes a finding of serious injury, or threat of serious injury, caused by increased imports, as set out in Article 6.3 (Imposition of a Transitional Safeguard Measure);

(d) takes a decision to modify a transitional safeguard measure previously undertaken.

2. A Party shall provide to the other Parties a copy of the public version of the report of its competent authorities that is required under Article 6.5.1 (Investigation Procedures and Transparency Requirements).

3. When a Party makes a notification pursuant to paragraph 1(c) that it is applying or extending a transitional safeguard measure, that Party shall include in that notification:

(a) evidence of serious injury, or threat of serious injury, caused by increased imports of an originating good of another Party or Parties as a result of the reduction or elimination of a customs duty pursuant to this Agreement;

(b) a precise description of the originating good subject to the transitional safeguard measure including its heading or subheading under the HS Code, on which the schedules of tariff commitments in Annex 2-D (Tariff Commitments) are based;

(d) the date of the transitional safeguard measure's introduction, its expected duration and, if applicable, a timetable for progressive liberalisation of the measure; and

(e) in the case of an extension of the transitional safeguard measure, evidence that the domestic industry concerned is adjusting.

4. On request of a Party whose good is subject to a transitional safeguard proceeding under this Chapter, the Party that conducts that proceeding shall enter into consultations with the requesting Party to review a notification under paragraph 1 or any public notice or report that the competent investigating authority issued in connection with the proceeding.

Article 6.7: Compensation

1. A Party applying a transitional safeguard measure shall, after consultations with each Party against whose good the transitional safeguard measure is applied, provide mutually agreed trade liberalising compensation in the form of concessions that have substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the transitional safeguard measure. The Party shall provide an opportunity for those consultations no later than 30 days after the application of the transitional safeguard measure.

2. If the consultations under paragraph 1 do not result in an agreement on trade liberalising compensation within 30 days, any Party against whose good the transitional safeguard measure is applied may suspend the application of substantially equivalent concessions to the trade of the Party applying the transitional safeguard measure.

3. A Party against whose good the transitional safeguard measure is applied shall notify the Party applying the transitional safeguard measure in writing at least 30 days before it suspends concessions in accordance with paragraph 2.

4. The obligation to provide compensation under paragraph 1 and the right to suspend concessions under paragraph 2 terminates on the termination of the transitional safeguard measure.

Section B: Antidumping and Countervailing Duties

Article 6.8: Antidumping and Countervailing Duties

1. Each Party retains its rights and obligations under Article VI of GATT 1994, the AD Agreement and the SCM Agreement.

2. Nothing in this Agreement shall confer any rights or impose any obligations on the Parties with regard to proceedings or measures taken pursuant to Article VI of GATT 1994, the AD Agreement or the SCM Agreement.

3. No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Section or Annex 6-A (Practices Relating to Antidumping and Countervailing Duty Proceedings).

Annex 6-A

Practices Relating to Antidumping and Countervailing Duty Proceedings

The Parties recognise, in Article 6.8 (Antidumping and Countervailing Duties), the right of the Parties to apply trade remedy measures consistent with Article VI of GATT 1994, the AD Agreement and the SCM Agreement, and further recognise the following practices as promoting the goals of transparency and due process in trade remedy proceedings:

(a) Upon receipt by a Party's investigating authorities of a properly documented antidumping or countervailing duty application with respect to imports from another Party, and no later than seven days before initiating an investigation, the Party provides written notification of its receipt of the application to the other Party.

(b) In any proceeding in which the investigating authorities determine to conduct an in-person verification of information that is provided by a respondent,2and that is pertinent to the calculation of antidumping duty margins or the level of a countervailable subsidy, the investigating authorities promptly notify each respondent of their intent, and:

(i) provide to each respondent at least 10 working days advance notice of the dates on which the authorities intend to conduct an in-person verification of the information;

(ii) at least five working days prior to an in-person verification, provide to the respondent a document that sets out the topics the respondent should be prepared to address during the verification and that describes the types of supporting documentation to be made available for review; and

(iii) after an in-person verification is completed, and subject to the protection of confidential information3, issue a written report that describes the methods and procedures followed in carrying out the verification and the extent to which the information provided by the respondent was supported by the documents reviewed during the verification. The report is made available to all interested parties in sufficient time for the parties to defend their interests.

(i) all non-confidential documents that are part of the record of the investigation or review; and

(ii) to the extent feasible without revealing confidential information, non-confidential summaries of confidential information that is contained in the record of each investigation or review. To the extent that individual information is not susceptible of summarisation, it may be aggregated by the investigating authority. The public file and a list of all documents that are contained in the record of the investigation or review are physically available for inspection and copying during the investigating authorities' normal business hours or electronically available for download.

(d) If, in an antidumping or countervailing duty action that involves imports from another Party, a Party's investigating authorities determine that a timely response to a request for information does not comply with the request, the investigating authorities inform the interested party that submitted the response of the nature of the deficiency and, to the extent practicable in light of time limits established to complete the antidumping or countervailing duty action, provide that interested party with an opportunity to remedy or explain the deficiency. If that interested party submits further information in response to that deficiency and the investigating authorities find that the response is not satisfactory, or that the response is not submitted within the applicable time limits, and if the investigating authorities disregard all or part of the original and subsequent responses, the investigating authorities explain in the determination or other written document the reasons for disregarding the information.

(e) Before a final determination is made, the investigating authorities inform all interested parties of the essential facts that form the basis of the decision whether to apply definitive measures. Subject to the protection of confidential information, the investigating authorities may use any reasonable means to disclose the essential facts, which includes a report summarising the data in the record, a draft or preliminary determination or some combination of those reports or determinations, to provide interested parties an opportunity to respond to the disclosure of essential facts.

CHAPTER 7

SANITARY AND PHYTOSANITARY MEASURES

Article 7.1: Definitions

1. The definitions in Annex A of the SPS Agreement are incorporated into this Chapter and shall form part of this Chapter, mutatis mutandis.

2. In addition, for the purposes of this Chapter:

competent authority means a government body of each Party responsible for measures and matters referred to in this Chapter;

emergency measure means a sanitary or phytosanitary measure that is applied by an importing Party to another Party to address an urgent problem of human, animal or plant life or health protection that arises or threatens to arise in the Party applying the measure;

import check means an inspection, examination, sampling, review of documentation, test or procedure, including laboratory, organoleptic or identity, conducted at the border by an importing Party or its representative to determine if a consignment complies with the sanitary and phytosanitary requirements of the importing Party;

import programme means mandatory sanitary or phytosanitary policies, procedures or requirements of an importing Party that govern the importation of goods;

primary representative means the government body of a Party that is responsible for the implementation of this Chapter and the coordination of that Party's participation in Committee activities under Article 7.5 (Committee on Sanitary and Phytosanitary Measures);

risk analysis means the process that consists of three components: risk assessment; risk management; and risk communication;

risk communication means the exchange of information and opinions concerning risk and risk-related factors between risk assessors, risk managers, consumers and other interested parties; and

risk management means the weighing of policy alternatives in light of the results of risk assessment and, if required, selecting and implementing appropriate control options, including regulatory measures.

Article 7.2: Objectives

The objectives of this Chapter are to:

(a) protect human, animal or plant life or health in the territories of the Parties while facilitating and expanding trade by utilising a variety of means to address and seek to resolve sanitary and phytosanitary issues;

(b) reinforce and build on the SPS Agreement;

(c) strengthen communication, consultation and cooperation between the Parties, and particularly between the Parties' competent authorities and primary representatives;

(d) ensure that sanitary or phytosanitary measures implemented by a Party do not create unjustified obstacles to trade;

(e) enhance transparency in and understanding of the application of each Party's sanitary and phytosanitary measures; and

(f) encourage the development and adoption of international standards, guidelines and recommendations, and promote their implementation by the Parties.

Article 7.3: Scope

1. This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties.

2. Nothing in this Chapter prevents a Party from adopting or maintaining halal requirements for food and food products in accordance with Islamic law.

Article 7.4: General Provisions

1. The Parties affirm their rights and obligations under the SPS Agreement.

2. Nothing in this Agreement shall limit the rights and obligations that each Party has under the SPS Agreement.

Article 7.5: Committee on Sanitary and Phytosanitary Measures

1. For the purposes of the effective implementation and operation of this Chapter, the Parties hereby establish a Committee on Sanitary and Phytosanitary Measures (Committee), composed of government representatives of each Party responsible for sanitary and phytosanitary matters.

2. The objectives of the Committee are to:

(a) enhance each Party's implementation of this Chapter;

(b) consider sanitary and phytosanitary matters of mutual interest; and

3. The Committee:

(a) shall provide a forum to improve the Parties' understanding of sanitary and phytosanitary issues that relate to the implementation of the SPS Agreement and this Chapter;

(b) shall provide a forum to enhance mutual understanding of each Party's sanitary and phytosanitary measures and the regulatory processes that relate to those measures;

(d) shall determine the appropriate means, which may include ad hoc working groups, to undertake specific tasks related to the functions of the Committee;

(e) may identify and develop technical assistance and cooperation projects between the Parties on sanitary and phytosanitary measures;

(f) may serve as a forum for a Party to share information on a sanitary or phytosanitary issue that has arisen between it and another Party or Parties, provided that the Parties between which the issue has arisen have first attempted to address the issue through discussions between themselves; and

(g) may consult on matters and positions for the meetings of the Committee on Sanitary and Phytosanitary Measures established under Article 12 of the SPS Agreement (WTO SPS Committee), and meetings held under the auspices of the Codex Alimentarius Commission, the World Organisation for Animal Health and the International Plant Protection Convention.

4. The Committee shall establish its terms of reference at its first meeting and may revise those terms as needed.

5. The Committee shall meet within one year of the date of entry into force of this Agreement and once a year thereafter unless Parties agree otherwise.

Article 7.6: Competent Authorities and Contact Points

Each Party shall provide the other Parties with a written description of the sanitary and phytosanitary responsibilities of its competent authorities and contact points within each of these authorities and identify its primary representative within 60 days of the date of entry into force of this Agreement for that Party. Each Party shall keep this information up to date.

Article 7.7: Adaptation to Regional Conditions, Including Pest- or Disease Free Areas and Areas of Low Pest or Disease Prevalence

1. The Parties recognise that adaptation to regional conditions, including regionalisation, zoning and compartmentalisation, is an important means to facilitate trade.

2. The Parties shall take into account the relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

3. The Parties may cooperate on the recognition of pest- or disease-free areas, and areas of low pest or disease prevalence with the objective of acquiring confidence in the procedures followed by each Party for the recognition of pest or disease-free areas, and areas of low pest or disease prevalence.

4. When an importing Party receives a request for a determination of regional conditions from an exporting Party and determines that the information provided by the exporting Party is sufficient, it shall initiate an assessment within a reasonable period of time.

5. When an importing Party commences an assessment of a request for a determination of regional conditions under paragraph 4, that Party shall promptly, on request of the exporting Party, explain its process for making the determination of regional conditions.

6. On request of the exporting Party, the importing Party shall inform the exporting Party of the status of the assessment of the exporting Party's request for a determination of regional conditions.

7. When an importing Party adopts a measure that recognises specific regional conditions of an exporting Party, the importing Party shall communicate that measure to the exporting Party in writing and implement the measure within a reasonable period of time.

8. The importing and exporting Parties involved in a particular determination may also decide in advance the risk management measures that will apply to trade between them in the event of a change in the status.

9. The Parties involved in a determination recognising regional conditions are encouraged, if mutually agreed, to report the outcome to the Committee.

10. If the evaluation of the evidence provided by the exporting Party does not result in a determination to recognise pest- or disease-free areas, or areas of low pest and disease prevalence, the importing Party shall provide the exporting Party with the rationale for its determination.

11. If there is an incident that results in the importing Party modifying or revoking the determination recognising regional conditions, on request of the exporting Party, the Parties involved shall cooperate to assess whether the determination can be reinstated.

Article 7.8: Equivalence

1. The Parties acknowledge that recognition of the equivalence of sanitary and phytosanitary measures is an important means to facilitate trade. Further to Article 4 of the SPS Agreement, the Parties shall apply equivalence to a group of measures or on a systems-wide basis, to the extent feasible and appropriate. In determining the equivalence of a specific sanitary or phytosanitary measure, group of measures or on a systems-wide basis, each Party shall take into account the relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

2. On request of the exporting Party, the importing Party shall explain the objective and rationale of its sanitary or phytosanitary measure and clearly identify the risk the sanitary or phytosanitary measure is intended to address.

3. When an importing Party receives a request for an equivalence assessment and determines that the information provided by the exporting Party is sufficient, it shall initiate the equivalence assessment within a reasonable period of time.

4. When an importing Party commences an equivalence assessment, that Party shall promptly, on request of the exporting Party, explain its equivalence process and plan for making the equivalence determination and, if the determination results in recognition, for enabling trade.

5. In determining the equivalence of a sanitary or phytosanitary measure, an importing Party shall take into account available knowledge, information and relevant experience, as well as the regulatory competence of the exporting Party.

6. The importing Party shall recognise the equivalence of a sanitary or phytosanitary measure if the exporting Party objectively demonstrates to the importing Party that the exporting Party's measure:

(a) achieves the same level of protection as the importing Party's measure; or

(b) has the same effect in achieving the objective as the importing Party's measure.2

7. When an importing Party adopts a measure that recognises the equivalence of an exporting Party's specific sanitary or phytosanitary measure, group of measures or measures on a systems-wide basis, the importing Party shall communicate the measure it has adopted to the exporting Party in writing and implement the measure within a reasonable period of time.

8. The Parties involved in an equivalence determination that results in recognition are encouraged, if mutually agreed, to report the outcome to the Committee.

9. If an equivalence determination does not result in recognition by the importing Party, the importing Party shall provide the exporting Party with the rationale for its decision.

Article 7.9: Science and Risk Analysis

1. The Parties recognise the importance of ensuring that their respective sanitary and phytosanitary measures are based on scientific principles.

2. Each Party shall ensure that its sanitary and phytosanitary measures either conform to the relevant international standards, guidelines or recommendations or, if its sanitary and phytosanitary measures do not conform to international standards, guidelines or recommendations, that they are based on documented and objective scientific evidence that is rationally related to the measures, while recognising the Parties' obligations regarding assessment of risk under Article 5 of the SPS Agreement.

3. Recognising the Parties' rights and obligations under the relevant provisions of the SPS Agreement, nothing in this Chapter shall be construed to prevent a Party from:

(a) establishing the level of protection it determines to be appropriate;

(b) establishing or maintaining an approval procedure that requires a risk analysis to be conducted before the Party grants a product access to its market; or

4. Each Party shall:

(a) ensure that its sanitary and phytosanitary measures do not arbitrarily or unjustifiably discriminate between Parties where identical or similar conditions prevail, including between its own territory and that of other Parties; and

(b) conduct its risk analysis in a manner that is documented and that provides interested persons and other Parties an opportunity to comment, in a manner to be determined by that Party.

5. Each Party shall ensure that each risk assessment it conducts is appropriate to the circumstances of the risk at issue and takes into account reasonably available and relevant scientific data, including qualitative and quantitative information.

6. When conducting its risk analysis, each Party shall:

(a) take into account relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations;

(b) consider risk management options that are not more trade restrictive5than required, including the facilitation of trade by not taking any measure, to achieve the level of protection that the Party has determined to be appropriate; and

(c) select a risk management option that is not more trade restrictive than required to achieve the sanitary or phytosanitary objective, taking into account technical and economic feasibility.

7. If an importing Party requires a risk analysis to evaluate a request from an exporting Party to authorise importation of a good of that exporting Party, the importing Party shall provide, on request of the exporting Party, an explanation of the information required for the risk assessment. On receipt of the required information from the exporting Party, the importing Party shall endeavour to facilitate the evaluation of the request for authorisation by scheduling work on this request in accordance with the procedures, policies, resources, and laws and regulations of the importing Party.

8. On request of the exporting Party, the importing Party shall inform the exporting Party of the progress of a specific risk analysis request, and of any delay that may occur during the process.

9. If the importing Party, as a result of a risk analysis, adopts a sanitary or phytosanitary measure that allows trade to commence or resume, the importing Party shall implement the measure within a reasonable period of time.

10. Without prejudice to Article 7.14 (Emergency Measures), no Party shall stop the importation of a good of another Party solely for the reason that the importing Party is undertaking a review of its sanitary or phytosanitary measure, if the importing Party permitted the importation of that good of the other Party when the review was initiated.

Article 7.10: Audits6

1. To determine an exporting Party's ability to provide required assurances and meet the sanitary and phytosanitary measures of the importing Party, each importing Party shall have the right, subject to this Article, to audit the exporting Party's competent authorities and associated or designated inspection systems. That audit may include an assessment of the competent authorities' control programmes, including: if appropriate, reviews of the inspection and audit programmes; and on-site inspections of facilities.

2. An audit shall be systems-based and designed to check the effectiveness of the regulatory controls of the competent authorities of the exporting Party.

3. In undertaking an audit, a Party shall take into account relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

4. Prior to the commencement of an audit, the importing Party and exporting Party involved shall discuss the rationale and decide: the objectives and scope of the audit; the criteria or requirements against which the exporting Party will be assessed; and the itinerary and procedures for conducting the audit.

5. The auditing Party shall provide the audited Party the opportunity to comment on the findings of the audit and take any such comments into account before the auditing Party makes its conclusions and takes any action. The auditing Party shall provide a report setting out its conclusions in writing to the audited Party within a reasonable period of time.

6. A decision or action taken by the auditing Party as a result of the audit shall be supported by objective evidence and data that can be verified, taking into account the auditing Party's knowledge of, relevant experience with, and confidence in, the audited Party. This objective evidence and data shall be provided to the audited Party on request.

7. The costs incurred by the auditing Party shall be borne by the auditing Party, unless both Parties decide otherwise.

8. The auditing Party and audited Party shall each ensure that procedures are in place to prevent the disclosure of confidential information that is acquired during the audit process.

Article 7.11: Import Checks

1. Each Party shall ensure that its import programmes are based on the risks associated with importations, and the import checks are carried out without undue delay.

2. A Party shall make available to another Party, on request, information on its import procedures and its basis for determining the nature and frequency of import checks, including the factors it considers to determine the risks associated with importations.

3. A Party may amend the frequency of its import checks as a result of experience gained through import checks or as a result of actions or discussions provided for in this Chapter.

4. An importing Party shall provide to another Party, on request, information regarding the analytical methods, quality controls, sampling procedures and facilities that the importing Party uses to test a good. The importing Party shall ensure that any testing is conducted using appropriate and validated methods in a facility that operates under a quality assurance programme that is consistent with international laboratory standards. The importing Party shall maintain physical or electronic documentation regarding the identification, collection, sampling, transportation and storage of the test sample, and the analytical methods used on the test sample.

5. An importing Party shall ensure that its final decision in response to a finding of non-conformity with the importing Party's sanitary or phytosanitary measure, is limited to what is reasonable and necessary, and is rationally related to the available science.

6. If an importing Party prohibits or restricts the importation of a good of another Party on the basis of an adverse result of an import check, the importing Party shall provide a notification about the adverse result to at least one of the following: the importer or its agent; the exporter; the manufacturer; or the exporting Party.

7. When the importing Party provides a notification pursuant to paragraph 6, it shall:

(a) include:

(i) the reason for the prohibition or restriction;

(ii) the legal basis or authorisation for the action; and

(iii) information on the status of the affected goods and, if appropriate, on their disposition;

(b) do so in a manner consistent with its laws, regulations and requirements as soon as possible and no later than seven days after the date of the decision to prohibit or restrict, unless the good is seized by a customs administration; and

(c) if the notification has not already been provided through anothe channel, transmit the notification by electronic means, if practicable.

8. An importing Party that prohibits or restricts the importation of a good of another Party on the basis of an adverse result of an import check shall provide an opportunity for a review of the decision and consider any relevant information submitted to assist in the review. The review request and information should be submitted to the importing Party within a reasonable period of time.

9. If an importing Party determines that there is a significant, sustained or recurring pattern of non-conformity with a sanitary or phytosanitary measure, the importing Party shall notify the exporting Party of the non-conformity.

10. On request, an importing Party shall provide to the exporting Party available information on goods from the exporting Party that were found not to conform to a sanitary or phytosanitary measure of the importing Party.

Article 7.12: Certification

1. The Parties recognise that assurances with respect to sanitary or phytosanitary requirements may be provided through means other than certificates and that different systems may be capable of meeting the same sanitary or phytosanitary objective.

2. If an importing Party requires certification for trade in a good, the Party shall ensure that the certification requirement is applied, in meeting the Party's sanitary or phytosanitary objectives, only to the extent necessary to protect human, animal or plant life or health.

3. In applying certification requirements, an importing Party shall take into account relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

4. An importing Party shall limit attestations and information it requires on the certificates to essential information that is related to the sanitary or phytosanitary objectives of the importing Party.

5. An importing Party should provide to another Party, on request, the rationale for any attestations or information that the importing Party requires to be included on a certificate.

6. The Parties may agree to work cooperatively to develop model certificates to accompany specific goods traded between the Parties, taking into account relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

7. The Parties shall promote the implementation of electronic certification and other technologies to facilitate trade.

Article 7.13: Transparency

1. The Parties recognise the value of sharing information about their sanitary and phytosanitary measures on an ongoing basis, and of providing interested persons and other Parties with the opportunity to comment on their proposed sanitary and phytosanitary measures.

2. In implementing this Article, each Party shall take into account relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

3. A Party shall notify a proposed sanitary or phytosanitary measure that may have an effect on the trade of another Party, including any that conforms to international standards, guidelines or recommendations, by using the WTO SPS notification submission system as a means of notifying the other Parties.

4. Unless urgent problems of human, animal or plant life or health protection arise or threaten to arise, or the measure is of a trade-facilitating nature, a Party shall normally allow at least 60 days for interested persons and other Parties to provide written comments on the proposed measure after it makes the notification under paragraph 3. If feasible and appropriate, the Party should allow more than 60 days. The Party shall consider any reasonable request from an interested person or another Party to extend the comment period. On request of another Party, the Party shall respond to the written comments of the other Party in an appropriate manner.

5. The Party shall make available to the public, by electronic means in an official journal or on a website, the proposed sanitary or phytosanitary measure notified under paragraph 3, the legal basis for the measure, and the written comments or a summary of the written comments that the Party has received from the public on the measure.

6. If a Party proposes a sanitary or phytosanitary measure which does not conform to an international standard, guideline or recommendation, the Party shall provide to another Party, on request, and to the extent permitted by the confidentiality and privacy requirements of the Party's law, the relevant documentation that the Party considered in developing the proposed measure, including documented and objective scientific evidence that is rationally related to the measure, such as risk assessments, relevant studies and expert opinions.

7. A Party that proposes to adopt a sanitary or phytosanitary measure shall discuss with another Party, on request and if appropriate and feasible, any scientific or trade concerns that the other Party may raise regarding the proposed measure and the availability of alternative, less trade-restrictive approaches for achieving the objective of the measure.

8. Each Party shall publish, preferably by electronic means, notices of final sanitary or phytosanitary measures in an official journal or website.

9. Each Party shall notify the other Parties of final sanitary or phytosanitary measures through the WTO SPS notification submission system. Each Party shall ensure that the text or the notice of a final sanitary or phytosanitary measure specifies the date on which the measure takes effect and the legal basis for the measure. A Party shall also make available to another Party, on request, and to the extent permitted by the confidentiality and privacy requirements of the Party's law, significant written comments and relevant documentation considered to support the measure that were received during the comment period.

10. If a final sanitary or phytosanitary measure is substantively altered from the proposed measure, a Party shall also include in the notice of the final sanitary or phytosanitary measure that it publishes, an explanation of:

(a) the objective and rationale of the measure and how the measure advances that objective and rationale; and

(b) any substantive revisions that it made to the proposed measure.

11. An exporting Party shall notify the importing Party through the contact points referred to in Article 7.6 (Competent Authorities and Contact Points) in a timely and appropriate manner:

(a) if it has knowledge of a significant sanitary or phytosanitary risk related to the export of a good from its territory;

(b) of urgent situations where a change in animal or plant health status in the territory of the exporting Party may affect current trade;

(d) of new scientific findings of importance which affect the regulatory response with respect to food safety, pests or diseases; and

(e) of significant changes in food safety, pest or disease management, control or eradication policies or practices that may affect current trade.

12. If feasible and appropriate, a Party should provide an interval of more than six months between the date it publishes a final sanitary or phytosanitary measure and the date on which the measure takes effect, unless the measure is intended to address an urgent problem of human, animal or plant life or health protection or the measure is of a trade-facilitating nature.

13. A Party shall provide to another Party, on request, all sanitary or phytosanitary measures related to the importation of a good into that Party's territory.

Article 7.14: Emergency Measures

1. If a Party adopts an emergency measure that is necessary for the protection of human, animal or plant life or health, the Party shall promptly notify the other Parties of that measure through the primary representative and the relevant contact point referred to in Article 7.6 (Competent Authorities and Contact Points). The Party that adopts the emergency measure shall take into consideration any information provided by other Parties in response to the notification.

2. If a Party adopts an emergency measure, it shall review the scientific basis of that measure within six months and make available the results of the review to any Party on request. If the emergency measure is maintained after the review, because the reason for its adoption remains, the Party should review the measure periodically.

Article 7.15: Cooperation

1. The Parties shall explore opportunities for further cooperation, collaboration and information exchange between the Parties on sanitary and phytosanitary matters of mutual interest, consistent with this Chapter. Those opportunities may include trade facilitation initiatives and technical assistance. The Parties shall cooperate to facilitate the implementation of this Chapter.

2. The Parties shall cooperate and may jointly identify work on sanitary and phytosanitary matters with the goal of eliminating unnecessary obstacles to trade between the Parties.

Article 7.16: Information Exchange

A Party may request information from another Party on a matter arising under this Chapter. A Party that receives a request for information shall endeavour to provide available information to the requesting Party within a reasonable period of time, and if possible, by electronic means.

Article 7.17: Cooperative Technical Consultations

1. If a Party has concerns regarding any matter arising under this Chapter with another Party, it shall endeavour to resolve the matter by using the administrative procedures that the other Party's competent authority has available. If the relevant Parties have bilateral or other mechanisms available to address the matter, the Party raising the matter shall endeavour to resolve the matter through those mechanisms, if it considers that it is appropriate to do so. A Party may have recourse to the Cooperative Technical Consultations (CTC) set out in paragraph 2 at any time it considers that the continued use of the administrative procedures or bilateral or other mechanisms would not resolve the matter.

2. One or more Parties (requesting Party) may initiate CTC with another Party (responding Party) to discuss any matter arising under this Chapter that the requesting Party considers may adversely affect its trade by delivering a request to the primary representative of the responding Party. The request shall be in writing and identify the reason for the request, including a description of the requesting Party's concerns about the matter, and set out the provisions of this Chapter that relate to the matter.

3. Unless the requesting Party and the responding Party (the consulting Parties) agree otherwise, the responding Party shall acknowledge the request in writing within seven days of the date of its receipt.

4. Unless the consulting Parties agree otherwise, the consulting Parties shall meet within 30 days of the responding Party's acknowledgement of the request to discuss the matter identified in the request, with the aim of resolving the matter within 180 days of the request if possible. The meeting shall be in person or by electronic means.

5. The consulting Parties shall ensure the appropriate involvement of relevant trade and regulatory agencies in meetings held pursuant to this Article.

6. All communications between the consulting Parties in the course of CTC, as well as all documents generated for CTC, shall be kept confidential unless the consulting Parties agree otherwise and without prejudice to the rights and obligations of any Party under this Agreement, the WTO Agreement or any other international agreement to which it is a party.

7. The requesting Party may cease CTC proceedings under this Article and have recourse to dispute settlement under Chapter 28 (Dispute Settlement) if:

(a) the meeting referred to in paragraph 4 does not take place within 37 days of the date of the request, or such other timeframe as the consulting Parties may agree under paragraphs 3 and 4; or

(b) the meeting referred to in paragraph 4 has been held.

8. No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for a matter arising under this Chapter without first seeking to resolve the matter through CTC in accordance with this Article.

Article 7.18: Dispute Settlement

1. Unless otherwise provided in this Chapter, Chapter 28 (Dispute Settlement) shall apply to this Chapter, subject to the following:

(a) with respect to Article 7.8 (Equivalence), Article 7.10 (Audits) and Article 7.11 (Import Checks), Chapter 28 (Dispute Settlement) shall apply with respect to a responding Party as of one year after the date of entry into force of this Agreement for that Party; and

(b) with respect to Article 7.9 (Science and Risk Analysis), Chapter 28 (Dispute Settlement) shall apply with respect to a responding Party as of two years after the date of entry into force of this Agreement for that Party.

2. In a dispute under this Chapter that involves scientific or technical issues, a panel should seek advice from experts chosen by the panel in consultation with the Parties involved in the dispute. To this end, the panel may, if it deems appropriate, establish an advisory technical experts group, or consult the relevant international standard setting organisations, at the request of either Party to the dispute or on its own initiative.

CHAPTER 8

TECHNICAL BARRIERS TO TRADE

Article 8.1: Definitions

1. The definitions of the terms used in this Chapter contained in Annex 1 of the TBT Agreement, including the chapeau and explanatory notes of Annex 1, are incorporated into this Chapter and shall form part of this Chapter, mutatis mutandis.

2. In addition, for the purposes of this Chapter:

consular transactions means requirements that products of a Party intended for export to the territory of another Party must first be submitted to the supervision of the consul of the importing Party in the territory of the exporting Party for the purpose of obtaining consular invoices or consular visas for conformity assessment documentation;

marketing authorisation means the process or processes by which a Party approves or registers a product in order to authorise its marketing, distribution or sale in the Party's territory. The process or processes may be described in a Party's laws or regulations in various ways, including "marketing authorisation", "authorisation", "approval", "registration", "sanitary authorisation", "sanitary registration" and "sanitary approval" for a product. Marketing authorisation does not include notification procedures;

mutual recognition agreement means a binding government-to-government agreement for recognition of the results of conformity assessment conducted against the appropriate technical regulations or standards in one or more sectors, including government-to-government agreements to implement the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment of May 8, 1998 and the Electrical and Electronic Equipment Mutual Recognition Arrangement of July 7, 1999 and other agreements that provide for the recognition of conformity assessment conducted against appropriate technical regulations or standards in one or more sectors;

mutual recognition arrangement means an international or regional arrangement (including a multilateral recognition arrangement) between accreditation bodies recognising the equivalence of accreditation systems (based on peer review) or between conformity assessment bodies recognising the results of conformity assessment;

post-market surveillance means procedures taken by a Party after a product has been placed on its market to enable the Party to monitor or address compliance with the Party's domestic requirements for products;

TBT Agreement means the WTO Agreement on Technical Barriers to Trade, as may be amended; and

verify means to take action to confirm the veracity of individual conformity assessment results, such as requesting information from the conformity assessment body or the body that accredited, approved, licensed or otherwise recognised the conformity assessment body, but does not include requirements that subject a product to conformity assessment in the territory of the importing Party that duplicate the conformity assessment procedures already conducted with respect to the product in the territory of the exporting Party or a third party, except on a random or infrequent basis for the purpose of surveillance, or in response to information indicating non-compliance.

Article 8.2: Objective

The objective of this Chapter is to facilitate trade, including by eliminating unnecessary technical barriers to trade, enhancing transparency, and promoting greater regulatory cooperation and good regulatory practice.

Article 8.3: Scope

1. This Chapter shall apply to the preparation, adoption and application of all technical regulations, standards and conformity assessment procedures of central level of government bodies (and, where explicitly provided for, technical regulations, standards and conformity assessment procedures of government bodies at the level directly below that of the central level of government) that may affect trade in goods between the Parties, except as provided in paragraphs 4 and 5.

2. Each Party shall take reasonable measures that are within its authority to encourage observance by regional or local government bodies, as the case may be, on the level directly below that of the central level of government within its territory which are responsible for the preparation, adoption and application of technical regulations, standards and conformity assessment procedures, of Article 8.5 (International Standards, Guides and Recommendations), Article 8.6 (Conformity Assessment), Article 8.8 (Compliance Period for Technical Regulations and Conformity Assessment Procedures) and each of the Annexes to this Chapter.

3. All references in this Chapter to technical regulations, standards and conformity assessment procedures shall be construed to include any amendments to them and any addition to the rules or the product coverage of those technical regulations, standards and procedures, except amendments and additions of an insignificant nature.

4. This Chapter shall not apply to technical specifications prepared by a governmental entity for its production or consumption requirements. These specifications are covered by Chapter 15 (Government Procurement).

5. This Chapter shall not apply to sanitary and phytosanitary measures. These are covered by Chapter 7 (Sanitary and Phytosanitary Measures).

6. For greater certainty, nothing in this Chapter shall prevent a Party from adopting or maintaining technical regulations, standards or conformity assessment procedures in accordance with its rights and obligations under this Agreement, the TBT Agreement and any other relevant international agreement.

Article 8.4: Incorporation of Certain Provisions of the TBT Agreement

1. The following provisions of the TBT Agreement are incorporated into and made part of this Agreement, mutatis mutandis:

(a) Articles 2.1, 2.2, 2.4, 2.5, 2.9, 2.10, 2.11, 2.12;

(b) Articles 5.1, 5.2, 5.3, 5.4, 5.6, 5.7, 5.8, 5.9; and

2. No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for a dispute that exclusively alleges a violation of the provisions of the TBT Agreement incorporated under paragraph 1.

Article 8.5: International Standards, Guides and Recommendations

1. The Parties recognise the important role that international standards, guides and recommendations can play in supporting greater regulatory alignment, good regulatory practice and reducing unnecessary barriers to trade.

2. In this respect, and further to Articles 2.4 and 5.4 and Annex 3 of the TBT Agreement, to determine whether there is an international standard, guide or recommendation within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement, each Party shall apply the Decisions and Recommendations adopted by the WTO Committee on Technical Barriers to Trade Since 1 January 1995 (G/TBT/1/Rev.12), as may be revised, issued by the WTO Committee on Technical Barriers to Trade.

3. The Parties shall cooperate with each other, when feasible and appropriate, to ensure that international standards, guides and recommendations that are likely to become a basis for technical regulations and conformity assessment procedures do not create unnecessary obstacles to international trade.

Article 8.6: Conformity Assessment

1. Further to Article 6.4 of the TBT Agreement, each Party shall accord to conformity assessment bodies located in the territory of another Party treatment no less favourable than that it accords to conformity assessment bodies located in its own territory or in the territory of any other Party. In order to ensure that it accords such treatment, each Party shall apply the same or equivalent procedures, criteria and other conditions to accredit, approve, license or otherwise recognise conformity assessment bodies located in the territory of another Party that it may apply to conformity assessment bodies in its own territory.

2. Further to Article 6.4 of the TBT Agreement, if a Party maintains procedures, criteria or other conditions as set out in paragraph 1 and requires test results, certifications or inspections as positive assurance that a product conforms to a technical regulation or standard, the Party:

(a) shall not require the conformity assessment body that tests or certifies the product, or the conformity assessment body conducting an inspection, to be located within its territory;

(b) shall not impose requirements on conformity assessment bodies located outside its territory that would effectively require those conformity assessment bodies to operate an office in that Party's territory; and

(c) shall permit conformity assessment bodies in other Parties' territories to apply to the Party for a determination that they comply with any procedures, criteria and other conditions the Party requires to deem them competent or to otherwise approve them to test or certify the product or conduct an inspection.

3. Paragraphs 1 and 2 shall not preclude a Party from undertaking conformity assessment in relation to a specific product solely within specified government bodies located in its own territory or in another Party's territory, in a manner consistent with its obligations under the TBT Agreement.

4. If a Party undertakes conformity assessment under paragraph 3, and further to Articles 5.2 and 5.4 of the TBT Agreement concerning limitation on information requirements, the protection of legitimate commercial interests and the adequacy of review procedures, the Party shall, on the request of another Party, explain:

(a) how the information required is necessary to assess conformity and determine fees;

(b) how the Party ensures that the confidentiality of the information required is respected in a manner that ensures legitimate commercial interests are protected; and

(c) the procedure to review complaints concerning the operation of the conformity assessment procedure and to take corrective action when a complaint is justified.

5. Paragraphs 1 and 2(c) shall not preclude a Party from using mutual recognition agreements to accredit, approve, license or otherwise recognise conformity assessment bodies located outside its territory.

6. Nothing in paragraphs 1, 2 and 5 precludes a Party from verifying the results of conformity assessment procedures undertaken by conformity assessment bodies located outside its territory.

7. Further to paragraph 6, in order to enhance confidence in the continued reliability of conformity assessment results from the Parties' respective territories, a Party may request information on matters pertaining to conformity assessment bodies located outside its territory.

8. Further to Article 9.1 of the TBT Agreement, a Party shall consider adopting measures to approve conformity assessment bodies that have accreditation for the technical regulations or standards of the importing Party, by an accreditation body that is a signatory to an international or regional mutual recognition arrangement. 1 The Parties recognise that these arrangements can address the key considerations in approving conformity assessment bodies, including technical competence, independence, and the avoidance of conflicts of interest.

9. Further to Article 9.2 of the TBT Agreement no Party shall refuse to accept conformity assessment results from a conformity assessment body or take actions that have the effect of, directly or indirectly, requiring or encouraging another Party or person to refuse to accept conformity assessment results from a conformity assessment body because the accreditation body that accredited the conformity assessment body:

(a) operates in the territory of a Party where there is more than one accreditation body;

(b) is a non-governmental body;

(c) is domiciled in the territory of a Party that does not maintain a procedure for recognising accreditation bodies, provided that the accreditation body is recognised internationally, consistent with the provisions in paragraph 8;

(d) does not operate an office in the Party's territory; or

(e) is a for-profit entity.

10. Nothing in paragraph 9 prohibits a Party from refusing to accept conformity assessment results from a conformity assessment body on grounds other than those set out in paragraph 9 if that Party can substantiate those grounds for the refusal, and that refusal is not inconsistent with the TBT Agreement and this Chapter.

11. A Party shall publish, preferably by electronic means, any procedures, criteria and other conditions that it may use as the basis for determining whether conformity assessment bodies are competent to receive accreditation, approval, licensing or other recognition, including accreditation, approval, licensing or other recognition granted pursuant to a mutual recognition agreement.

12. If a Party:

(a) accredits, approves, licenses or otherwise recognises a body assessing conformity with a particular technical regulation or standard in its territory, and refuses to accredit, approve, license or otherwise recognise a body assessing conformity with that technical regulation or standard in the territory of another Party; or

(b) declines to use a mutual recognition arrangement, it shall, on request of the other Party, explain the reasons for its decision.

13. If a Party does not accept the results of a conformity assessment procedure conducted in the territory of another Party, it shall, on the request of the other Party, explain the reasons for its decision.

14. Further to Article 6.3 of the TBT Agreement, if a Party declines the request of another Party to enter into negotiations to conclude an agreement for mutual recognition of the results of each other's conformity assessment procedures, it shall, on request of that other Party, explain the reasons for its decision.

15. Further to Article 5.2.5 of the TBT Agreement any conformity assessment fees imposed by a Party shall be limited to the approximate cost of services rendered.

16. No Party shall require consular transactions, including related fees and charges, in connection with conformity assessment.

Article 8.7: Transparency

1. Each Party shall allow persons of another Party to participate in the development of technical regulations, standards and conformity assessment procedures by its central government bodies on terms no less favourable than those that it accords to its own persons.

2. Each Party is encouraged to consider methods to provide additional transparency in the development of technical regulations, standards and conformity assessment procedures, including through the use of electronic tools and public outreach or consultations.

3. If appropriate, each Party shall encourage non-governmental bodies in its territory to observe the obligations in paragraphs 1 and 2.

4. Each Party shall publish all proposals for new technical regulations and conformity assessment procedures and proposals for amendments to existing technical regulations and conformity assessment procedures, and all new final technical regulations and conformity assessment procedures and final amendments to existing technical regulations and conformity assessment procedures, of central government bodies.

5. A Party may determine the form of proposals for technical regulations and conformity assessment procedures, which may take the form of: policy proposals; discussion documents; summaries of proposed technical regulations and conformity assessment procedures; or the draft text of proposed technical regulations and conformity assessment procedures. Each Party shall ensure that its proposals contain sufficient detail about the likely content of the proposed technical regulations and conformity assessment procedures to adequately inform interested persons and other Parties about whether and how their trade interests might be affected.

6. Each Party shall publish preferably by electronic means, in a single official journal or website all proposals for new technical regulations and conformity assessment procedures and proposals for amendments to existing technical regulations and conformity assessment procedures, and all new final technical regulations and conformity assessment procedures and final amendments to existing technical regulations and conformity assessment procedures, of central government bodies, that a Party is required to notify or publish under the TBT Agreement or this Chapter, and that may have a significant effect on trade.

7. Each Party shall take such reasonable measures as may be available to it to ensure that all proposals for new technical regulations and conformity assessment procedures and proposals for amendments to existing technical regulations and conformity assessment procedures, and all new final technical regulations and conformity assessment procedures and final amendments to existing technical regulations and conformity assessment procedures, of regional or local governments, as the case may be, on the level directly below that of the central level of government, are published.

8. Each Party shall ensure that all new final technical regulations and conformity assessment procedures and final amendments to existing technical regulations and conformity assessment procedures, and to the extent practicable, all proposals for new technical regulations and conformity assessment procedures and proposals for amendments to existing technical regulations and conformity assessment procedures, of regional or local governments on the level directly below that of the central level of government are accessible through official websites or journals, preferably consolidated into a single website.

9. Each Party shall notify proposals for new technical regulations and conformity assessment procedures that are in accordance with the technical content of relevant international standards, guides or recommendations, if any, and that may have a significant effect on trade, according to the procedures established under Article 2.9 or 5.6 of the TBT Agreement.

10. Notwithstanding paragraph 9, if urgent problems of safety, health, environmental protection or national security arise or threaten to arise for a Party, that Party may notify a new technical regulation or conformity assessment procedure that is in accordance with the technical content of relevant international standards, guides or recommendations, if any, upon the adoption of that regulation or procedure, according to the procedures established under Article 2.10 or 5.7 of the TBT Agreement.

11. Each Party shall endeavour to notify proposals for new technical regulations and conformity assessment procedures of regional or local governments, as the case may be, on the level directly below that of the central level of government that are in accordance with the technical content of relevant international standards, guides and recommendations, if any, and that may have a significant effect on trade according to the procedures established under Article 2.9 or 5.6 of the TBT Agreement.

12. For the purposes of determining whether a proposed technical regulation or conformity assessment procedure may have a significant effect on trade and should be notified in accordance with Article 2.9, 2.10, 3.2, 5.6, 5.7 or 7.2 of the TBT Agreement or this Chapter, a Party shall consider, among other things, the relevant Decisions and Recommendations Adopted by the WTO Committee on Technical Barriers to Trade Since 1 January 1995 (G/TBT/1/Rev. 12), as may be revised.

13. A Party that publishes a notice and that files a notification in accordance with Article 2.9, 3.2, 5.6 or 7.2 of the TBT Agreement or this Chapter shall:

(a) include in the notification an explanation of the objectives of the proposal and how it would address those objectives; and

(b) transmit the notification and the proposal electronically to the other Parties through their enquiry points established in accordance with Article 10 of the TBT Agreement, at the same time as it notifies WTO Members.

14. Each Party shall normally allow 60 days from the date it transmits a proposal under paragraph 13 for another Party or an interested person of another Party to provide comments in writing on the proposal. A Party shall consider any reasonable request from another Party or an interested person of another Party to extend the comment period. A Party that is able to extend a time limit beyond 60 days, for example 90 days, is encouraged to do so.

15. Each Party is encouraged to provide sufficient time between the end of the comment period and the adoption of the notified technical regulation or conformity assessment procedure, for its consideration of, and preparation of responses to, the comments received.

16. Each Party shall endeavour to notify the final text of a technical regulation or conformity assessment procedure at the time the text is adopted or published, as an addendum to the original notification of the proposed measure filed under Article 2.9, 3.2, 5.6 or 7.2 of the TBT Agreement or this Chapter.

17. A Party that files a notification in accordance with Article 2.10 or 5.7 of the TBT Agreement and this Chapter shall, at the same time, transmit the notification and text of the technical regulation or conformity assessment procedure electronically to the other Parties through the enquiry points referred to in paragraph 13(b).

18. No later than the date of publication of a final technical regulation or conformity assessment procedure that may have a significant effect on trade, each Party shall, preferably electronically:

(a) make publicly available an explanation of the objectives and how the final technical regulation or conformity assessment procedure achieves them;

(b) provide as soon as possible, but no later than 60 days after receiving a request from another Party, a description of alternative approaches, if any, that the Party considered in developing the final technical regulation or conformity assessment procedure and the merits of the approach that the Party selected;5

(c) make publicly available the Party's responses to significant or substantive issues presented in comments received on the proposal for the technical regulation or conformity assessment procedure; and

(d) provide as soon as possible, but no later than 60 days after receiving a request from another Party, a description of significant revisions, if any, that the Party made to the proposal for the technical regulation or conformity assessment procedure, including those made in response to comments.

19. Further to paragraph J of Annex 3 of the TBT Agreement, each Party shall ensure that its central government standardising body's work programme, containing the standards it is currently preparing and the standards it has adopted, is available through the central government standardising body's website or the website referred to in paragraph 6.

Article 8.8: Compliance Period for Technical Regulations and Conformity Assessment Procedures

1. For the purposes of applying Articles 2.12 and 5.9 of the TBT Agreement the term "reasonable interval" means normally a period of not less than six months, except when this would be ineffective in fulfilling the legitimate objectives pursued by the technical regulation or by the requirements concerning the conformity assessment procedure.

2. If feasible and appropriate, each Party shall endeavour to provide an interval of more than six months between the publication of final technical regulations and conformity assessment procedures and their entry into force.

3. In addition to paragraphs 1 and 2, in setting a "reasonable interval" for a specific technical regulation or conformity assessment procedure, each Party shall ensure that it provides suppliers with a reasonable period of time, under the circumstances, to be able to demonstrate the conformity of their goods with the relevant requirements of the technical regulation or standard by the date of entry into force of the specific technical regulation or conformity assessment procedure. In doing so, each Party shall endeavour to take into account the resources available to suppliers.

Article 8.9: Cooperation and Trade Facilitation

1. Further to Articles 5, 6 and 9 of the TBT Agreement, the Parties acknowledge that a broad range of mechanisms exist to facilitate the acceptance of conformity assessment results. In this regard, a Party may:

(a) implement mutual recognition of the results of conformity assessment procedures performed by bodies located in its territory and another Party's territory with respect to specific technical regulations;

(b) recognise existing regional and international mutual recognition arrangements between or among accreditation bodies or conformity assessment bodies;

(d) designate conformity assessment bodies or recognise another Party's designation of conformity assessment bodies;

(e) unilaterally recognise the results of conformity assessment procedures performed in another Party's territory; and

(f) accept a supplier's declaration of conformity.

2. The Parties recognise that a broad range of mechanisms exist to support greater regulatory alignment and to eliminate unnecessary technical barriers to trade in the region, including:

(a) regulatory dialogue and cooperation to, among other things:

(i) exchange information on regulatory approaches and practices;

(ii) promote the use of good regulatory practices to improve the efficiency and effectiveness of technical regulations, standards and conformity assessment procedures;

(iii) provide technical advice and assistance, on mutually agreed terms and conditions, to improve practices related to the development, implementation and review of technical regulations, standards, conformity assessment procedures and metrology; or

(iv) provide technical assistance and cooperation, on mutually agreed terms and conditions, to build capacity and support the implementation of this Chapter;

(b) greater alignment of national standards with relevant international standards, except where inappropriate or ineffective;

(c) facilitation of the greater use of relevant international standards, guides and recommendations as the basis for technical regulations and conformity assessment procedures; and

(d) promotion of the acceptance of technical regulations of another Party as equivalent.

3. With respect to the mechanisms listed in paragraphs 1 and 2, the Parties recognise that the choice of the appropriate mechanism in a given regulatory context depends on a variety of factors, such as the product and sector involved, the volume and direction of trade, the relationship between Parties' respective regulators, the legitimate objectives pursued and the risks of non-fulfilment of those objectives.

4. The Parties shall strengthen their exchange and collaboration on mechanisms to facilitate the acceptance of conformity assessment results, to support greater regulatory alignment and to eliminate unnecessary technical barriers to trade in the region.

5. A Party shall, on request of another Party, give due consideration to any sector-specific proposal for cooperation under this Chapter.

6. Further to Article 2.7 of the TBT Agreement, a Party shall, on request of another Party, explain the reasons why it has not accepted a technical regulation of that Party as equivalent.

7. The Parties shall encourage cooperation between their respective organisations responsible for standardisation, conformity assessment, accreditation and metrology, whether they are public or private, with a view to addressing issues covered by this Chapter.

Article 8.10: Information Exchange and Technical Discussions

1. A Party may request another Party to provide information on any matter arising under this Chapter. A Party receiving a request under this paragraph shall provide that information within a reasonable period of time, and if possible, by electronic means.

2. A Party may request technical discussions with another Party with the aim of resolving any matter that arises under this Chapter.

3. For greater certainty, with respect to technical regulations or conformity assessment procedures of regional or local governments, as the case may be, on the level directly below that of the central government that may have a significant effect on trade, a Party may request technical discussions with another Party regarding those matters.

4. The relevant Parties shall discuss the matter raised within 60 days of the date of the request. If a requesting Party considers that the matter is urgent, it may request that any discussions take place within a shorter time frame. The responding Party shall give positive consideration to that request.

5. The Parties shall endeavour to resolve the matter as expeditiously as possible, recognising that the time required to resolve a matter will depend on a variety of factors, and that it may not be possible to resolve every matter through technical discussions.

6. Unless the Parties that participate in the technical discussions agree otherwise, the discussions and any information exchanged in the course of the discussions shall be confidential and without prejudice to the rights and obligations of the participating Parties under this Agreement, the WTO Agreement or any other agreement to which both Parties are party.

7. Requests for information or technical discussions and communications shall be conveyed through the respective contact points designated pursuant to Article 27.5 (Contact Points).

Article 8.11: Committee on Technical Barriers to Trade

1. The Parties hereby establish a Committee on Technical Barriers to Trade (Committee), composed of government representatives of each Party.

2. Through the Committee, the Parties shall strengthen their joint work in the fields of technical regulations, standards and conformity assessment procedures with a view to facilitating trade between the Parties.

3. The Committee's functions may include:

(a) monitoring the implementation and operation of this Chapter, including any other commitments agreed under this Chapter, and identifying any potential amendments to or interpretations of those commitments pursuant to Chapter 27 (Administrative and Institutional Provisions);

(b) monitoring any technical discussions on matters that arise under this Chapter requested pursuant to paragraph 2 of Article 8.10 (Information Exchange and Technical Discussions);

(c) deciding on priority areas of mutual interest for future work under this Chapter and considering proposals for new sector-specific initiatives or other initiatives;

(d) encouraging cooperation between the Parties in matters that pertains to this Chapter, including the development, review or modification of technical regulations, standards and conformity assessment procedures;

(e) encouraging cooperation between non-governmental bodies in the Parties' territories, as well as cooperation between governmental and non-governmental bodies in the Parties' territories in matters that pertains to this Chapter;

(f) facilitating the identification of technical capacity needs;

(g) encouraging the exchange of information between the Parties and their relevant non-governmental bodies, if appropriate, to develop common approaches regarding matters under discussion in non governmental, regional, plurilateral and multilateral bodies or systems that develop standards, guides, recommendations, policies or other procedures relevant to this Chapter;

(h) encouraging, on request of a Party, the exchange of information between the Parties regarding specific technical regulations, standards and conformity assessment procedures of non-Parties as well as systemic issues, with a view to fostering a common approach;

(i) taking any other steps the Parties consider will assist them in implementing this Chapter and the TBT Agreement;

(j) reviewing this Chapter in light of any developments under the TBT Agreement, and developing recommendations for amendments to this Chapter in light of those developments; and

(k) reporting to the Commission on the implementation and operation of this Chapter.

4. The Committee may establish working groups to carry out its functions.

5. To determine what activities the Committee will undertake, the Committee shall consider work that is being undertaken in other fora, with a view to ensuring that any activities undertaken by the Committee do not unnecessarily duplicate that work.

6. The Committee shall meet within one year of the date of entry into force of this Agreement and thereafter as decided by the Parties.

Article 8.12: Contact Points

1. Each Party shall designate and notify a contact point for matters arising under this Chapter, in accordance with Article 27.5 (Contact Points).

2. A Party shall promptly notify the other Parties of any change of its contact point or the details of the relevant officials.

3. The responsibilities of each contact point shall include:

(a) communicating with the other Parties' contact points, including facilitating discussions, requests and the timely exchange of information on matters arising under this Chapter;

(b) communicating with and coordinating the involvement of relevant government agencies, including regulatory authorities, in its territory on relevant matters pertaining to this Chapter;

(c) consulting and if appropriate, coordinating with interested persons in its territory on relevant matters pertaining to this Chapter; and

(d) carrying out any additional responsibilities specified by the Committee.

Article 8.13: Annexes

1. The scope of the Annexes on Pharmaceuticals, Cosmetics, Medical Devices and Proprietary Formulas for Prepackaged Foods and Food Additives is set out in each respective Annex. The other Annexes to this Chapter have the same scope as that set out in Article 8.3 (Scope).

2. The rights and obligations set out in each Annex to this Chapter shall apply only with respect to the sector specified in that Annex, and shall not affect any Party's rights or obligations under any other Annex.

3. Unless the Parties agree otherwise, no later than five years after the date of entry into force of this Agreement and thereafter at least once every five years, the Committee shall:

(a) review the implementation of the Annexes, with a view to strengthening or improving them and if appropriate, make recommendations to enhance alignment of the Parties' respective technical regulations, standards and conformity assessment procedures in the sectors covered by the Annexes; and

(b) consider whether the development of Annexes concerning other sectors would further the objectives of this Chapter or the Agreement and decide whether to recommend to the Commission that the Parties initiate negotiations to conclude Annexes covering those sectors.

ANNEX 8-A

WINE AND DISTILLED SPIRITS

1. This Annex shall apply to wine and distilled spirits.

2. For the purposes of this Annex:

container means any bottle, barrel, cask or other closed receptacle, irrespective of size or of the material from which it is made, used for the retail sale of wine or distilled spirits;

distilled spirits means a potable alcoholic distillate, including spirits of wine, whiskey, rum, brandy, gin, tequila, mezcal and all dilutions or mixtures of those spirits for consumption;

label means any brand, mark, pictorial or other descriptive matter that is written, printed, stencilled, marked, embossed or impressed on, or firmly affixed to the primary container of wine or distilled spirits;

oenological practices means winemaking materials, processes, treatments and techniques, but does not include labelling, bottling or packaging for final sale;

single field of vision means any part of the surface of a primary container, excluding its base and cap, that can be seen without having to turn the container;

supplier means a producer, importer, exporter, bottler or wholesaler; and

wine means a beverage that is produced by the complete or partial alcoholic fermentation exclusively of fresh grapes, grape must, or products derived from fresh grapes in accordance with oenological practices that the country in which the wine is produced authorises under its laws and regulations.

3. Each Party shall make information about its laws and regulations concerning wine and distilled spirits publicly available.

4. A Party may require a supplier to ensure that any statement required by that Party to be placed on a wine or distilled spirits label is:

(a) clear, specific, truthful, accurate and not misleading to the consumer; and

(b) legible to the consumer; and that such labels be firmly affixed.

5. If a Party requires a supplier to indicate information on a distilled spirits label, the Party shall permit the supplier to indicate that information on a supplementary label that is affixed to the distilled spirits container. Each Party shall permit a supplier to affix the supplementary label on the container of the imported distilled spirits after importation but prior to offering the product for sale in the Party's territory, and may require that the supplier affix the supplementary label prior to release from customs. For greater certainty, a Party may require that the information indicated on a supplementary label meet the requirements in paragraph 4.

6. Each Party shall permit the alcoholic content by volume indicated on a wine or distilled spirits label to be expressed by alcohol by volume (alc/vol), for example 12% alc/vol or alc12%vol, and to be indicated in percentage terms to a maximum of one decimal point, for example 12.1%.

7. Each Party shall permit suppliers to use the term "wine" as a product name. A Party may require a supplier to indicate additional information on a wine label concerning the type, category, class or classification of the wine.

8. With respect to wine labels, each Party shall permit the information set out in subparagraphs 10(a) through (d) to be presented in a single field of vision for a container of wine. If this information is presented in a single field of vision, then the Party's requirements with respect to placement of this information are

satisfied. A Party shall accept any of the information that appears outside a single field of vision if that information satisfies that Party's laws, regulations and requirements.

9. Notwithstanding paragraph 8, a Party may require net contents to be displayed on the principal display panel for a subset of less commonly used container sizes if specifically required by that Party's laws or regulations.

10. If a Party requires a wine label to indicate information other than:

(a) product name;

(b) country of origin;

(d) alcohol content,

it shall permit the supplier to indicate the information on a supplementary label affixed to the wine container. A Party shall permit the supplier to affix the supplementary label on the container of the imported wine after importation but prior to offering the product for sale in the Party's territory, and may require that the supplier affix the supplementary label prior to release from customs. For greater certainty, a Party may require that information on a supplementary label meet the requirements set out in paragraph 4.

11. For the purposes of paragraphs 4, 5 and 10, if there is more than one label on a container of imported wine or distilled spirits, a Party may require that each label be visible and not obscure mandatory information on another label.

12. If a Party has more than one official language, it may require that information on a wine or distilled spirits label appear in equal prominence in each official language.

13. Each Party shall permit a supplier to place a lot identification code on a wine or distilled spirits container, if the code is clear, specific, truthful, accurate and not misleading, and shall permit the supplier to determine:

(a) where to place the lot identification code on the container, provided that the code does not cover up essential information printed on the label; and

(b) the specific font size, readable phrasing and formatting for the code provided that the lot identification code is legible by physical or electronic means.

14. A Party may impose penalties for the removal or deliberate defacement of any lot identification code provided by the supplier and placed on the container.

15. No Party shall require a supplier to indicate any of the following information on a wine or distilled spirits container, labels or packaging:

(a) date of production or manufacture;

(b) date of expiration;

(d) sell by date,

except that a Party may require a supplier to indicate a date of minimum durability or expiration on products7 that could have a shorter date of minimum durability or expiration than would normally be expected by the consumer because of: their packaging or container, for example bag-in-box wines or individual serving size wines; or the addition of perishable ingredients.

16. No Party shall require a supplier to place a translation of a trademark or trade name on a wine or distilled spirits container, label or packaging.

17. No Party shall prevent imports of wine from other Parties solely on the basis that the wine label includes the following descriptors or adjectives describing the wine or relating to wine-making: chateau, classic, clos, cream, crusted/crusting, fine, late bottled vintage, noble, reserve, ruby, special reserve, solera, superior, sur lie, tawny, vintage or vintage character. This paragraph shall not apply to a Party that has entered into an agreement with another country or group of countries no later than February 2003 that requires the Party to restrict the use of such terms on labels of wine sold in its territory.

18. No Party shall require a supplier to disclose an oenological practice on a wine label or container except to meet a legitimate human health or safety objective with respect to that oenological practice.

19. Each Party shall permit wine to be labelled as Icewine, ice wine, ice-wine or a similar variation of those terms, only if the wine is made exclusively from grapes naturally frozen on the vine.

20. Each Party shall endeavour to base its quality and identity requirements for any specific type, category, class or classification of distilled spirits solely on minimum ethyl alcohol content and the raw materials, added ingredients and production procedures used to produce that specific type, category, class or classification of distilled spirits.

21. No Party shall require imported wine or distilled spirits to be certified by an official certification body of the Party in whose territory the wine or distilled spirits were produced or by a certification body recognised by the Party in whose territory the wine or distilled spirits were produced regarding:

(a) vintage, varietal and regional claims for wine; or

(b) raw materials and production processes for distilled spirits, except that the Party may require that wine or distilled spirits be certified regarding (a) or (b) if the Party in whose territory the wine or distilled spirits were produced requires that certification, that wine be certified regarding (a) if the Party has a reasonable and legitimate concern about a vintage, varietal or regional claim for wine, or that distilled spirits be certified regarding (b) if certification is necessary to verify claims such as age, origin or standards of identity.

22. If a Party deems that certification of wine is necessary to protect human health or safety or to achieve other legitimate objectives, that Party shall consider the Codex Alimentarius Guidelines for Design, Production, Issuance and Use of Generic Official Certificates (CAC/GL 38-2001), in particular the use of the generic model official certificate, as amended from time-to-time, concerning official and officially recognised certificates.

23. A Party shall normally permit a wine or distilled spirits supplier to submit any required certification, test result or sample only with the initial shipment of a particular brand, producer and lot. If a Party requires a supplier to submit a sample of the product for the Party's procedure to assess conformity with its technical regulation or standard, it shall not require a sample quantity larger than the minimum quantity necessary to complete the relevant conformity assessment procedure. Nothing in this provision precludes a Party from undertaking verification of test results or certification, for example, where the Party has information that a particular product may be non-compliant.

24. Unless problems of human health or safety arise or threaten to arise for a Party, a Party shall not normally apply any final technical regulation, standard or conformity assessment procedure to wine or distilled spirits that have been placed on the market in the Party's territory before the date on which the technical regulation, standard or conformity assessment procedure enters into force, provided that the products are sold within a period of time after the date the technical regulation, standard or conformity assessment procedure enters into force, stipulated by the authority responsible for that technical regulation, standard or conformity assessment procedure.

25. Each Party shall endeavour to assess other Parties' laws, regulations and requirements in respect of oenological practices, with the aim of reaching agreements that provide for the Parties' acceptance of each other's mechanisms for regulating oenological practices, if appropriate.

ANNEX 8-B

INFORMATION AND COMMUNICATIONS TECHNOLOGY PRODUCTS

Section A: Information and Communication Technology (ICT) Products that Use Cryptography

1. This section shall apply to information and communication technology (ICT) products that use cryptography.10

2. For the purposes of this section:

cryptography means the principles, means or methods for the transformation of data in order to hide its information content, prevent its undetected modification or prevent its unauthorised use; and is limited to the transformation of information using one or more secret parameters, for example, crypto variables, or associated key management;

encryption means the conversion of data (plaintext) into a form that cannot be easily understood without subsequent re-conversion (ciphertext) through the use of a cryptographic algorithm;

cryptographic algorithm or cipher means a mathematical procedure or formula for combining a key with plaintext to create a ciphertext; and

key means a parameter used in conjunction with a cryptographic algorithm that determines its operation in such a way that an entity with knowledge of the key can reproduce or reverse the operation, while an entity without knowledge of the key cannot.

3. With respect to a product that uses cryptography and is designed for commercial applications, no Party shall impose or maintain a technical regulation or conformity assessment procedure that requires a manufacturer or supplier of the product, as a condition of the manufacture, sale, distribution, import or use of the product, to:

(a) transfer or provide access to a particular technology, production process or other information, for example, a private key or other secret parameter, algorithm specification or other design detail, that is proprietary to the manufacturer or supplier and relates to the cryptography in the product, to the Party or a person in the Party's territory;

(b) partner with a person in its territory; or

(c) use or integrate a particular cryptographic algorithm or cipher, other than where the manufacture, sale, distribution, import or use of the product is by or for the government of the Party.

4. Paragraph 3 shall not apply to: (a) requirements that a Party adopts or maintains relating to access to networks that are owned or controlled by the government of that Party, including those of central banks; or (b) measures taken by a Party pursuant to supervisory, investigatory or examination authority relating to financial institutions or markets.

5. For greater certainty, this Section shall not be construed to prevent a Party's law enforcement authorities from requiring service suppliers using encryption they control to provide, pursuant to that Party's legal procedures, unencrypted communications.

Section B: Electromagnetic Compatibility of Information Technology Equipment (ITE) Products

1. This section shall apply to the electromagnetic compatibility of information technology equipment (ITE) products.

2. For the purposes of this section:

ITE product means any device or system or component thereof that has a primary function of entry, storage, display, retrieval, transmission, processing, switching or control (or combinations thereof) of data or telecommunication messages by means other than radio transmission or reception and, for greater certainty, excludes any product or component thereof that has a primary function of radio transmission or reception;

electromagnetic compatibility means the ability of an equipment or system to function satisfactorily in its electromagnetic environment without introducing intolerable electromagnetic disturbances with respect to any other device or system in that environment; and

supplier's declaration of conformity means an attestation by a supplier that a product meets a specified standard or technical regulation based on an evaluation of the results of conformity assessment procedures.

3. If a Party requires positive assurance that an ITE product meets a standard or technical regulation for electromagnetic compatibility, it shall accept a supplier's declaration of conformity.

4. The Parties recognise that a Party may require testing, for example, by an independent accredited laboratory, in support of a supplier's declaration of conformity, registration of the supplier's declaration of conformity, or submission of evidence necessary to support the supplier's declaration of conformity.

5. Nothing in paragraph 3 shall prevent a Party from verifying a supplier's declaration of conformity.

6. Paragraph 3 shall not apply with respect to a product:

(a) that a Party regulates as a medical device, a medical device system or a component of a medical device or medical device system; or

(b) for which the Party demonstrates that there is a high risk that the product will cause harmful electromagnetic interference with a safety or radio transmission or reception device or system.

Section C: Regional Cooperation Activities on Telecommunications Equipment

1. This section shall apply to telecommunications equipment.

2. The Parties are encouraged to implement the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment of May 8, 1998 (MRA-TEL) and the APEC Mutual Recognition Arrangement for Equivalence of Technical Requirements of October 31, 2010 (MRA-ETR) with respect to each other or other arrangements to facilitate trade in telecommunications equipment.

ANNEX 8-C

PHARMACEUTICALS

1. This Annex shall apply to the preparation, adoption and application of technical regulations, standards, conformity assessment procedures, marketing authorisation and notification procedures of central government bodies that may affect trade in pharmaceutical products between the Parties. This Annex shall not apply to a technical specification prepared by a governmental entity for its production or consumption requirements or a sanitary or phytosanitary measure.

2. A Party's obligations under this Annex shall apply to any product that the Party defines as a pharmaceutical product pursuant to paragraph 3. For the purposes of this Annex, preparation of a technical regulation, standard, conformity assessment procedure or marketing authorisation includes, as appropriate, the evaluation of the risks involved, the need to adopt a measure to address those risks, the review of relevant scientific or technical information, and the consideration of the characteristics or design of alternative approaches.

3. Each Party shall define the scope of the products subject to its laws and regulations for pharmaceutical products in its territory and make that information publicly available.

4. Recognising that each Party is required to define the scope of products covered by this Annex pursuant to paragraph 3, for the purposes of this Annex, a pharmaceutical product may include a human drug or biologic that is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of a disease or condition in humans, or intended to affect the structure or any function of the body of a human.

5. Each Party shall identify the agency or agencies that are authorised to regulate pharmaceutical products in its territory and make that information publicly available.

6. If more than one agency is authorised to regulate pharmaceutical products within the territory of a Party, that Party shall examine whether there is overlap or duplication in the scope of those authorities and take reasonable measures to eliminate unnecessary duplication of any regulatory requirements resulting for pharmaceutical products.

7. The Parties shall seek to collaborate through relevant international initiatives, such as those aimed at harmonisation, as well as regional initiatives that support those international initiatives, as appropriate, to improve the alignment of their respective regulations and regulatory activities for pharmaceutical products.

8. When developing or implementing regulations for marketing authorisation of pharmaceutical products, each Party shall consider relevant scientific or technical guidance documents developed through international collaborative efforts. Each Party is encouraged to consider regionally-developed scientific or technical guidance documents that are aligned with international efforts.

9. Each Party shall observe the obligations set out in Articles 2.1 and 5.1.1 of the TBT Agreement with respect to a marketing authorisation, notification procedure or elements of either that the Party prepares, adopts or applies for pharmaceutical products and that do not fall within the definition of a technical regulation or conformity assessment procedure.

10. Each Party recognises that the applicant is responsible for providing sufficient information to a Party for it to make a regulatory determination on a pharmaceutical product.

11. Each Party shall make its determination whether to grant marketing authorisation for a specific pharmaceutical product on the basis of:

(a) information, including, if appropriate, pre-clinical and clinical data, on safety and efficacy;

(b) information on the manufacturing quality of the product;

(d) other matters that may directly affect the health or safety of the user of the product.

To this end, no Party shall require sale data or related financial data concerning the marketing of the product as part of the determination. Further, each Party shall endeavour to not require pricing data as part of the determination.

12. Each Party shall administer any marketing authorisation process that it maintains for pharmaceutical products in a timely, reasonable, objective, transparent and impartial manner, and identify and manage any conflicts of interest in order to mitigate any associated risks.

(a) Each Party shall provide an applicant that requests marketing authorisation for a pharmaceutical product with its determination within a reasonable period of time. The Parties recognise that the reasonable period of time required to make a marketing authorisation determination may be affected by factors such as the novelty of a product or regulatory implications that may arise.

(b) If a Party determines that a marketing authorisation application for a pharmaceutical product under review in its jurisdiction has deficiencies that have led or will lead to a decision not to authorise its marketing, that Party shall inform the applicant that requests marketing authorisation and provide reasons why the application is deficient.

(c) If a Party requires a marketing authorisation for a pharmaceutical product, the Party shall ensure that any marketing authorisation determination is subject to an appeal or review process that may be invoked at the request of the applicant. For greater certainty, the Party may maintain an appeal or review process that is either internal to the regulatory body responsible for the marketing authorisation determination, such as a dispute resolution or review process, or external to the regulatory body.

(d) If a Party requires periodic re-authorisation for a pharmaceutical product that has previously received marketing authorisation from the Party, the Party shall allow the pharmaceutical product to remain on its market under the conditions of the previous marketing authorisation pending a decision on the periodic reauthorisation, unless the Party identifies a significant health or safety concern.

13. When developing regulatory requirements for pharmaceutical products, a Party shall consider its available resources and technical capacity in order to minimise the implementation of requirements that could:

(a) inhibit the effectiveness of procedures for ensuring the safety, efficacy or manufacturing quality of pharmaceutical products; or

(b) lead to substantial delays in marketing authorisation regarding pharmaceutical products for sale on that Party's market.

14. No Party shall require that a pharmaceutical product receive marketing authorisation from a regulatory authority in the country of manufacture as a condition for the product to receive marketing authorisation from that Party.

15. For greater certainty, a Party may accept a prior marketing authorisation that is issued by another regulatory authority as evidence that a product may meet its own requirements. If there are regulatory resource limitations, a Party may require a marketing authorisation from one of a number of reference countries to be established and made public by that Party as a condition for the product's marketing authorisation from that Party.

16. For a marketing authorisation application for a pharmaceutical product, each Party shall review the safety, efficacy and manufacturing quality information submitted by the applicant requesting marketing authorisation in a format that is consistent with the principles found in the International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use Common Technical Document (CTD), as may be amended, recognising that the CTD may not address all aspects relevant to a Party's determination to approve marketing authorisation for a particular product.

17. The Parties shall seek to improve their collaboration on pharmaceutical inspection, and to this end, each Party shall, with respect to the inspection of a pharmaceutical product within the territory of another Party:

(a) notify the other Party prior to conducting an inspection, unless there are reasonable grounds to believe that doing so could prejudice the effectiveness of the inspection;

(b) if practicable, permit representatives of the other Party's competent authority to observe that inspection; and

(c) notify the other Party of its findings as soon as possible following the inspection and, if the findings will be publicly released, no later than a reasonable time before release. The inspecting Party is not required to notify the other Party of its findings if it considers that those findings are confidential and should not be disclosed.

18. The Parties shall seek to apply relevant scientific guidance documents that are developed through international collaborative efforts with respect to inspection of pharmaceuticals.

ANNEX 8-D

COSMETICS

1. This Annex shall apply to the preparation, adoption and application of technical regulations, standards, conformity assessment procedures, marketing authorisation and notification procedures of central government bodies that may affect trade in cosmetic products between the Parties. This Annex shall not apply to a technical specification prepared by a governmental entity for its production or consumption requirements or a sanitary or phytosanitary measure.

2. A Party's obligations under this Annex shall apply to any product that the Party defines as a cosmetic product pursuant to paragraph 3. For the purposes of this Annex, preparation of a technical regulation, standard, conformity assessment procedure or marketing authorisation includes, as appropriate, the evaluation of the risks involved, the need to adopt a measure to address those risks, the review of relevant scientific or technical information, and the consideration of the characteristics or design of alternative approaches.

3. Each Party shall define the scope of the products subject to its laws and regulations for cosmetic products in its territory and make that information publicly available.

4. Recognising that each Party is required to define the scope of products covered by this Annex pursuant to paragraph 3, for the purposes of this Annex, a cosmetic product may include a product that is intended to be rubbed, poured, sprinkled, sprayed on or otherwise applied to the human body including the mucous membrane of the oral cavity and teeth, to cleanse, beautify, protect, promote attractiveness or alter the appearance.

5. Each Party shall identify the agency or agencies that are authorised to regulate cosmetic products in its territory and make that information publicly available.

6. If more than one agency is authorised to regulate cosmetic products within the territory of a Party, that Party shall examine whether there is overlap or duplication in the scope of those authorities and eliminate unnecessary duplication of any regulatory requirements resulting for cosmetic products.

7. The Parties shall seek to collaborate through relevant international initiatives, such as those aimed at harmonisation, as well as regional initiatives that support of those international initiatives, as appropriate, to improve the alignment of their respective regulations and regulatory activities for cosmetic products.

8. When developing or implementing regulations for cosmetic products, each Party shall consider relevant scientific or technical guidance documents developed through international collaborative efforts. Each Party is encouraged to consider regionally-developed scientific or technical guidance documents that are aligned with international efforts.

9. Each Party shall observe the obligations set out in Articles 2.1 and 5.1.1 of the TBT Agreement with respect to a marketing authorisation, notification procedure or elements of either that the Party prepares, adopts or applies for cosmetic products and that do not fall within the definition of a technical regulation or conformity assessment procedure.

10. Each Party shall ensure that it applies a risk-based approach to the regulation of cosmetic products.

11. In applying a risk-based approach in regulating cosmetic products, each Party shall take into account that cosmetic products are generally expected to pose less potential risk to human health or safety than medical devices or pharmaceutical products.

12. No Party shall conduct separate marketing authorisation processes or sub processes for cosmetic products that differ only with respect to shade extensions or fragrance variants, unless a Party identifies a significant human health or safety concern.

13. Each Party shall administer any marketing authorisation process that it maintains for cosmetics products in a timely, reasonable, objective, transparent and impartial manner, and identify and manage any conflicts of interest in order to mitigate any associated risks.

(a) If a Party requires marketing authorisation for a cosmetic product, that Party shall provide an applicant with its determination within a reasonable period of time.

(b) If a Party requires marketing authorisation for a cosmetic product and it determines that a marketing authorisation application for a cosmetic product under review in its jurisdiction has deficiencies that have led or will lead to a decision not to authorise its marketing, that Party shall inform the applicant that requests marketing authorisation and provide reasons why the application is deficient.

(c) If a Party requires a marketing authorisation for a cosmetic product, the Party shall ensure that any marketing authorisation determination is subject to an appeal or review process that may be invoked at the request of the applicant. For greater certainty, the Party may maintain an appeal or review process that is either internal to the regulatory body responsible for the marketing authorisation determination, such as a dispute resolution or review process, or external to the regulatory body.

(d) If a Party has granted marketing authorisation for a cosmetic product in its territory, the Party shall not subject the product to periodic re-assessment procedures as a condition of retaining its marketing authorisation.

14. If a Party maintains a marketing authorisation process for cosmetic products, that Party shall consider replacing this process with other mechanisms such as voluntary or mandatory notification and post-market surveillance.

15. When developing regulatory requirements for cosmetic products, a Party shall consider its available resources and technical capacity in order to minimise the implementation of requirements that could:

(a) inhibit the effectiveness of procedures for ensuring the safety or manufacturing quality of cosmetic products; or

(b) lead to substantial delays in marketing authorisation regarding cosmetic products for sale on that Party's market.

16. No Party shall require the submission of marketing information, including with respect to prices or cost, as a condition for the product receiving marketing authorisation.

17. No Party shall require a cosmetic product to be labelled with a marketing authorisation or notification number.

18. No Party shall require that a cosmetic product receive marketing authorisation from a regulatory authority in the country of manufacture, as a condition for the product receiving marketing authorisation from the Party. For greater certainty, this provision does not prohibit a Party from accepting a prior marketing authorisation issued by another regulatory authority as evidence that a product may meet its own requirements.

19. No Party shall require that a cosmetic product be accompanied by a certificate of free sale as a condition of marketing, distribution or sale in the Party's territory.

20. If a Party requires a manufacturer or supplier of a cosmetic product to indicate information on the product's label, the Party shall permit the manufacturer or supplier to indicate the required information by relabelling the product or by using supplementary labelling of the product in accordance with the Party's domestic requirements after importation but prior to offering the product for sale or supply in the Party's territory.

21. No Party shall require that a cosmetic product be tested on animals to determine the safety of that cosmetic product, unless there is no validated alternative method available to assess safety. A Party may, however, consider the results of animal testing to determine the safety of a cosmetic product.

22. If a Party prepares or adopts good manufacturing practice guidelines for cosmetic products, it shall use relevant international standards for cosmetic products, or the relevant parts of them, as a basis for its guidelines unless those international standards or relevant parts would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued.

23. Each Party shall endeavour to share, subject to its laws and regulations, information from post-market surveillance of cosmetic products.

24. Each Party shall endeavour to share information on its findings or the findings of its relevant institutions regarding cosmetic ingredients.

25. Each Party shall endeavour to avoid re-testing or re-evaluating cosmetic products that differ only with respect to shade extensions or fragrance variants, unless conducted for human health or safety purposes.

ANNEX 8-E

MEDICAL DEVICES

1. This Annex shall apply to the preparation, adoption and application of technical regulations, standards, conformity assessment procedures, marketing authorisation and notification procedures of central government bodies that may affect trade in medical devices between the Parties. This Annex shall not apply to a technical specification prepared by a governmental entity for its production or consumption requirements or a sanitary or phytosanitary measure.

2. A Party's obligations under this Annex shall apply to any product that the Party defines as a medical device pursuant to paragraph 3. For the purposes of this Annex, preparation of a technical regulation, standard, conformity assessment procedure or marketing authorisation includes, as appropriate the evaluation of the risks involved, the need to adopt a measure to address those risks, the review of relevant scientific or technical information, and the consideration of the characteristics or design of alternative approaches.

3. Each Party shall define the scope of the products subject to its laws and regulations for medical devices in its territory and make that information publicly available.

4. Recognising that each Party is required to define the scope of products covered by this Annex pursuant to paragraph 3, each Party should define the scope of products subject to its laws and regulations for medical devices in a manner that is consistent with the meaning assigned to the term "medical device" in the Definition of the Terms ‘Medical Device' and ‘In Vitro Diagnostic (IVD) Medical Device' endorsed by the Global Harmonization Task Force on May 16, 2012, as may be amended.

5. Each Party shall identify the agency or agencies that are authorised to regulate medical devices in its territory and make that information publicly available.

6. If more than one agency is authorised to regulate medical devices within the territory of a Party, that Party shall examine whether there is overlap or duplication in the scope of those authorities and to take reasonable measures to eliminate unnecessary duplication of any regulatory requirements resulting for medical devices.

8. When developing or implementing regulations for marketing authorisation of medical devices, each Party shall consider relevant scientific or technical guidance documents developed through international collaborative efforts. Each Party is encouraged to consider regionally-developed scientific or technical guidance documents that are aligned with international efforts.

9. Each Party shall observe the obligations set out in Articles 2.1 and 5.1.1 of the TBT Agreement with respect to a marketing authorisation, notification procedure or elements of either that the Party prepares, adopts or applies for medical devices and that do not fall within the definition of a technical regulation or conformity assessment procedure.

10. Recognising that different medical devices pose different levels of risk, each Party shall classify medical devices based on risk, taking into account scientifically relevant factors. Each Party shall ensure that, when it regulates a medical device, it regulates the device consistent with the classification the Party has assigned to that device.

11. Each Party recognises that the applicant is responsible for providing sufficient information to a Party for it to make a regulatory determination on a medical device.

12. Each Party shall make a determination whether to grant marketing authorisation for a specific medical device on the basis of:

(a) information, including, if appropriate, clinical data, on safety and efficacy;

(b) information on performance, design and manufacturing quality of the device;

(d) other matters that may directly affect the health or safety of the user of the device.

To this end, no Party shall require sale data, pricing or related financial data concerning the marketing of the medical device.

13. Each Party shall administer any marketing authorisation process that it maintains for medical devices in a timely, reasonable, objective, transparent and impartial manner, and identify and manage any conflicts of interest in order to mitigate any associated risks.

(a) Each Party shall provide an applicant that requests marketing authorisation for a medical device with its determination within a reasonable period of time. The Parties recognise that the reasonable period of time required to make a marketing authorisation determination may be affected by factors such as the novelty of a device or regulatory implications that may arise.

(b) If a Party determines that a marketing authorisation application for a medical device under review in its jurisdiction has deficiencies that have led or will lead to a decision not to authorise its marketing, that Party shall inform the applicant that requests marketing authorisation and provide reasons why the application is deficient.

(c) If a Party requires marketing authorisation for a medical device, the Party shall ensure that any marketing authorisation determination is subject to an appeal or review process that may be invoked at the request of the applicant. For greater certainty, the Party may maintain an appeal or review process that is either internal to the regulatory body responsible for the marketing authorisation determination, such as a dispute resolution or review process, or external to the regulatory body.

(d) If a Party requires periodic re-authorisation for a medical device that has previously received marketing authorisation from the Party, the Party shall allow the medical device to remain on its market under the conditions of the previous marketing authorisation pending a decision on the periodic re-authorisation, unless a Party identifies a significant health or safety concern.

14. When developing regulatory requirements for medical devices, a Party shall consider its available resources and technical capacity in order to minimise the implementation of requirements that could:

(a) inhibit the effectiveness of procedures for ensuring the safety, efficacy or manufacturing quality of medical devices; or

(b) lead to substantial delays in marketing authorisation regarding medical devices for sale on that Party's market.

15. No Party shall require that a medical device receive a marketing authorisation from a regulatory authority in the country of manufacture as a condition for the medical device to receive marketing authorisation from that Party.

16. For greater certainty, a Party may accept a prior marketing authorisation that is issued by another regulatory authority as evidence that a medical device may meet its own requirements. If there are regulatory resource limitations, a Party may require a marketing authorisation from one of a number of reference countries established and made public by that Party as a condition for the medical device's marketing authorisation from that Party.

17. If a Party requires a manufacturer or supplier of a medical device to indicate information on the product's label, the Party shall permit the manufacturer or supplier to indicate the required information by relabelling the product or by using supplementary labelling of the device in accordance with the Party's domestic requirements after importation but prior to offering the device for sale or supply in the Party's territory.

ANNEX 8-F

PROPRIETARY FORMULAS FOR PREPACKAGED FOODS AND FOOD ADDITIVES

1. This Annex shall apply to the preparation, adoption and application of technical regulations and standards of central government bodies that are related to prepackaged foods and food additives. This Annex shall not apply to technical specifications prepared by a governmental entity for its production or consumption requirements or sanitary and phytosanitary measures.

2. For the purposes of this Annex, the terms "food," "food additive" and "prepackaged" have the same meanings as set out in the Codex General Standard for the Labelling of Pre-Packaged Food (CODEX STAN 1-1985) and the Codex General Standard for the Labelling of Food Additives When Sold as Such

(CODEX STAN 107-1981), as may be amended.

3. When gathering information relating to proprietary formulas in the preparation, adoption and application of technical regulations and standards, each Party shall:

(a) ensure that its information requirements are limited to what is necessary to achieve its legitimate objective; and

(b) ensure that the confidentiality of information about products originating in the territory of another Party arising from, or supplied in connection with, the preparation, adoption, and application of technical regulations and standards, is respected in the same way as for domestic products and in a manner that protects legitimate commercial interests.

If a Party gathers confidential information relating to proprietary formulas, it may use that information in the course of administrative and judicial proceedings in accordance with its law, provided that the Party has procedures to maintain the confidentiality of the information in the course of those proceedings.

4. Nothing in paragraph 3 shall prevent a Party from requiring ingredients to be listed on labels consistent with CODEX STAN 1-1985 and CODEX STAN 107-1981, as may be amended, except when those standards would be an ineffective or inappropriate means for the fulfilment of a legitimate objective.

ANNEX 8-G

ORGANIC PRODUCTS

1. This Annex shall apply to a Party if that Party is developing or maintains technical regulations, standards or conformity assessment procedures that relate to the production, processing or labelling of products as organic for sale or distribution within its territory.

2. Each Party is encouraged to take steps to:

(a) exchange information on matters that relate to organic production, certification of organic products, and related control systems; and

(b) cooperate with other Parties to develop, improve and strengthen international guidelines, standards and recommendations that relate to trade in organic products.

3. If a Party maintains a requirement that relates to the production, processing or labelling of products as organic, it shall enforce that requirement.

4. A Party is encouraged to consider, as expeditiously as possible, a request from another Party for recognition or equivalence of a technical regulations, standards or conformity assessment procedures that relates to the production, processing, or labelling of products of another Party as organic. Each Party is encouraged to accept as equivalent or recognise the technical regulations, standards or conformity assessment procedures that relate to the production, processing or labelling of products of that other Party as organic, if the Party is satisfied that the technical regulations, standards or conformity assessment procedures of that other Party adequately fulfils the objectives of the Party's technical regulations, standards or conformity assessment procedures. If a Party does not accept as equivalent or recognise the technical regulations, standards or conformity assessment procedures that relate to the production, processing, or labelling of products of that other Party as organic, it shall, on request of that other Party, explain its reasons.

5. Each Party is encouraged to participate in technical exchanges to support improvement and greater alignment of technical regulations, standards or conformity assessment procedures that relate to the production, processing or labelling of products as organic.

CHAPTER 9

INVESTMENT

Section A

Article 9.1: Definitions

For the purposes of this Chapter:

Centre means the International Centre for Settlement of Investment Disputes (ICSID) established by the ICSID Convention;

claimant means an investor of a Party that is a party to an investment dispute with another Party. If that investor is a natural person, who is a permanent resident of a Party and a national of another Party, that natural person may not submit a claim to arbitration against that latter Party;

disputing parties means the claimant and the respondent;

disputing party means either the claimant or the respondent;

enterprise means an enterprise as defined in Article 1.3 (General Definitions), and a branch of an enterprise;

enterprise of a Party means an enterprise constituted or organised under the law of a Party, or a branch located in the territory of a Party and carrying out business activities there;

freely usable currency means "freely usable currency" as determined by the International Monetary Fund under its Articles of Agreement;

ICC Arbitration Rules means the arbitration rules of the International Chamber of Commerce;

ICSID Additional Facility Rules means the Rules Governing the Additional Facility for the Administration of Proceedings by the Secretariat of the International Centre for Settlement of Investment Disputes;

ICSID Convention means the Convention on the Settlement of Investment Disputes between States and Nationals of other States, done at Washington, March 18, 1965;

Inter-American Convention means the Inter-American Convention on International Commercial Arbitration, done at Panama, January 30, 1975;

investment means every asset that an investor owns or controls, directly or indirectly, that has the characteristics of an investment, including such characteristics as the commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk. Forms that an investment may take include:

(a) an enterprise;

(b) shares, stock and other forms of equity participation in an enterprise;

(d) futures, options and other derivatives;

(e) turnkey, construction, management, production, concession, revenue-sharing and other similar contracts;

(f) intellectual property rights;

(g) licences, authorisations, permits and similar rights conferred pursuant to the Party's law; and

(h) other tangible or intangible, movable or immovable property, and related property rights, such as leases, mortgages, liens and pledges, but investment does not mean an order or judgment entered in a judicial or administrative action.

investment agreement means a written agreement5 that is concluded and takes effect after the date of entry into force of this Agreement6 between an authority at the central level of government of a Party and a covered investment or an investor of another Party and that creates an exchange of rights and obligations, binding on both parties under the law applicable under Article 9.25.2 (Governing Law), on which the covered investment or the investor relies in establishing or acquiring a covered investment other than the written agreement itself, and that grants rights to the covered investment or investor:

(a) with respect to natural resources that a national authority controls, such as oil, natural gas, rare earth minerals, timber, gold, iron ore and other similar resources, including for their exploration, extraction, refining, transportation, distribution or sale;

(b) to supply services on behalf of the Party for consumption by the general public for: power generation or distribution, water treatment or distribution, telecommunications, or other similar services supplied on behalf of the Party for consumption by the general public; or

(c) to undertake infrastructure projects, such as the construction of roads, bridges, canals, dams or pipelines or other similar projects; provided, however, that the infrastructure is not for the exclusive or predominant use and benefit of the government;

investment authorisation10 means an authorisation that the foreign investment authority of a Party grants to a covered investment or an investor of another Party;

investor of a non-Party means, with respect to a Party, an investor that attempts to make, is making, or has made an investment in the territory of that Party, that is not an investor of a Party;

investor of a Party means a Party, or a national or an enterprise of a Party, that attempts to make, is making, or has made an investment in the territory of another Party;

LCIA Arbitration Rules means the arbitration rules of the London Court of International Arbitration;

negotiated restructuring means the restructuring or rescheduling of a debt instrument that has been effected through (a) a modification or amendment of that debt instrument, as provided for under its terms, or (b) a comprehensive debt exchange or other similar process in which the holders of no less than 75 per cent of the aggregate principal amount of the outstanding debt under that debt instrument have consented to the debt exchange or other process;

New York Convention means the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York, June 10, 1958;

non-disputing Party means a Party that is not a party to an investment dispute;

protected information means confidential business information or information that is privileged or otherwise protected from disclosure under a Party's law, including classified government information;

respondent means the Party that is a party to an investment dispute; Secretary-General means the Secretary-General of ICSID; and

UNCITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on International Trade Law.

Article 9.2: Scope

1. This Chapter shall apply to measures adopted or maintained by a Party relating to:

(a) investors of another Party;

(b) covered investments; and

(c) with respect to Article 9.10 (Performance Requirements) and Article 9.16 (Investment and Environmental, Health and other Regulatory Objectives), all investments in the territory of that Party.

2. A Party's obligations under this Chapter shall apply to measures adopted or maintained by:

(a) the central, regional or local governments or authorities of that Party; and

(b) any person, including a state enterprise or any other body, when it exercises any governmental authority delegated to it by central, regional or local governments or authorities of that Party.13

3. For greater certainty, this Chapter shall not bind a Party in relation to an act or fact that took place or a situation that ceased to exist before the date of entry into force of this Agreement for that Party.

Article 9.3: Relation to Other Chapters

1. In the event of any inconsistency between this Chapter and another Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency.

2. A requirement of a Party that a service supplier of another Party post a bond or other form of financial security as a condition for the cross-border supply of a service does not of itself make this Chapter applicable to measures adopted or maintained by the Party relating to such cross-border supply of the service. This Chapter shall apply to measures adopted or maintained by the Party relating to the posted bond or financial security, to the extent that the bond or financial security is a covered investment.

3. This Chapter shall not apply to measures adopted or maintained by a Party to the extent that they are covered by Chapter 11 (Financial Services).

Article 9.4: National Treatment14

1. Each Party shall accord to investors of another Party treatment no less favourable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.

2. Each Party shall accord to covered investments treatment no less favourable than that it accords, in like circumstances, to investments in its territory of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.

3. For greater certainty, the treatment to be accorded by a Party under paragraphs 1 and 2 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment accorded, in like circumstances, by that regional level of government to investors, and to investments of investors, of the Party of which it forms a part.

Article 9.5: Most-Favoured-Nation Treatment

1. Each Party shall accord to investors of another Party treatment no less favourable than that it accords, in like circumstances, to investors of any other Party or of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.

2. Each Party shall accord to covered investments treatment no less favourable than that it accords, in like circumstances, to investments in its territory of investors of any other Party or of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments.

3. For greater certainty, the treatment referred to in this Article does not encompass international dispute resolution procedures or mechanisms, such as those included in Section B (Investor-State Dispute Settlement).

Article 9.6: Minimum Standard of Treatment

1. Each Party shall accord to covered investments treatment in accordance with applicable customary international law principles, including fair and equitable treatment and full protection and security.

2. For greater certainty, paragraph 1 prescribes the customary international law minimum standard of treatment of aliens as the standard of treatment to be afforded to covered investments. The concepts of "fair and equitable treatment" and "full protection and security" do not require treatment in addition to or beyond that which is required by that standard, and do not create additional substantive rights. The obligations in paragraph 1 to provide:

(a) "fair and equitable treatment" includes the obligation not to deny justice in criminal, civil or administrative adjudicatory proceedings in accordance with the principle of due process embodied in the principal legal systems of the world; and

(b) "full protection and security" requires each Party to provide the level of police protection required under customary international law.

3. A determination that there has been a breach of another provision of this Agreement, or of a separate international agreement, does not establish that there has been a breach of this Article.

4. For greater certainty, the mere fact that a Party takes or fails to take an action that may be inconsistent with an investor's expectations does not constitute a breach of this Article, even if there is loss or damage to the covered investment as a result.

5. For greater certainty, the mere fact that a subsidy or grant has not been issued, renewed or maintained, or has been modified or reduced, by a Party, does not constitute a breach of this Article, even if there is loss or damage to the covered investment as a result.

Article 9.7: Treatment in Case of Armed Conflict or Civil Strife

1. Notwithstanding Article 9.12.6(b) (Non-Conforming Measures), each Party shall accord to investors of another Party and to covered investments non discriminatory treatment with respect to measures it adopts or maintains relating to losses suffered by investments in its territory owing to armed conflict or civil strife.

2. Notwithstanding paragraph 1, if an investor of a Party, in a situation referred to in paragraph 1, suffers a loss in the territory of another Party resulting from:

(a) requisitioning of its covered investment or part thereof by the latter's forces or authorities; or

(b) destruction of its covered investment or part thereof by the latter's forces or authorities, which was not required by the necessity of the situation,

the latter Party shall provide the investor restitution, compensation or both, as appropriate, for that loss.

3. Paragraph 1 shall not apply to existing measures relating to subsidies or grants that would be inconsistent with Article 9.4 (National Treatment) but for Article 9.12.6(b) (Non-Conforming Measures).

Article 9.8: Expropriation and Compensation

1. No Party shall expropriate or nationalise a covered investment either directly or indirectly through measures equivalent to expropriation or nationalisation (expropriation), except:

(a) for a public purpose;

(b) in a non-discriminatory manner;

(d) in accordance with due process of law.

2. Compensation shall:

(a) be paid without delay;

(b) be equivalent to the fair market value of the expropriated investment immediately before the expropriation took place (the date of expropriation);

(d) be fully realisable and freely transferable.

3. If the fair market value is denominated in a freely usable currency, the compensation paid shall be no less than the fair market value on the date of expropriation, plus interest at a commercially reasonable rate for that currency, accrued from the date of expropriation until the date of payment.

4. If the fair market value is denominated in a currency that is not freely usable, the compensation paid, converted into the currency of payment at the market rate of exchange prevailing on the date of payment, shall be no less than:

(a) the fair market value on the date of expropriation, converted into a freely usable currency at the market rate of exchange prevailing on that date; plus

(b) interest, at a commercially reasonable rate for that freely usable currency, accrued from the date of expropriation until the date of payment.

5. This Article shall not apply to the issuance of compulsory licences granted in relation to intellectual property rights in accordance with the TRIPS Agreement, or to the revocation, limitation or creation of intellectual property rights, to the extent that the issuance, revocation, limitation or creation is consistent with Chapter 18 (Intellectual Property) and the TRIPS Agreement.

6. For greater certainty, a Party's decision not to issue, renew or maintain a subsidy or grant, or decision to modify or reduce a subsidy or grant,

(a) in the absence of any specific commitment under law or contract to issue, renew or maintain that subsidy or grant; or

(b) in accordance with any terms or conditions attached to the issuance, renewal, modification, reduction and maintenance of that subsidy or grant, standing alone, does not constitute an expropriation.

Article 9.9: Transfers

1. Each Party shall permit all transfers relating to a covered investment to be made freely and without delay into and out of its territory. Such transfers include:

(a) contributions to capital;

(b) profits, dividends, interest, capital gains, royalty payments, management fees, technical assistance fees and other fees;

(c) proceeds from the sale of all or any part of the covered investment or from the partial or complete liquidation of the covered investment;

(d) payments made under a contract, including a loan agreement;

(e) payments made pursuant to Article 9.7 (Treatment in Case of Armed Conflict or Civil Strife) and Article 9.8 (Expropriation and Compensation); and

(f) payments arising out of a dispute.

2. Each Party shall permit transfers relating to a covered investment to be made in a freely usable currency at the market rate of exchange prevailing at the time of transfer.

3. Each Party shall permit returns in kind relating to a covered investment to be made as authorised or specified in a written agreement between the Party and a covered investment or an investor of another Party.

4. Notwithstanding paragraphs 1, 2 and 3, a Party may prevent or delay a transfer through the equitable, non-discriminatory and good faith application of its laws relating to:

(a) bankruptcy, insolvency or the protection of the rights of creditors;

(b) issuing, trading or dealing in securities, futures, options or derivatives;

(d) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; or

(e) ensuring compliance with orders or judgments in judicial or administrative proceedings.

5. Notwithstanding paragraph 3, a Party may restrict transfers of returns in kind in circumstances where it could otherwise restrict such transfers under this Agreement, including as set out in paragraph 4.

Article 9.10: Performance Requirements

1. No Party shall, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party in its territory, impose or enforce any requirement, or enforce any commitment or undertaking:

(a) to export a given level or percentage of goods or services;

(b) to achieve a given level or percentage of domestic content;

(c) to purchase, use or accord a preference to goods produced in its territory, or to purchase goods from persons in its territory;

(d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with the investment;

(e) to restrict sales of goods or services in its territory that the investment produces or supplies by relating those sales in any way to the volume or value of its exports or foreign exchange earnings;

(f) to transfer a particular technology, a production process or other proprietary knowledge to a person in its territory;

(g) to supply exclusively from the territory of the Party the goods that the investment produces or the services that it supplies to a specific regional market or to the world market;

(h) (i) to purchase, use or accord a preference to, in its territory, technology of the Party or of a person of the Party;24 or

(ii) that prevents the purchase or use of, or the according of a preference to, in its territory, a particular technology; or

(i) to adopt:

(i) a given rate or amount of royalty under a licence contract; or

(ii) a given duration of the term of a licence contract, in regard to any licence contract in existence at the time the requirement is imposed or enforced, or any commitment or undertaking is enforced, or any future licence contract25 freely entered into between the investor and a person in its territory, provided that the requirement is imposed or the commitment or undertaking is enforced in a manner that constitutes direct interference with that licence contract by an exercise of non judicial governmental authority of a Party. For greater certainty, paragraph 1(i) does not apply when the licence contract is concluded between the investor and a Party.

2. No Party shall condition the receipt or continued receipt of an advantage, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party in its territory, on compliance with any requirement:

(a) to achieve a given level or percentage of domestic content;

(b) to purchase, use or accord a preference to goods produced in its territory, or to purchase goods from persons in its territory;

(c) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with the investment; or

(d) to restrict sales of goods or services in its territory that the investment produces or supplies by relating those sales in any way to the volume or value of its exports or foreign exchange earnings.

3. (a) Nothing in paragraph 2 shall be construed to prevent a Party from conditioning the receipt or continued receipt of an advantage, in connection with an investment of an investor of a Party or of a non-Party in its territory, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory.

(b) Paragraphs 1(f), 1(h) and 1(i) shall not apply:

(i) if a Party authorises use of an intellectual property right in accordance with Article 31 of the TRIPS Agreement, or to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement; or

(ii) if the requirement is imposed or the commitment or undertaking is enforced by a court, administrative tribunal or competition authority to remedy a practice determined after judicial or administrative process to be anticompetitive under the Party's competition laws.

(c) Paragraph 1(i) shall not apply if the requirement is imposed or the commitment or undertaking is enforced by a tribunal as equitable remuneration under the Party's copyright laws.

(d) Provided that such measures are not applied in an arbitrary or unjustifiable manner, or do not constitute a disguised restriction on international trade or investment, paragraphs 1(b), 1(c), 1(f), 2(a) and 2(b) shall not be construed to prevent a Party from adopting or maintaining measures, including environmental measures:

(i) necessary to secure compliance with laws and regulations that are not inconsistent with this Agreement;

(ii) necessary to protect human, animal or plant life or health; or

(iii) related to the conservation of living or non-living exhaustible natural resources.

(e) Paragraphs 1(a), 1(b), 1(c), 2(a) and 2(b) shall not apply to qualification requirements for goods or services with respect to export promotion and foreign aid programs.

(f) Paragraphs 1(b), 1(c), 1(f), 1(g), 1(h), 1(i), 2(a) and 2(b) shall not apply to government procurement.

(g) Paragraphs 2(a) and 2(b) shall not apply to requirements imposed by an importing Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas.

(h) Paragraphs (1)(h) and (1)(i) shall not be construed to prevent a Party from adopting or maintaining measures to protect legitimate public welfare objectives, provided that such measures are not applied in an arbitrary or unjustifiable manner, or in a manner that constitutes a disguised restriction on international trade or investment.

4. For greater certainty, nothing in paragraph 1 shall be construed to prevent a Party, in connection with the establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of an investment of an investor of a Party or of a non-Party in its territory, from imposing or enforcing a requirement, or enforcing a commitment or undertaking, to employ or train workers in its territory provided that the employment or training does not require the transfer of a particular technology, production process or other proprietary knowledge to a person in its territory.

5. For greater certainty, paragraphs 1 and 2 shall not apply to any commitment, undertaking or requirement other than those set out in those paragraphs.

6. This Article does not preclude enforcement of any commitment, undertaking or requirement between private parties, if a Party did not impose or require the commitment, undertaking or requirement.

Article 9.11: Senior Management and Boards of Directors

1. No Party shall require that an enterprise of that Party that is a covered investment appoint to a senior management position a natural person of any particular nationality.

2. A Party may require that a majority of the board of directors, or any committee thereof, of an enterprise of that Party that is a covered investment, be of a particular nationality or resident in the territory of the Party, provided that the requirement does not materially impair the ability of the investor to exercise control over its investment.

Article 9.12: Non-Conforming Measures

1. Article 9.4 (National Treatment), Article 9.5 (Most-Favoured-Nation Treatment), Article 9.10 (Performance Requirements) and Article 9.11 (Senior Management and Boards of Directors) shall not apply to:

(a) any existing non-conforming measure that is maintained by a Party at:

(i) the central level of government, as set out by that Party in its Schedule to Annex I;

(ii) a regional level of government, as set out by that Party in its Schedule to Annex I; or

(iii) a local level of government;

(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or

(c) an amendment to any non-conforming measure referred to in subparagraph (a), to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Article 9.4 (National Treatment), Article 9.5 (Most-Favoured-Nation Treatment), Article 9.10 (Performance Requirements) or Article 9.11 (Senior Management and Boards of Directors).

2. Article 9.4 (National Treatment), Article 9.5 (Most-Favoured-Nation Treatment), Article 9.10 (Performance Requirements) and Article 9.11 (Senior Management and Boards of Directors) shall not apply to any measure that a Party adopts or maintains with respect to sectors, subsectors or activities, as set out by that Party in its Schedule to Annex II.

3. If a Party considers that a non-conforming measure applied by a regional level of government of another Party, as referred to in paragraph 1(a)(ii), creates a material impediment to investment in relation to the former Party, it may request consultations with regard to that measure. These Parties shall enter into consultations with a view to exchanging information on the operation of the measure and to considering whether further steps are necessary and appropriate.

4. No Party shall, under any measure adopted after the date of entry into force of this Agreement for that Party and covered by its Schedule to Annex II, require an investor of another Party, by reason of its nationality, to sell or otherwise dispose of an investment existing at the time the measure becomes effective.

5. (a) Article 9.4 (National Treatment) shall not apply to any measure that falls within an exception to, or derogation from, the obligations which are imposed by:

(i) Article 18.8 (National Treatment); or

(ii) Article 3 of the TRIPS Agreement, if the exception or derogation relates to matters not addressed by Chapter 18 (Intellectual Property).

(b) Article 9.5 (Most-Favoured-Nation Treatment) shall not apply to any measure that falls within Article 5 of the TRIPS Agreement, or an exception to, or derogation from, the obligations which are imposed by:

(i) Article 18.8 (National Treatment); or

(ii) Article 4 of the TRIPS Agreement.

6. Article 9.4 (National Treatment), Article 9.5 (Most-Favoured-Nation Treatment) and Article 9.11 (Senior Management and Boards of Directors) shall not apply to:

(a) government procurement; or

(b) subsidies or grants provided by a Party, including government supported loans, guarantees and insurance.

7. For greater certainty, any amendments or modifications to a Party's Schedules to Annex I or Annex II, pursuant to this Article, shall be made in accordance with Article 30.2 (Amendments).

Article 9.13: Subrogation

If a Party, or any agency, institution, statutory body or corporation designated by the Party, makes a payment to an investor of the Party under a guarantee, a contract of insurance or other form of indemnity that it has entered into with respect to a covered investment, the other Party in whose territory the covered investment was made shall recognise the subrogation or transfer of any rights the investor would have possessed under this Chapter with respect to the covered investment but for the subrogation, and the investor shall be precluded from pursuing these rights to the extent of the subrogation.

Article 9.14: Special Formalities and Information Requirements

1. Nothing in Article 9.4 (National Treatment) shall be construed to prevent a Party from adopting or maintaining a measure that prescribes special formalities in connection with a covered investment, such as a residency requirement for registration or a requirement that a covered investment be legally constituted under the laws or regulations of the Party, provided that these formalities do not materially impair the protections afforded by the Party to investors of another Party and covered investments pursuant to this Chapter.

2. Notwithstanding Article 9.4 (National Treatment) and Article 9.5 (Most Favoured-Nation Treatment), a Party may require an investor of another Party or its covered investment to provide information concerning that investment solely for informational or statistical purposes. The Party shall protect such information that is confidential from any disclosure that would prejudice the competitive position of the investor or the covered investment. Nothing in this paragraph shall be construed to prevent a Party from otherwise obtaining or disclosing information in connection with the equitable and good faith application of its law.

Article 9.15: Denial of Benefits

1. A Party may deny the benefits of this Chapter to an investor of another Party that is an enterprise of that other Party and to investments of that investor if the enterprise:

(a) is owned or controlled by a person of a non-Party or of the denying Party; and

(b) has no substantial business activities in the territory of any Party other than the denying Party.

2. A Party may deny the benefits of this Chapter to an investor of another Party that is an enterprise of that other Party and to investments of that investor if persons of a non-Party own or control the enterprise and the denying Party adopts or maintains measures with respect to the non-Party or a person of the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to the enterprise or to its investments.

Article 9.16: Investment and Environmental, Health and other Regulatory Objectives

Nothing in this Chapter shall be construed to prevent a Party from adopting, maintaining or enforcing any measure otherwise consistent with this Chapter that it considers appropriate to ensure that investment activity in its territory is undertaken in a manner sensitive to environmental, health or other regulatory objectives.

Article 9.17: Corporate Social Responsibility

The Parties reaffirm the importance of each Party encouraging enterprises operating within its territory or subject to its jurisdiction to voluntarily incorporate into their internal policies those internationally recognised standards, guidelines and principles of corporate social responsibility that have been endorsed or are supported by that Party.

Section B: Investor-State Dispute Settlement

Article 9.18: Consultation and Negotiation

1. In the event of an investment dispute, the claimant and the respondent should initially seek to resolve the dispute through consultation and negotiation, which may include the use of non-binding, third party procedures, such as good offices, conciliation or mediation.

2. The claimant shall deliver to the respondent a written request for consultations setting out a brief description of facts regarding the measure or measures at issue.

3. For greater certainty, the initiation of consultations and negotiations shall not be construed as recognition of the jurisdiction of the tribunal.

Article 9.19: Submission of a Claim to Arbitration

1. If an investment dispute has not been resolved within six months of the receipt by the respondent of a written request for consultations pursuant to Article 9.18.2 (Consultation and Negotiation):

(a) the claimant, on its own behalf, may submit to arbitration under this Section a claim:

(i) that the respondent has breached:

(A) an obligation under Section A;

(B) an investment authorisation; or

(ii) that the claimant has incurred loss or damage by reason of, or arising out of, that breach; and

(b) the claimant, on behalf of an enterprise of the respondent that is a juridical person that the claimant owns or controls directly or indirectly, may submit to arbitration under this Section a claim:

(i) that the respondent has breached:

(A) an obligation under Section A;

(B) an investment authorisation; or

(ii) that the enterprise has incurred loss or damage by reason of, or arising out of, that breach, provided that a claimant may submit pursuant to subparagraph (a)(i)(C) or (b)(i)(C) a claim for breach of an investment agreement only if the subject matter of the claim and the claimed damages directly relate to the covered investment that was established or acquired, or sought to be established or acquired, in reliance on the relevant investment agreement.

2. When the claimant submits a claim pursuant to paragraph 1(a)(i)(B), 1(a)(i)(C), 1(b)(i)(B) or 1(b)(i)(C), the respondent may make a counterclaim in connection with the factual and legal basis of the claim or rely on a claim for the purpose of a set off against the claimant.32

3. At least 90 days before submitting any claim to arbitration under this Section, the claimant shall deliver to the respondent a written notice of its intention to submit a claim to arbitration (notice of intent). The notice shall specify:

(a) the name and address of the claimant and, if a claim is submitted on behalf of an enterprise, the name, address and place of incorporation of the enterprise;

(b) for each claim, the provision of this Agreement, investment authorisation or investment agreement alleged to have been breached and any other relevant provisions;

(d) the relief sought and the approximate amount of damages claimed.

4. The claimant may submit a claim referred to in paragraph 1 under one of the following alternatives:

(a) the ICSID Convention and the ICSID Rules of Procedure for Arbitration Proceedings, provided that both the respondent and the Party of the claimant are parties to the ICSID Convention;

(b) the ICSID Additional Facility Rules, provided that either the respondent or the Party of the claimant is a party to the ICSID Convention;

(d) if the claimant and respondent agree, any other arbitral institution or any other arbitration rules.

5. A claim shall be deemed submitted to arbitration under this Section when the claimant's notice of or request for arbitration (notice of arbitration):

(a) referred to in the ICSID Convention is received by the Secretary General;

(b) referred to in the ICSID Additional Facility Rules is received by the Secretary-General;

(c) referred to in the UNCITRAL Arbitration Rules, together with the statement of claim referred to therein, are received by the respondent; or

(d) referred to under any arbitral institution or arbitration rules selected under paragraph 4(d) is received by the respondent. A claim asserted by the claimant for the first time after such notice of arbitration is submitted shall be deemed submitted to arbitration under this Section on the date of its receipt under the applicable arbitration rules.

6. The arbitration rules applicable under paragraph 4 that are in effect on the date the claim or claims were submitted to arbitration under this Section shall govern the arbitration except to the extent modified by this Agreement.

7. The claimant shall provide with the notice of arbitration:

(a) the name of the arbitrator that the claimant appoints; or

(b) the claimant's written consent for the Secretary-General to appoint that arbitrator.

Article 9.20: Consent of Each Party to Arbitration

1. Each Party consents to the submission of a claim to arbitration under this Section in accordance with this Agreement.

2. The consent under paragraph 1 and the submission of a claim to arbitration under this Section shall be deemed to satisfy the requirements of:

(a) Chapter II of the ICSID Convention (Jurisdiction of the Centre) and the ICSID Additional Facility Rules for written consent of the parties to the dispute;

(b) Article II of the New York Convention for an "agreement in writing"; and

Article 9.21: Conditions and Limitations on Consent of Each Party

1. No claim shall be submitted to arbitration under this Section if more than three years and six months have elapsed from the date on which the claimant first acquired, or should have first acquired, knowledge of the breach alleged under Article 9.19.1 (Submission of a Claim to Arbitration) and knowledge that the claimant (for claims brought under Article 9.19.1(a)) or the enterprise (for claims brought under Article 9.19.1(b)) has incurred loss or damage.

2. No claim shall be submitted to arbitration under this Section unless:

(a) the claimant consents in writing to arbitration in accordance with the procedures set out in this Agreement; and

(b) the notice of arbitration is accompanied:

(i) for claims submitted to arbitration under Article 9.19.1(a) (Submission of a Claim to Arbitration), by the claimant's written waiver; and

(ii) for claims submitted to arbitration under Article 9.19.1(b) (Submission of a Claim to Arbitration), by the claimant's and the enterprise's written waivers, of any right to initiate or continue before any court or administrative tribunal under the law of a Party, or any other dispute settlement procedures, any proceeding with respect to any measure alleged to constitute a breach referred to in Article 9.19 (Submission of a Claim to Arbitration).

3. Notwithstanding paragraph 2(b), the claimant (for claims brought under Article 9.19.1(a) (Submission of a Claim to Arbitration)) and the claimant or the enterprise (for claims brought under Article 9.19.1(b)) may initiate or continue an action that seeks interim injunctive relief and does not involve the payment of monetary damages before a judicial or administrative tribunal of the respondent, provided that the action is brought for the sole purpose of preserving the claimant's or the enterprise's rights and interests during the pendency of the arbitration.

Article 9.22: Selection of Arbitrators

1. Unless the disputing parties agree otherwise, the tribunal shall comprise three arbitrators, one arbitrator appointed by each of the disputing parties and the third, who shall be the presiding arbitrator, appointed by agreement of the disputing parties.

2. The Secretary-General shall serve as appointing authority for an arbitration under this Section.

3. If a tribunal has not been constituted within a period of 75 days after the date that a claim is submitted to arbitration under this Section, the Secretary General, on the request of a disputing party, shall appoint, in his or her discretion, the arbitrator or arbitrators not yet appointed. The Secretary-General shall not appoint a national of either the respondent or the Party of the claimant as the presiding arbitrator unless the disputing parties agree otherwise.

4. For the purposes of Article 39 of the ICSID Convention and Article 7 of Schedule C to the ICSID Additional Facility Rules, and without prejudice to an objection to an arbitrator on a ground other than nationality:

(a) the respondent agrees to the appointment of each individual member of a tribunal established under the ICSID Convention or the ICSID Additional Facility Rules;

(b) a claimant referred to in Article 9.19.1(a) (Submission of a Claim to Arbitration) may submit a claim to arbitration under this Section, or continue a claim, under the ICSID Convention or the ICSID Additional Facility Rules, only on condition that the claimant agrees in writing to the appointment of each individual member of the tribunal; and

(c) a claimant referred to in Article 9.19.1(b) (Submission of a Claim to Arbitration) may submit a claim to arbitration under this Section, or continue a claim, under the ICSID Convention or the ICSID Additional Facility Rules, only on condition that the claimant and the enterprise agree in writing to the appointment of each individual member of the tribunal.

5. In the appointment of arbitrators to a tribunal for claims submitted under Article 9.19.1(a)(i)(B) (Submission of a Claim to Arbitration), Article 9.19.1(b)(i)(B), Article 9.19.1(a)(i)(C) or Article 9.19.1(b)(i)(C), each disputing party shall take into account the expertise or relevant experience of particular candidates with respect to the relevant governing law under Article 9.25.2 (Governing Law). If the parties fail to agree on the appointment of the presiding arbitrator, the Secretary-General shall also take into account the expertise or relevant experience of particular candidates with respect to the relevant governing law under Article 9.25.2.

6. The Parties shall, prior to the entry into force of this Agreement, provide guidance on the application of the Code of Conduct for Dispute Settlement Proceedings under Chapter 28 (Dispute Settlement) to arbitrators selected to serve on investor-State dispute settlement tribunals pursuant to this Article, including any necessary modifications to the Code of Conduct to conform to the context of investor-State dispute settlement. The Parties shall also provide guidance on the application of other relevant rules or guidelines on conflicts of interest in international arbitration. Arbitrators shall comply with that guidance in addition to the applicable arbitral rules regarding independence and impartiality of arbitrators.

Article 9.23: Conduct of the Arbitration

1. The disputing parties may agree on the legal place of any arbitration under the arbitration rules applicable under Article 9.19.4 (Submission of a Claim to Arbitration). If the disputing parties fail to reach agreement, the tribunal shall determine the place in accordance with the applicable arbitration rules, provided

that the place shall be in the territory of a State that is a party to the New York Convention.

2. A non-disputing Party may make oral and written submissions to the tribunal regarding the interpretation of this Agreement.

3. After consultation with the disputing parties, the tribunal may accept and consider written amicus curiae submissions regarding a matter of fact or law within the scope of the dispute that may assist the tribunal in evaluating the submissions and arguments of the disputing parties from a person or entity that is not a disputing party but has a significant interest in the arbitral proceedings. Each submission shall identify the author; disclose any affiliation, direct or indirect, with any disputing party; and identify any person, government or other entity that has provided, or will provide, any financial or other assistance in preparing the submission. Each submission shall be in a language of the arbitration and comply with any page limits and deadlines set by the tribunal. The tribunal shall provide the disputing parties with an opportunity to respond to such submissions. The tribunal shall ensure that the submissions do not disrupt or unduly burden the arbitral proceedings, or unfairly prejudice any disputing party.

4. Without prejudice to a tribunal's authority to address other objections as a preliminary question, such as an objection that a dispute is not within the competence of the tribunal, including an objection to the tribunal's jurisdiction, a tribunal shall address and decide as a preliminary question any objection by the respondent that, as a matter of law, a claim submitted is not a claim for which an award in favour of the claimant may be made under Article 9.29 (Awards) or that a claim is manifestly without legal merit.

(a) An objection under this paragraph shall be submitted to the tribunal as soon as possible after the tribunal is constituted, and in no event later than the date the tribunal fixes for the respondent to submit its counter-memorial or, in the case of an amendment to the notice of arbitration, the date the tribunal fixes for the respondent to submit its response to the amendment.

(b) On receipt of an objection under this paragraph, the tribunal shall suspend any proceedings on the merits, establish a schedule for considering the objection consistent with any schedule it has established for considering any other preliminary question, and issue a decision or award on the objection, stating the grounds therefor.

(c) In deciding an objection under this paragraph that a claim submitted is not a claim for which an award in favour of the claimant may be made under Article 9.29 (Awards), the tribunal shall assume to be true the claimant's factual allegations in support of any claim in the notice of arbitration (or any amendment thereof) and, in disputes brought under the UNCITRAL Arbitration Rules, the statement of claim referred to in the relevant article of the UNCITRAL Arbitration Rules. The tribunal may also consider any relevant facts not in dispute.

(d) The respondent does not waive any objection as to competence, including an objection to jurisdiction, or any argument on the merits merely because the respondent did or did not raise an objection under this paragraph or make use of the expedited procedure set out in paragraph 5.

5. In the event that the respondent so requests within 45 days after the tribunal is constituted, the tribunal shall decide on an expedited basis an objection under paragraph 4 or any objection that the dispute is not within the tribunal's competence, including an objection that the dispute is not within the tribunal's jurisdiction. The tribunal shall suspend any proceedings on the merits and issue a decision or award on the objection, stating the grounds therefor, no later than 150 days after the date of the request. However, if a disputing party requests a hearing, the tribunal may take an additional 30 days to issue the decision or award. Regardless of whether a hearing is requested, a tribunal may, on a showing of extraordinary cause, delay issuing its decision or award by an additional brief period, which may not exceed 30 days.

6. When the tribunal decides a respondent's objection under paragraph 4 or 5, it may, if warranted, award to the prevailing disputing party reasonable costs and attorney's fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the tribunal shall consider whether either the claimant's claim or the respondent's objection was frivolous, and shall provide the disputing parties a reasonable opportunity to comment.

7. For greater certainty, if an investor of a Party submits a claim under this Section, including a claim alleging that a Party breached Article 9.6 (Minimum Standard of Treatment), the investor has the burden of proving all elements of its claims, consistent with general principles of international law applicable to international arbitration.

8. A respondent may not assert as a defence, counterclaim, right of set-off or for any other reason, that the claimant has received or will receive indemnification or other compensation for all or part of the alleged damages pursuant to an insurance or guarantee contract.

9. A tribunal may order an interim measure of protection to preserve the rights of a disputing party, or to ensure that the tribunal's jurisdiction is made fully effective, including an order to preserve evidence in the possession or control of a disputing party or to protect the tribunal's jurisdiction. A tribunal may not order attachment or enjoin the application of a measure alleged to constitute a breach referred to in Article 9.19 (Submission of a Claim to Arbitration). For the purposes of this paragraph, an order includes a recommendation.

10. In any arbitration conducted under this Section, at the request of a disputing party, a tribunal shall, before issuing a decision or award on liability, transmit its proposed decision or award to the disputing parties. Within 60 days after the tribunal transmits its proposed decision or award, the disputing parties may submit written comments to the tribunal concerning any aspect of its proposed decision or award. The tribunal shall consider any comments and issue its decision or award no later than 45 days after the expiration of the 60 day comment period.

11. In the event that an appellate mechanism for reviewing awards rendered by investor-State dispute settlement tribunals is developed in the future under other institutional arrangements, the Parties shall consider whether awards rendered under Article 9.29 (Awards) should be subject to that appellate mechanism. The Parties shall strive to ensure that any such appellate mechanism they consider adopting provides for transparency of proceedings similar to the transparency provisions established in Article 9.24 (Transparency of Arbitral Proceedings).

Article 9.24: Transparency of Arbitral Proceedings

1. Subject to paragraphs 2 and 4, the respondent shall, after receiving the following documents, promptly transmit them to the non-disputing Parties and make them available to the public:

(a) the notice of intent;

(b) the notice of arbitration;

(c) pleadings, memorials and briefs submitted to the tribunal by a disputing party and any written submissions submitted pursuant to Article 9.23.2 (Conduct of the Arbitration) and Article 9.23.3 and Article 9.28 (Consolidation);

(d) minutes or transcripts of hearings of the tribunal, if available; and (e) orders, awards and decisions of the tribunal.

2. The tribunal shall conduct hearings open to the public and shall determine, in consultation with the disputing parties, the appropriate logistical arrangements. If a disputing party intends to use information in a hearing that is designated as protected information or otherwise subject to paragraph 3 it shall so advise the tribunal. The tribunal shall make appropriate arrangements to protect such information from disclosure which may include closing the hearing for the duration of the discussion of that information.

3. Nothing in this Section, including paragraph 4(d), requires a respondent to make available to the public or otherwise disclose during or after the arbitral proceedings, including the hearing, protected information, or to furnish or allow access to information that it may withhold in accordance with Article 29.2 (Security Exceptions) or Article 29.7 (Disclosure of Information).

4. Any protected information that is submitted to the tribunal shall be protected from disclosure in accordance with the following procedures:

(a) subject to subparagraph (d), neither the disputing parties nor the tribunal shall disclose to any non-disputing Party or to the public any protected information if the disputing party that provided the information clearly designates it in accordance with subparagraph (b);

(b) any disputing party claiming that certain information constitutes protected information shall clearly designate the information according to any schedule set by the tribunal;

(c) a disputing party shall, according to any schedule set by the tribunal, submit a redacted version of the document that does not contain the protected information. Only the redacted version shall be disclosed in accordance with paragraph 1; and

(d) the tribunal, subject to paragraph 3, shall decide any objection regarding the designation of information claimed to be protected information. If the tribunal determines that the information was not properly designated, the disputing party that submitted the information may:

(i) withdraw all or part of its submission containing that information; or

(ii) agree to resubmit complete and redacted documents with corrected designations in accordance with the tribunal's determination and subparagraph (c). In either case, the other disputing party shall, whenever necessary, resubmit complete and redacted documents which either remove the information withdrawn under subparagraph (d)(i) by the disputing party that first submitted the information or redesignate the information consistent with the designation under subparagraph (d)(ii) of the disputing party that first submitted the information.

5. Nothing in this Section requires a respondent to withhold from the public information required to be disclosed by its laws. The respondent should endeavour to apply those laws in a manner sensitive to protecting from disclosure information that has been designated as protected information.

Article 9.25: Governing Law

1. Subject to paragraph 3, when a claim is submitted under Article 9.19.1(a)(i)(A) (Submission of a Claim to Arbitration) or Article 9.19.1(b)(i)(A), the tribunal shall decide the issues in dispute in accordance with this Agreement and applicable rules of international law.

2. Subject to paragraph 3 and the other provisions of this Section, when a claim is submitted under Article 9.19.1(a)(i)(B) (Submission of a Claim to Arbitration), Article 9.19.1(a)(i)(C), Article 9.19.1(b)(i)(B) or Article 9.19.1(b)(i)(C), the tribunal shall apply:

(a) the rules of law applicable to the pertinent investment authorisation or specified in the pertinent investment authorisation or investment agreement, or as the disputing parties may agree otherwise; or

(b) if, in the pertinent investment agreement the rules of law have not been specified or otherwise agreed:

(i) the law of the respondent, including its rules on the conflict of laws; and

(ii) such rules of international law as may be applicable.

3. A decision of the Commission on the interpretation of a provision of this Agreement under Article 27.2.2(f) (Functions of the Commission) shall be binding on a tribunal, and any decision or award issued by a tribunal must be consistent with that decision.

Article 9.26: Interpretation of Annexes

1. If a respondent asserts as a defence that the measure alleged to be a breach is within the scope of a non-conforming measure set out in Annex I or Annex II, the tribunal shall, on request of the respondent, request the interpretation of the Commission on the issue. The Commission shall submit in writing any decision on its interpretation under Article 27.2.2(f) (Functions of the Commission) to the tribunal within 90 days of delivery of the request.

2. A decision issued by the Commission under paragraph 1 shall be binding on the tribunal, and any decision or award issued by the tribunal must be consistent with that decision. If the Commission fails to issue such a decision within 90 days, the tribunal shall decide the issue.

Article 9.27: Expert Reports

Without prejudice to the appointment of other kinds of experts when authorised by the applicable arbitration rules, a tribunal, on request of a disputing party or, unless the disputing parties disapprove, on its own initiative, may appoint one or more experts to report to it in writing on any factual issue concerning scientific matters raised by a disputing party in a proceeding, subject to any terms and conditions that the disputing parties may agree.

Article 9.28: Consolidation

1. If two or more claims have been submitted separately to arbitration under Article 9.19.1 (Submission of a Claim to Arbitration) and the claims have a question of law or fact in common and arise out of the same events or circumstances, any disputing party may seek a consolidation order in accordance with the agreement of all the disputing parties sought to be covered by the order or the terms of paragraphs 2 through 10.

2. A disputing party that seeks a consolidation order under this Article shall deliver, in writing, a request to the Secretary-General and to all the disputing parties sought to be covered by the order and shall specify in the request:

(a) the names and addresses of all the disputing parties sought to be covered by the order;

(b) the nature of the order sought; and

3. Unless the Secretary-General finds within a period of 30 days after the date of receiving a request under paragraph 2 that the request is manifestly unfounded, a tribunal shall be established under this Article.

4. Unless all the disputing parties sought to be covered by the order agree otherwise, a tribunal established under this Article shall comprise three arbitrators:

(a) one arbitrator appointed by agreement of the claimants;

(b) one arbitrator appointed by the respondent; and

(c) the presiding arbitrator appointed by the Secretary-General, provided that the presiding arbitrator is not a national of the respondent or of a Party of any claimant.

5. If, within a period of 60 days after the date when the Secretary-General receives a request made under paragraph 2, the respondent fails or the claimants fail to appoint an arbitrator in accordance with paragraph 4, the Secretary General, on request of any disputing party sought to be covered by the order, shall appoint, in his or her discretion, the arbitrator or arbitrators not yet appointed.

6. If a tribunal established under this Article is satisfied that two or more claims that have been submitted to arbitration under Article 9.19.1 (Submission of a Claim to Arbitration) have a question of law or fact in common, and arise out of the same events or circumstances, the tribunal may, in the interest of fair and efficient resolution of the claims, and after hearing the disputing parties, by order:

(a) assume jurisdiction over, and hear and determine together, all or part of the claims;

(b) assume jurisdiction over, and hear and determine one or more of the claims, the determination of which it believes would assist in the resolution of the others; or

(c) instruct a tribunal previously established under Article 9.22 (Selection of Arbitrators) to assume jurisdiction over, and hear and determine together, all or part of the claims, provided that:

(i) that tribunal, on request of a claimant that was not previously a disputing party before that tribunal, shall be reconstituted with its original members, except that the arbitrator for the claimants shall be appointed pursuant to paragraphs 4(a) and 5; and

(ii) that tribunal shall decide whether a prior hearing shall be repeated.

7. If a tribunal has been established under this Article, a claimant that has submitted a claim to arbitration under Article 9.19.1 (Submission of a Claim to Arbitration) and that has not been named in a request made under paragraph 2 may make a written request to the tribunal that it be included in any order made under paragraph 6. The request shall specify:

(a) the name and address of the claimant;

(b) the nature of the order sought; and

The claimant shall deliver a copy of its request to the Secretary-General.

8. A tribunal established under this Article shall conduct its proceedings in accordance with the UNCITRAL Arbitration Rules, except as modified by this Section.

9. A tribunal established under Article 9.22 (Selection of Arbitrators) shall not have jurisdiction to decide a claim, or a part of a claim, over which a tribunal established or instructed under this Article has assumed jurisdiction.

10. On the application of a disputing party, a tribunal established under this Article, pending its decision under paragraph 6, may order that the proceedings of a tribunal established under Article 9.22 (Selection of Arbitrators) be stayed, unless the latter tribunal has already adjourned its proceedings.

Article 9.29: Awards

1. When a tribunal makes a final award, the tribunal may award, separately or in combination, only:

(a) monetary damages and any applicable interest; and

(b) restitution of property, in which case the award shall provide that the respondent may pay monetary damages and any applicable interest in lieu of restitution.

2. For greater certainty, if an investor of a Party submits a claim to arbitration under Article 9.19.1(a) (Submission of a Claim to Arbitration), it may recover only for loss or damage that it has incurred in its capacity as an investor of a Party.

3. A tribunal may also award costs and attorney's fees incurred by the disputing parties in connection with the arbitral proceeding, and shall determine how and by whom those costs and attorney's fees shall be paid, in accordance with this Section and the applicable arbitration rules.

4. For greater certainty, for claims alleging the breach of an obligation under Section A with respect to an attempt to make an investment, when an award is made in favour of the claimant, the only damages that may be awarded are those that the claimant has proven were sustained in the attempt to make the investment, provided that the claimant also proves that the breach was the proximate cause of those damages. If the tribunal determines such claims to be frivolous, the tribunal may award to the respondent reasonable costs and attorney's fees.

5. Subject to paragraph 1, if a claim is submitted to arbitration under Article 9.19.1(b) (Submission of a Claim to Arbitration) and an award is made in favour of the enterprise:

(a) an award of restitution of property shall provide that restitution be made to the enterprise;

(b) an award of monetary damages and any applicable interest shall provide that the sum be paid to the enterprise; and

(c) the award shall provide that it is made without prejudice to any right that any person may have under applicable domestic law with respect to the relief provided in the award.

6. A tribunal shall not award punitive damages.

7. An award made by a tribunal shall have no binding force except between the disputing parties and in respect of the particular case.

8. Subject to paragraph 9 and the applicable review procedure for an interim award, a disputing party shall abide by and comply with an award without delay.

9. A disputing party shall not seek enforcement of a final award until:

(a) in the case of a final award made under the ICSID Convention:

(i) 120 days have elapsed from the date the award was rendered and no disputing party has requested revision or annulment of the award; or

(ii) revision or annulment proceedings have been completed; and

(b) in the case of a final award under the ICSID Additional Facility Rules, the UNCITRAL Arbitration Rules, or the rules selected pursuant to Article 9.19.4(d) (Submission of a Claim to Arbitration):

(i) 90 days have elapsed from the date the award was rendered and no disputing party has commenced a proceeding to revise, set aside or annul the award; or

(ii) a court has dismissed or allowed an application to revise, set aside or annul the award and there is no further appeal.

10. Each Party shall provide for the enforcement of an award in its territory.

11. If the respondent fails to abide by or comply with a final award, on delivery of a request by the Party of the claimant, a panel shall be established under Article 28.7 (Establishment of a Panel). The requesting Party may seek in those proceedings:

(a) a determination that the failure to abide by or comply with the final award is inconsistent with the obligations of this Agreement; and

(b) in accordance with Article 28.17 (Initial Report), a recommendation that the respondent abide by or comply with the final award.

12. A disputing party may seek enforcement of an arbitration award under the ICSID Convention, the New York Convention or the Inter-American Convention regardless of whether proceedings have been taken under paragraph 11.

13. A claim that is submitted to arbitration under this Section shall be considered to arise out of a commercial relationship or transaction for the purposes of Article I of the New York Convention and Article I of the Inter American Convention.

Article 9.30: Service of Documents

Delivery of notice and other documents to a Party shall be made to the place named for that Party in Annex 9-D (Service of Documents on a Party Under Section B). A Party shall promptly make publicly available and notify the other Parties of any change to the place referred to in that Annex.

ANNEX 9-A

CUSTOMARY INTERNATIONAL LAW

The Parties confirm their shared understanding that "customary international law" generally and as specifically referenced in Article 9.6 (Minimum Standard of Treatment) results from a general and consistent practice of States that they follow from a sense of legal obligation. The customary international law minimum standard of treatment of aliens refers to all customary international law principles that protect the investments of aliens.

ANNEX 9-B

EXPROPRIATION

The Parties confirm their shared understanding that:

1. An action or a series of actions by a Party cannot constitute an expropriation unless it interferes with a tangible or intangible property right or property interest in an investment.

2. Article 9.8.1 (Expropriation and Compensation) addresses two situations. The first is direct expropriation, in which an investment is nationalised or otherwise directly expropriated through formal transfer of title or outright seizure.

3. The second situation addressed by Article 9.8.1 (Expropriation and Compensation) is indirect expropriation, in which an action or series of actions by a Party has an effect equivalent to direct expropriation without formal transfer of title or outright seizure.

(a) The determination of whether an action or series of actions by a Party, in a specific fact situation, constitutes an indirect expropriation, requires a case-by-case, fact-based inquiry that considers, among other factors:

(i) the economic impact of the government action, although the fact that an action or series of actions by a Party has an adverse effect on the economic value of an investment, standing alone, does not establish that an indirect expropriation has occurred;

(ii) the extent to which the government action interferes with distinct, reasonable investment-backed expectations; and

(iii) the character of the government action.

(b) Non-discriminatory regulatory actions by a Party that are designed and applied to protect legitimate public welfare objectives, such as public health, safety and the environment, do not constitute indirect expropriations, except in rare circumstances.

ANNEX 9-C

EXPROPRIATION RELATING TO LAND

1. Notwithstanding the obligations under Article 9.8 (Expropriation and Compensation), where Singapore is the expropriating Party, any measure of direct expropriation relating to land shall be for a purpose and upon payment of compensation at market value, in accordance with the applicable domestic legislation38 and any subsequent amendments thereto relating to the amount of compensation where such amendments provide for the method of determination of the compensation which is no less favourable to the investor for its expropriated investment than such method of determination in the applicable domestic legislation as at the time of entry into force of this Agreement for Singapore.

2. Notwithstanding the obligations under Article 9.8 (Expropriation and Compensation), where Viet Nam is the expropriating Party, any measure of direct expropriation relating to land shall be: (i) for a purpose in accordance with the applicable domestic legislation; and (ii) upon payment of compensation equivalent to the market value, while recognising the applicable domestic legislation.

ANNEX 9-D

SERVICE OF DOCUMENTS ON A PARTY UNDER SECTION B (INVESTOR-STATE DISPUTE SETTLEMENT)

Australia

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Australia by delivery to:

Department of Foreign Affairs and Trade

R.G. Casey Building

John McEwen Crescent

Barton ACT 0221

Australia

Brunei Darussalam

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Brunei Darussalam by delivery to:

The Permanent Secretary (Trade)

Ministry of Foreign Affairs and Trade

Jalan Subok

Bandar Seri Begawan, BD 2710

Brunei Darussalam

Canada

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Canada by delivery to:

Office of the Deputy Attorney General of Canada

Justice Building

239 Wellington Street

Ottawa, Ontario

K1A 0H8

Canada

Chile

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Chile by delivery to:

Dirección de Asuntos Jurídicos del Ministerio de Relaciones Exteriores de la República de Chile

Teatinos 180

Santiago

Chile

Japan

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Japan by delivery to:

Economic Affairs Bureau

Ministry of Foreign Affairs

2-2-1 Kasumigaseki, Chiyoda-ku

Tokyo

Japan

Malaysia

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Malaysia by delivery to:

Attorney General's Chambers

Level 16, No. 45 Persiaran Perdana

Precint 4

Federal Government Administrative Centre

62100 Putrajaya

Malaysia

Mexico

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Mexico by delivery to:

Dirección General de Consultoría Jurídica de Comercio Internacional Secretaría de Economía

Alfonso Reyes #30, piso 17

Col. Hipódromo Condesa

Del. Cuauhtémoc

México D.F.

C.P. 06140

New Zealand

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on New Zealand by delivery to:

The Secretary

Ministry of Foreign Affairs and Trade

195 Lambton Quay

Wellington 6011

New Zealand

Peru

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Peru by delivery to:

Dirección General de Asuntos de Economía Internacional,

Competencia y Productividad

Ministerio de Economía y Finanzas

Jirón Lampa 277, piso 5

Lima, Perú

Singapore

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Singapore by delivery to:

Permanent Secretary

Ministry of Trade & Industry

100 High Street #09-01

Singapore 179434

Singapore

United States

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on the United States by delivery to:

Executive Director (L/EX)

Office of the Legal Adviser

Department of State

Washington, D.C.20520

United States of America

Viet Nam

Notices and other documents in disputes under Section B (Investor-State Dispute Settlement) shall be served on Viet Nam by delivery to:

General Director

Department of International Law

Ministry of Justice

60 Tran Phu Street

Ba Dinh District

Ha Noi

ANNEX 9-E

TRANSFERS

Chile

1. Notwithstanding Article 9.9 (Transfers), Chile reserves the right of the Central Bank of Chile (Banco Central de Chile) to maintain or adopt measures in conformity with Law 18.840, Constitutional Organic Law of the Central Bank of Chile (Ley 18.840, Ley Orgánica Constitucional del Banco Central de Chile), and Decreto con Fuerza de Ley No3 de 1997, Ley General de Bancos (General Banking Act) and Ley 18.045, Ley de Mercado de Valores (Securities Market Law), in order to ensure currency stability and the normal operation of domestic and foreign payments. Such measures include, inter alia, the establishment of restrictions or limitations on current payments and transfers (capital movements) to or from Chile, as well as transactions related to them, such as requiring that deposits, investments or credits from or to a foreign country, be subject to a reserve requirement (encaje).

2. Notwithstanding paragraph 1, the reserve requirements that the Central Bank of Chile can apply pursuant to Article 49 No. 2 of Law 18.840, shall not exceed 30 per cent of the amount transferred and shall not be imposed for a period which exceeds two years.

ANNEX 9-F

DL 600

Chile

1. The obligations and commitments contained in this Chapter do not apply to Decree Law 600, Foreign Investment Statute (Decreto Ley 600, Estatuto de la Inversión Extranjera) (hereinafter referred to in this Annex as "DL 600"), or its successors, and to Law 18.657, Foreign Capital Investment Fund Law (Ley 18.657, Ley de Fondos de Inversión de Capital Extranjero), with respect to:

(a) The right of the Foreign Investment Committee of Chile (Comité de Inversiones Extranjeras) or its successor to accept or reject applications to invest through an investment contract under DL 600 and the right to regulate the terms and conditions of foreign investment under DL 600 and Law 18.657.

(b) The right to maintain existing requirements that transfers from Chile of proceeds from the sale of all or any part of an investment of an investor of a Party or from the partial or complete liquidation of the investment which may not take place until a period not to exceed:

(i) in the case of an investment made pursuant to DL 600, one year from the date of transfer to Chile; or

(ii) in the case of an investment made pursuant to Law 18.657, five years from the date of transfer to Chile.

(c) The right to adopt measures, consistent with this Annex, establishing future special voluntary investment programmes in addition to the general regime for foreign investment in Chile, except that any such measures may restrict transfers from Chile of proceeds from the sale of all or any part of an investment of an investor of another Party or from the partial or complete liquidation of the investment for a period not to exceed five years from the date of transfer to Chile.

2. For greater certainty, except to the extent that paragraph 1(b) or (c) provides an exception to Article 9.9 (Transfers), the investment entered through an investment contract under DL 600, through Law 18.657 or through any future special voluntary investment programme, will be subject to the obligations and commitments of this Chapter, to the extent that the investment is a covered investment under Chapter 9 (Investment).

ANNEX 9-G

PUBLIC DEBT

1. The Parties recognise that the purchase of debt issued by a Party entails commercial risk. For greater certainty, no award shall be made in favour of a claimant for a claim under Article 9.19.1(a)(i)(A) (Submission of a Claim to Arbitration) or Article 9.19.1(b)(i)(A) with respect to default or non-payment of debt issued by a Party unless the claimant meets its burden of proving that such default or non-payment constitutes a breach of an obligation under Section A, including an uncompensated expropriation pursuant to Article 9.8 (Expropriation and Compensation).

2. No claim that a restructuring of debt issued by a Party breaches an obligation under Section A shall be submitted to, or if already submitted continue in, arbitration under Section B (Investor-State Dispute Settlement) if the restructuring is a negotiated restructuring at the time of submission, or becomes a negotiated restructuring after that submission, except for a claim that the restructuring violates Article 9.4 (National Treatment) or Article 9.5 (Most

Favoured-Nation Treatment).

3. Notwithstanding Article 9.19.4 (Submission of a Claim to Arbitration), and subject to paragraph 2, an investor of another Party shall not submit a claim under Section B (Investor-State Dispute Settlement) that a restructuring of debt issued by a Party breaches an obligation under Section A, other than Article 9.4 (National Treatment) or Article 9.5 (Most-Favoured-Nation Treatment), unless 270 days have elapsed from the date of receipt by the respondent of the written request for consultations pursuant to Article 9.18.2 (Consultation and Negotiation).

ANNEX 9-H

1. A decision under Australia's foreign investment policy, which consists of the Foreign Acquisitions and Takeovers Act 1975, Foreign Acquisitions and Takeovers Regulations 1989, Financial Sector (Shareholdings) Act 1998 and associated Ministerial Statements by the Treasurer of the Commonwealth of Australia or a minister acting on his or her behalf, on whether or not to approve a foreign investment proposal, shall not be subject to the dispute settlement provisions under Section B (Investor-State Dispute Settlement) or Chapter 28 (Dispute Settlement).

2. A decision by Canada following a review under the Investment Canada Act (R.S.C. 1985, c.28 (1st Supp.)), with respect to whether or not to permit an investment that is subject to review, shall not be subject to the dispute settlement provisions under Section B (Investor-State Dispute Settlement) or Chapter 28 (Dispute Settlement).

3. A decision by the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras) following a review pursuant to the entry at Annex I – Mexico – 6 with respect to whether or not to permit an acquisition that is subject to review, shall not be subject to the dispute settlement provisions of Section B (Investor-State Dispute Settlement) or Chapter 28 (Dispute Settlement).

4. A decision under New Zealand's Overseas Investment Act 2005 to grant consent, or to decline to grant consent, to an overseas investment transaction that requires prior consent under that Act shall not be subject to the dispute settlement provisions under Section B (Investor-State Dispute Settlement) or Chapter 28 (Dispute Settlement).

ANNEX 9-I

NON-CONFORMING MEASURES RATCHET MECHANISM

Notwithstanding Article 9.12.1(c) (Non-Conforming Measures), for Viet Nam for three years after the date of entry into force of this Agreement for it:

(a) Article 9.4 (National Treatment), Article 9.5 (Most-Favoured Nation Treatment), Article 9.10 (Performance Requirements) and Article 9.11 (Senior Management and Boards of Directors) shall not apply to an amendment to any non-conforming measure referred to in Article 9.12.1(a) (Non-Conforming Measures) to the extent that the amendment does not decrease the conformity of the measure, as it existed at the date of entry into force of this Agreement for Viet Nam, with Article 9.4 (National Treatment), Article 9.5 (Most-Favoured-Nation Treatment), Article 9.10 (Performance Requirements) or Article 9.11 (Senior Management and Boards of Directors);

(b) Viet Nam shall not withdraw a right or benefit from an investor or covered investment of another Party, in reliance on which the investor or covered investment has taken any concrete action, through an amendment to any non-conforming measure referred to in Article 9.12.1(a) (Non-Conforming Measures) that decreases the conformity of the measure as it existed immediately before the amendment; and

(c) Viet Nam shall provide to the other Parties the details of any amendment to a non-conforming measure referred to in Article 9.12.1(a) (Non-Conforming Measures) that would decrease the conformity of the measure, as it existed immediately before the amendment, at least 90 days before making the amendment.

ANNEX 9-J

SUBMISSION OF A CLAIM TO ARBITRATION

1. An investor of a Party may not submit to arbitration under Section B (Investor-State Dispute Settlement) a claim that Chile, Mexico, Peru or Viet Nam has breached an obligation under Section A either:

(a) on its own behalf under Article 9.19.1(a) (Submission of a Claim to Arbitration); or

(b) on behalf of an enterprise of Chile, Mexico, Peru, or Viet Nam, that is a juridical person that the investor owns or controls directly or indirectly under 9.19.1(b) (Submission of a Claim to Arbitration),

if the investor or the enterprise, respectively, has alleged that breach of an obligation under Section A in proceedings before a court or administrative tribunal of Chile, Mexico, Peru or Viet Nam.

2. For greater certainty, if an investor of a Party elects to submit a claim of the type described in paragraph 1 to a court or administrative tribunal of Chile, Mexico, Peru or Viet Nam, that election shall be definitive and exclusive, and the investor may not thereafter submit the claim to arbitration under Section B (Investor-State Dispute Settlement).

ANNEX 9-K

SUBMISSION OF CERTAIN CLAIMS

FOR THREE YEARS AFTER ENTRY INTO FORCE

Malaysia

Without prejudice to a claimant's right to submit other claims to arbitration pursuant to Article 9.19 (Submission of a Claim to Arbitration), Malaysia does not consent to the submission of a claim that Malaysia has breached a government procurement contract with a covered investment, below the specified contract value, for a period of three years after the date of entry into force of this Agreement for Malaysia. The specified contract values are: (a) for goods, SDR 1,500,000; (b) for services, SDR 2,000,000; and (c) for construction, SDR 63,000,000.

ANNEX 9-L

INVESTMENT AGREEMENTS

A. Agreements with selected international arbitration clauses

1. An investor of a Party may not submit to arbitration a claim for breach of an investment agreement under Article 9.19.1(a)(i)(C) (Submission of a Claim to Arbitration) or Article 9.19.1(b)(i)(C) if the investment agreement provides the respondent's consent for the investor to arbitrate the alleged breach of the investment agreement and further provides that:

(a) a claim may be submitted for breach of the investment agreement under at least one of the following alternatives:

(i) the ICSID Convention and the ICSID Rules of Procedure for Arbitration Proceedings, provided that both the respondent and the Party of the investor are parties to the ICSID Convention;

(ii) the ICSID Additional Facility Rules, provided that either the respondent or the Party of the investor is a party to the ICSID Convention;

(iii) the UNCITRAL Arbitration Rules;

(iv) the ICC Arbitration Rules; or

(v) the LCIA Arbitration Rules; and

(b) in the case of arbitration not under the ICSID Convention, the legal place of the arbitration shall be:

(i) in the territory of a State that is party to the New York Convention; and

(ii) outside the territory of the respondent.

2. Notwithstanding Article 9.21.2(b) (Conditions and Limitations on Consent of Each Party), if a claimant submits to arbitration a claim that the respondent has breached:

(a) an obligation under Section A pursuant to Article 9.19.1(a)(i)(A) (Submission of a Claim to Arbitration) or Article 9.19.1(b)(i)(A); or

(b) an investment authorisation pursuant to Article 9.19.1(a)(i)(B) (Submission of a Claim to Arbitration) or Article 9.19.1(b)(i)(B), the claimant's submission of a written waiver shall not preclude its right to initiate or continue an arbitration under an investment agreement, if that investment agreement meets the criteria in paragraph 1, with respect to any measure alleged to constitute a breach referred to in Article 9.19 (Submission of a Claim to Arbitration).

3. If a claimant:

(a) submits to arbitration a claim that the respondent has breached an obligation under Section A pursuant to Article 9.19.1(a)(i)(A) (Submission of a Claim to Arbitration) or Article 9.19.1(b)(i)(A) or an investment authorisation pursuant to Article 9.19.1(a)(i)(B) or Article 9.19.1(b)(i)(B); and

(b) submits a claim to arbitration under an investment agreement that meets the criteria in paragraph 1, and the claims have a question of law or fact in common and arise out of the same events or circumstances, any disputing party may seek a consolidation order in accordance with the agreement of all the disputing parties sought to be covered by the order or the terms of paragraphs 2 through 10 of Article 9.28 (Consolidation).

B. Certain agreements between Peru and covered investments or investors

1. Pursuant to Legislative Decrees 662 and 757, Peru may enter into agreements known as "stability agreements" with covered investments or investors of another Party.

2. As part of a stability agreement referred to in paragraph 1, Peru accords certain benefits to the covered investment or the investor that is a party to the agreement. These benefits typically include a commitment to maintain the existing income tax regime applicable to such covered investment or investor during a specified period of time.

3. A stability agreement referred to in paragraph 1 may constitute one of multiple written instruments that make up an "investment agreement", as defined in Article 9.1 (Definitions). If that is the case, a breach of such a stability agreement by Peru may constitute a breach of the investment agreement of which it is a part.

4. If a stability agreement does not constitute one of multiple instruments that make up an "investment agreement", as defined in Article 9.1 (Definitions), a breach of such a stability agreement by Peru shall not constitute a breach of an investment agreement.

C. Limitation of Mexico's consent to arbitration

1. Without prejudice to a claimant's right to submit other claims pursuant to Article 9.19 (Submission of a Claim to Arbitration), Mexico does not consent to the submission of any claim to arbitration under Article 9.19.1(a)(i)(C) or 9.19.1(b)(i)(C) if the submission to arbitration of that claim would be inconsistent with the following laws with respect to the relevant acts of authority:

(a) Hydrocarbons Law, Articles 20 and 21;

(b) Law on Public Works and Related Services, Article 98, paragraph 2;

(d) Law on Roads, Bridges, and Federal Motor Carriers, Article 80;

(e) Ports Law, Article 3, paragraph 2;

(f) Airports Law, Article 3, paragraph 2;

(g) Regulatory Law of the Railway Service, Article 4, paragraph 2;

(h) Commercial and Navigation Maritimes Law, Article 264, paragraph 2;

(i) Civil Aviation Law, Article 3, paragraph 2; and

(j) Political Constitution of the United Mexican States, Article 28, paragraph 20, subparagraph VII, and Federal Telecommunications and Broadcasting Law, Article 312, provided, however, that the application of the provisions referred to in subparagraphs (a) through (i) shall not be used as a disguised means to repudiate or breach the investment agreement.

2. If any law referred to in paragraph 1 is amended to permit the submission to arbitration of such a claim after the entry into force of this Agreement for Mexico, the limitation of Mexico's consent specified in paragraph 1 shall not apply with respect to that law.

D. Specific Canadian entities under subpart (c) of definition

For Canada, authority at the central level of government includes entities listed under Schedule III of the Financial Administration Act (R.S.C. 1985, c. F 11), and port or bridge authorities, that have concluded an investment agreement under subpart (c) of the definition of "investment agreement" only if the government directs or controls the day to day operations or activities of the entity or authority in carrying out its obligations under the investment agreement.

CHAPTER 10

CROSS-BORDER TRADE IN SERVICES

Article 10.1: Definitions

For the purposes of this Chapter:

airport operation services means the supply of air terminal, airfield and other airport infrastructure operation services on a fee or contract basis. Airport operation services do not include air navigation services;

computer reservation system services means services provided by computerised systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued;

cross-border trade in services or cross-border supply of services means the supply of a service:

(a) from the territory of a Party into the territory of another Party;

(b) in the territory of a Party to a person of another Party; or

but does not include the supply of a service in the territory of a Party by a covered investment;

enterprise means an enterprise as defined in Article 1.3 (General Definitions), and a branch of an enterprise;

enterprise of a Party means an enterprise constituted or organised under the laws of a Party, or a branch located in the territory of a Party and carrying out business activities there;

ground handling services means the supply at an airport, on a fee or contract basis, of the following services: airline representation, administration and supervision; passenger handling; baggage handling; ramp services; catering, except the preparation of the food; air cargo and mail handling; fuelling of an aircraft; aircraft servicing and cleaning; surface transport; and flight operations, crew administration and flight planning. Ground handling services do not include: self-handling; security; line maintenance; aircraft repair and maintenance; or management or operation of essential centralised airport infrastructure, such as de-icing facilities, fuel distribution systems, baggage handling systems and fixed intra-airport transport systems;

measures adopted or maintained by a Party means measures adopted or maintained by:

(a) central, regional, or local governments or authorities; or

(b) non-governmental bodies in the exercise of powers delegated by central, regional, or local governments or authorities;

selling and marketing of air transport services means opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services or the applicable conditions;

service supplied in the exercise of governmental authority means, for each Party, any service that is supplied neither on a commercial basis nor in competition with one or more service suppliers;

service supplier of a Party means a person of a Party that seeks to supply or supplies a service; and

specialty air services means any specialised commercial operation using an aircraft whose primary purpose is not the transportation of goods or passengers, such as aerial fire-fighting, flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, and helicopter-lift for logging and construction, and other airborne agricultural, industrial and inspection services.

Article 10.2: Scope

1. This Chapter shall apply to measures adopted or maintained by a Party affecting cross-border trade in services by service suppliers of another Party. Such measures include measures affecting:

(a) the production, distribution, marketing, sale or delivery of a service;

(b) the purchase or use of, or payment for, a service;

(c) the access to and use of distribution, transport or telecommunications networks and services in connection with the supply of a service;

(d) the presence in the Party's territory of a service supplier of another Party; and

(e) the provision of a bond or other form of financial security as a condition for the supply of a service.

2. In addition to paragraph 1:

(a) Article 10.5 (Market Access), Article 10.8 (Domestic Regulation) and Article 10.11 (Transparency) shall also apply to measures adopted or maintained by a Party affecting the supply of a service in its territory by a covered investment; and

(b) Annex 10-B (Express Delivery Services) shall also apply to measures adopted or maintained by a Party affecting the supply of express delivery services, including by a covered investment.

3. This Chapter shall not apply to:

(a) financial services as defined in Article 11.1 (Definitions), except that paragraph 2(a) shall apply if the financial service is supplied by a covered investment that is not a covered investment in a financial institution as defined in Article 11.1 (Definitions) in the Party's territory;

(b) government procurement;

(d) subsidies or grants provided by a Party, including government supported loans, guarantees and insurance.

4. This Chapter does not impose any obligation on a Party with respect to a national of another Party who seeks access to its employment market or who is employed on a permanent basis in its territory, and does not confer any right on that national with respect to that access or employment.

5. This Chapter shall not apply to air services, including domestic and international air transportation services, whether scheduled or non-scheduled, or to related services in support of air services, other than the following:

(a) aircraft repair and maintenance services during which an aircraft is withdrawn from service, excluding so-called line maintenance;

(b) selling and marketing of air transport services;

(d) specialty air services;

(e) airport operation services; and

(f) ground handling services.

6. In the event of any inconsistency between this Chapter and a bilateral, plurilateral or multilateral air services agreement to which two or more Parties are party, the air services agreement shall prevail in determining the rights and obligations of those Parties that are party to that air services agreement.

7. If two or more Parties have the same obligations under this Agreement and a bilateral, plurilateral or multilateral air services agreement, those Parties may invoke the dispute settlement procedures of this Agreement only after any dispute settlement procedures in the other agreement have been exhausted.

8. If the Annex on Air Transport Services of GATS is amended, the Parties shall jointly review any new definitions with a view to aligning the definitions in this Agreement with those definitions, as appropriate.

Article 10.3: National Treatment

1. Each Party shall accord to services and service suppliers of another Party treatment no less favourable than that it accords, in like circumstances, to its own services and service suppliers.

2. For greater certainty, the treatment to be accorded by a Party under paragraph 1 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment accorded, in like circumstances, by that regional level of government to service suppliers of the Party of which it forms a part.

Article 10.4: Most-Favoured-Nation Treatment

Each Party shall accord to services and service suppliers of another Party treatment no less favourable than that it accords, in like circumstances, to services and service suppliers of any other Party or a non-Party.

Article 10.5: Market Access

No Party shall adopt or maintain, either on the basis of a regional subdivision or on the basis of its entire territory, measures that:

(a) impose limitations on:

(i) the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;

(ii) the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;

(iii) the total number of service operations or the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; or

(iv) the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; or

(b) restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service.

Article 10.6: Local Presence

No Party shall require a service supplier of another Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border supply of a service.

Article 10.7: Non-Conforming Measures

1. Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access) and Article 10.6 (Local Presence) shall not apply to:

(a) any existing non-conforming measure that is maintained by a Party at:

(i) the central level of government, as set out by that Party in its Schedule to Annex I;

(ii) a regional level of government, as set out by that Party in its Schedule to Annex I; or

(iii) a local level of government;

(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or

(c) an amendment to any non-conforming measure referred to in subparagraph (a), to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access) or Article 10.6 (Local Presence).

2. Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access) and Article 10.6 (Local Presence) shall not apply to any measure that a Party adopts or maintains with respect to sectors, sub-sectors or activities, as set out by that Party in its Schedule to Annex II.

3 If a Party considers that a non-conforming measure applied by a regional level of government of another Party, as referred to in subparagraph 1(a)(ii), creates a material impediment to the cross-border supply of services in relation to the former Party, it may request consultations with regard to that measure. These Parties shall enter into consultations with a view to exchanging information on the operation of the measure and to considering whether further steps are necessary and appropriate.

Article 10.8: Domestic Regulation

1. Each Party shall ensure that all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner.

2. With a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, while recognising the right to regulate and to introduce new regulations on the supply of services in order to meet its policy objectives, each Party shall endeavour to ensure that any such measures that it adopts or maintains are:

(a) based on objective and transparent criteria, such as competence and the ability to supply the service; and

(b) in the case of licensing procedures, not in themselves a restriction on the supply of the service.

3. In determining whether a Party is in conformity with its obligations under paragraph 2, account shall be taken of international standards of relevant international organisations applied by that Party.

4. If a Party requires authorisation for the supply of a service, it shall ensure that its competent authorities:

(a) within a reasonable period of time after the submission of an application considered complete under its laws and regulations, inform the applicant of the decision concerning the application;

(b) to the extent practicable, establish an indicative timeframe for the processing of an application;

(c) if an application is rejected, to the extent practicable, inform the applicant of the reasons for the rejection, either directly or on request, as appropriate;

(d) on request of the applicant, provide, without undue delay, information concerning the status of the application;

(e) to the extent practicable, provide the applicant with the opportunity to correct minor errors and omissions in the application and endeavour to provide guidance on the additional information required; and

(f) if they deem appropriate, accept copies of documents that are authenticated in accordance with the Party's laws in place of original documents.

5. Each Party shall ensure that any authorisation fee charged by any of its competent authorities is reasonable, transparent and does not, in itself, restrict the supply of the relevant service.

6. If licensing or qualification requirements include the completion of an examination, each Party shall ensure that:

(a) the examination is scheduled at reasonable intervals; and

(b) a reasonable period of time is provided to enable interested persons to submit an application.

7. Each Party shall ensure that there are procedures in place domestically to assess the competency of professionals of another Party.

8. Paragraphs 1 through 7 shall not apply to the non-conforming aspects of measures that are not subject to the obligations under Article 10.3 (National Treatment) or Article 10.5 (Market Access) by reason of an entry in a Party's Schedule to Annex I, or to measures that are not subject to the obligations under Article 10.3 (National Treatment) or Article 10.5 (Market Access) by reason of an entry in a Party's Schedule to Annex II.

9. If the results of the negotiations related to paragraph 4 of Article VI of GATS, or the results of any similar negotiations undertaken in other multilateral fora in which the Parties participate, enter into effect, the Parties shall jointly review these results with a view to bringing them into effect, as appropriate, under this Agreement.

Article 10.9: Recognition

1. For the purposes of the fulfilment, in whole or in part, of a Party's standards or criteria for the authorisation, licensing or certification of service suppliers, and subject to the requirements of paragraph 4, it may recognise the education or experience obtained, requirements met, or licences or certifications granted, in the territory of another Party or a non-Party. That recognition, which may be achieved through harmonisation or otherwise, may be based on an agreement or arrangement with the Party or non-Party concerned, or may be accorded autonomously.

2. If a Party recognises, autonomously or by agreement or arrangement, the education or experience obtained, requirements met, or licences or certifications granted, in the territory of another Party or a non-Party, nothing in Article 10.4 (Most-Favoured-Nation Treatment) shall be construed to require the Party to accord recognition to the education or experience obtained, requirements met, or licences or certifications granted, in the territory of any other Party.

3. A Party that is a party to an agreement or arrangement of the type referred to in paragraph 1, whether existing or future, shall afford adequate opportunity to another Party, on request, to negotiate its accession to that agreement or arrangement, or to negotiate a comparable agreement or arrangement. If a Party accords recognition autonomously, it shall afford adequate opportunity to another Party to demonstrate that education, experience, licences or certifications obtained or requirements met in that other Party's territory should be recognised.

4. A Party shall not accord recognition in a manner that would constitute a means of discrimination between Parties or between Parties and non-Parties in the application of its standards or criteria for the authorisation, licensing or certification of service suppliers, or a disguised restriction on trade in services.

5. As set out in Annex 10-A (Professional Services), the Parties shall endeavour to facilitate trade in professional services, including through the establishment of a Professional Services Working Group.

Article 10.10: Denial of Benefits

1. A Party may deny the benefits of this Chapter to a service supplier of another Party if the service supplier is an enterprise owned or controlled by persons of a non-Party, and the denying Party adopts or maintains measures with respect to the non-Party or a person of the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapter were accorded to the enterprise.

2. A Party may deny the benefits of this Chapter to a service supplier of another Party if the service supplier is an enterprise owned or controlled by persons of a non-Party or by persons of the denying Party that has no substantial business activities in the territory of any Party other than the denying Party.

Article 10.11: Transparency

1. Each Party shall maintain or establish appropriate mechanisms for responding to inquiries from interested persons regarding its regulations that relate to the subject matter of this Chapter.8

2. If a Party does not provide advance notice and opportunity for comment pursuant to Article 26.2.2 (Publication) with respect to regulations that relate to the subject matter in this Chapter, it shall, to the extent practicable, provide in writing or otherwise notify interested persons of the reasons for not doing so.

3. To the extent possible, each Party shall allow reasonable time between publication of final regulations and the date when they enter into effect.

Article 10.12: Payments and Transfers

1. Each Party shall permit all transfers and payments that relate to the cross border supply of services to be made freely and without delay into and out of its territory.

2. Each Party shall permit transfers and payments that relate to the cross border supply of services to be made in a freely usable currency at the market rate of exchange that prevails at the time of transfer.

3. Notwithstanding paragraphs 1 and 2, a Party may prevent or delay a transfer or payment through the equitable, non-discriminatory and good faith application of its laws that relate to:

(a) bankruptcy, insolvency or the protection of the rights of creditors;

(b) issuing, trading or dealing in securities, futures, options or derivatives;

(c) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities;

(d) criminal or penal offences; or

(e) ensuring compliance with orders or judgments in judicial or administrative proceedings.

Article 10.13: Other Matters

The Parties recognise the importance of air services in facilitating the expansion of trade and enhancing economic growth. Each Party may consider working with other Parties in appropriate fora toward liberalising air services, such as through agreements allowing air carriers to have flexibility to decide on their routing and frequencies.

ANNEX 10-A

PROFESSIONAL SERVICES

General Provisions

1. Each Party shall consult with relevant bodies in its territory to seek to identify professional services when two or more Parties are mutually interested in establishing dialogue on issues that relate to the recognition of professional qualifications, licensing or registration.

2. Each Party shall encourage its relevant bodies to establish dialogues with the relevant bodies of other Parties, with a view to recognising professional qualifications, and facilitating licensing or registration procedures.

3. Each Party shall encourage its relevant bodies to take into account agreements that relate to professional services in the development of agreements on the recognition of professional qualifications, licensing and registration.

4. A Party may consider, if feasible, taking steps to implement a temporary or project specific licensing or registration regime based on a foreign supplier's home licence or recognised professional body membership, without the need for further written examination. That temporary or limited licence regime should not operate to prevent a foreign supplier from gaining a local licence once that supplier satisfies the applicable local licensing requirements.

Engineering and Architectural Services

5. Further to paragraph 3, the Parties recognise the work in APEC to promote the mutual recognition of professional competence in engineering and architecture, and the professional mobility of these professions, under the APEC Engineer and APEC Architect frameworks.

6. Each Party shall encourage its relevant bodies to work towards becoming authorised to operate APEC Engineer and APEC Architect Registers.

7. A Party shall encourage its relevant bodies operating APEC Engineer or APEC Architect Registers to enter into mutual recognition arrangements with the relevant bodies of other Parties operating those registers.

Temporary Licensing or Registration of Engineers

8. Further to paragraph 4, in taking steps to implement a temporary or project-specific licensing or registration regime for engineers, a Party shall consult with its relevant professional bodies with respect to any recommendations for:

(a) the development of procedures for the temporary licensing or registration of engineers of another Party to permit them to practise their engineering specialties in its territory;

(b) the development of model procedures for adoption by the competent authorities throughout its territory to facilitate the temporary licensing or registration of those engineers;

(c) the engineering specialties to which priority should be given in developing temporary licensing or registration procedures; and

(d) other matters relating to the temporary licensing or registration of engineers identified in the consultations.

Legal Services

9. The Parties recognise that transnational legal services that cover the laws of multiple jurisdictions play an essential role in facilitating trade and investment and in promoting economic growth and business confidence.

10. If a Party regulates or seeks to regulate foreign lawyers and transnational legal practice, the Party shall encourage its relevant bodies to consider, subject to its laws and regulations, whether or in what manner:

(a) foreign lawyers may practise foreign law on the basis of their right to practise that law in their home jurisdiction;

(b) foreign lawyers may prepare for and appear in commercial arbitration, conciliation and mediation proceedings;

(c) local ethical, conduct and disciplinary standards are applied to foreign lawyers in a manner that is no more burdensome for foreign lawyers than the requirements imposed on domestic (host country) lawyers;

(d) alternatives for minimum residency requirements are provided for foreign lawyers, such as requirements that foreign lawyers disclose to clients their status as a foreign lawyer, or maintain professional indemnity insurance or alternatively disclose to clients that they lack that insurance;

(e) the following modes of providing transnational legal services are accommodated:

(i) on a temporary fly-in, fly-out basis;

(ii) through the use of web-based or telecommunications

technology;

(iii) by establishing a commercial presence; and

(iv) through a combination of fly-in, fly-out and one or both of the other modes listed in subparagraphs (ii) and (iii);

(f) foreign lawyers and domestic (host country) lawyers may work together in the delivery of fully integrated transnational legal services; and

(g) a foreign law firm may use the firm name of its choice.

Professional Services Working Group

11. The Parties hereby establish a Professional Services Working Group (Working Group), composed of representatives of each Party, to facilitate the activities listed in paragraphs 1 through 4.

12. The Working Group shall liaise, as appropriate, to support the Parties' relevant professional and regulatory bodies in pursuing the activities listed in paragraphs 1 through 4. This support may include providing points of contact, facilitating meetings and providing information regarding regulation of professional services in the Parties' territories.

13. The Working Group shall meet annually, or as agreed by the Parties, to discuss progress towards the objectives in paragraphs 1 through 4. For a meeting to be held, at least two Parties must participate. It is not necessary for representatives of all Parties to participate in order to hold a meeting of the Working Group.

14. The Working Group shall report to the Commission on its progress and on the future direction of its work, within two years of the date of entry into force of this Agreement.

15. Decisions of the Working Group shall have effect only in relation to those Parties that participated in the meeting at which the decision was taken, except if:

(a) otherwise agreed by all Parties; or

(b) a Party that did not participate in the meeting requests to be covered by the decision and all Parties originally covered by the decision agree.

ANNEX 10-B

EXPRESS DELIVERY SERVICES

1. For the purposes of this Annex, express delivery services means the collection, transport and delivery of documents, printed matter, parcels, goods or other items, on an expedited basis, while tracking and maintaining control of these items throughout the supply of the service. Express delivery services do not include air transport services, services supplied in the exercise of governmental authority, or maritime transport services.

2. For the purposes of this Annex, postal monopoly means a measure maintained by a Party making a postal operator within the Party's territory the exclusive supplier of specified collection, transport and delivery services.

3. Each Party that maintains a postal monopoly shall define the scope of the monopoly on the basis of objective criteria, including quantitative criteria such as price or weight thresholds.12

4. The Parties confirm their desire to maintain at least the level of market openness for express delivery services that each provides on the date of its signature of this Agreement. If a Party considers that another Party is not maintaining that level of market openness, it may request consultations. The other Party shall afford adequate opportunity for consultations and, to the extent possible, provide information in response to inquiries regarding the level of market openness and any related matter.

5. No Party shall allow a supplier of services covered by a postal monopoly to cross-subsidise its own or any other competitive supplier's express delivery services with revenues derived from monopoly postal services.

6. Each Party shall ensure that any supplier of services covered by a postal monopoly does not abuse its monopoly position to act in the Party's territory in a manner inconsistent with the Party's commitments under Article 9.4 (National Treatment), Article 10.3 (National Treatment) or Article 10.5 (Market Access) with respect to the supply of express delivery services.

7. No Party shall:

(a) require an express delivery service supplier of another Party, as a condition of authorisation or licensing, to supply a basic universal postal service; or

(b) assess fees or other charges exclusively on express delivery service suppliers for the purpose of funding the supply of another delivery service.

8. Each Party shall ensure that any authority responsible for regulating express delivery services is not accountable to any supplier of express delivery services, and that the decisions and procedures that the authority adopts are impartial, non-discriminatory and transparent with respect to all express delivery service suppliers in its territory.

ANNEX 10-C

NON-CONFORMING MEASURES RATCHET MECHANISM

Notwithstanding Article 10.7.1(c) (Non-Conforming Measures), for Viet Nam for three years after the date of entry into force of this Agreement for it:

(a) Article 10.3 (National Treatment), Article 10.4 (Most-Favoured Nation Treatment), Article 10.5 (Market Access) and Article 10.6 (Local Presence) shall not apply to an amendment to any non conforming measure referred to in Article 10.7.1(a) (Non Conforming Measures) to the extent that the amendment does not decrease the conformity of the measure, as it existed at the date of entry into force of this Agreement for Viet Nam, with Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 10.5 (Market Access) or Article 10.6 (Local Presence);

(b) Viet Nam shall not withdraw a right or benefit from a service supplier of another Party, in reliance on which the service supplier has taken any concrete action, through an amendment to any non conforming measure referred to in Article 10.7.1(a) (Non Conforming Measures) that decreases the conformity of the measure as it existed immediately before the amendment; and

(c) Viet Nam shall provide to the other Parties the details of any amendment to any non-conforming measure referred to in Article 10.7.1(a) (Non-Conforming Measures) that would decrease the conformity of the measure, as it existed immediately before the amendment, at least 90 days before making the amendment.

CHAPTER 11

FINANCIAL SERVICES

Article 11.1: Definitions

For the purposes of this Chapter:

cross-border financial service supplier of a Party means a person of a Party that is engaged in the business of supplying a financial service within the territory of the Party and that seeks to supply or supplies a financial service through the cross-border supply of such a service;

cross-border trade in financial services or cross-border supply of financial services means the supply of a financial service:

(a) from the territory of a Party into the territory of another Party;

(b) in the territory of a Party to a person of another Party; or

but does not include the supply of a financial service in the territory of a Party by an investment in that territory;

financial institution means any financial intermediary or other enterprise that is authorised to do business and regulated or supervised as a financial institution under the law of the Party in whose territory it is located;

financial institution of another Party means a financial institution, including a branch, located in the territory of a Party that is controlled by persons of another Party;

financial service means any service of a financial nature. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance), as well as services incidental or auxiliary to a service of a financial nature. Financial services include the following activities:

Insurance and insurance-related services

(a) direct insurance (including co-insurance):

(i) life;

(ii) non-life;

(b) reinsurance and retrocession;

(d) services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services; Banking and other financial services (excluding insurance)

(e) acceptance of deposits and other repayable funds from the public;

(f) lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;

(g) financial leasing;

(h) all payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts;

(i) guarantees and commitments;

(j) trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:

(i) money market instruments (including cheques, bills, certificates of deposits);

(ii) foreign exchange;

(iii) derivative products, including futures and options;

(iv) exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;

(v) transferable securities; and

(vi) other negotiable instruments and financial assets, including bullion;

(k) participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;

(l) money broking;

(m) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;

(n) settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;

(o) provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services; and

(p) advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (e) through (o), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy;

financial service supplier of a Party means a person of a Party that is engaged in the business of supplying a financial service within the territory of that Party;

investment means "investment" as defined in Article 9.1 (Definitions), except that, with respect to "loans" and "debt instruments" referred to in that Article:

(a) a loan to or debt instrument issued by a financial institution is an investment only if it is treated as regulatory capital by the Party in whose territory the financial institution is located; and

(b) a loan granted by or debt instrument owned by a financial institution, other than a loan to or debt instrument issued by a financial institution referred to in subparagraph (a), is not an investment;

for greater certainty, a loan granted by or debt instrument owned by a cross-border financial service supplier, other than a loan to or debt instrument issued by a financial institution, is an investment for the purposes of Chapter 9 (Investment), if such loan or debt instrument meets the criteria for investments set out in Article 9.1 (Definitions);

investor of a Party means a Party, or a person of a Party, that attempts to make1, is making, or has made an investment in the territory of another Party;

new financial service means a financial service not supplied in the Party's territory that is supplied within the territory of another Party, and includes any new form of delivery of a financial service or the sale of a financial product that is not sold in the Party's territory;

person of a Party means "person of a Party" as defined in Article 1.3 (General Definitions) and, for greater certainty, does not include a branch of an enterprise of a non-Party;

public entity means a central bank or monetary authority of a Party, or any financial institution that is owned or controlled by a Party; and

self-regulatory organisation means any non-governmental body, including any securities or futures exchange or market, clearing agency, or other organisation or association, that exercises regulatory or supervisory authority over financial service suppliers or financial institutions by statute or delegation from central or regional government.

Article 11.2: Scope

1. This Chapter shall apply to measures adopted or maintained by a Party relating to:

(a) financial institutions of another Party;

(b) investors of another Party, and investments of those investors, in financial institutions in the Party's territory; and

2. Chapter 9 (Investment) and Chapter 10 (Cross-Border Trade in Services) shall apply to measures described in paragraph 1 only to the extent that those Chapters or Articles of those Chapters are incorporated into this Chapter.

(a) Article 9.6 (Minimum Standard of Treatment), Article 9.7 (Treatment in the Case of Armed Conflict or Civil Strife), Article 9.8 (Expropriation and Compensation), Article 9.9 (Transfers), Article 9.14 (Special Formalities and Information Requirements), Article 9.15 (Denial of Benefits), Article 9.16 (Investment and Environmental, Health and other Regulatory Objectives) and Article 10.10 (Denial of Benefits) are hereby incorporated into and made a part of this Chapter.

(b) Section B of Chapter 9 (Investment) is hereby incorporated into and made a part of this Chapter2 solely for claims that a Party has breached Article 9.6 (Minimum Standard of Treatment)3, Article 9.7 (Treatment in the Case of Armed Conflict or Civil Strife), Article 9.8 (Expropriation and Compensation), Article 9.9 (Transfers), Article 9.14 (Special Formalities and Information Requirements) and Article 9.15 (Denial of Benefits) incorporated into this Chapter under subparagraph (a).4

(c) Article 10.12 (Payments and Transfers) is incorporated into and made a part of this Chapter to the extent that cross-border trade in financial services is subject to obligations pursuant to Article 11.6 (Cross-Border Trade).

3. This Chapter shall not apply to measures adopted or maintained by a Party relating to:

(a) activities or services forming part of a public retirement plan or statutory system of social security; or

(b) activities or services conducted for the account or with the guarantee or using the financial resources of the Party, including its public entities, except that this Chapter shall apply to the extent that a Party allows any of the activities or services referred to in subparagraph (a) or (b) to be conducted by its financial institutions in competition with a public entity or a financial institution.

4. This Chapter shall not apply to government procurement of financial services.

5. This Chapter shall not apply to subsidies or grants with respect to the cross-border supply of financial services, including government-supported loans, guarantees and insurance.

Article 11.3: National Treatment5

1. Each Party shall accord to investors of another Party treatment no less favourable than that it accords to its own investors, in like circumstances, with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of financial institutions and investments in financial institutions in its territory.

2. Each Party shall accord to financial institutions of another Party, and to investments of investors of another Party in financial institutions, treatment no less favourable than that it accords to its own financial institutions, and to investments of its own investors in financial institutions, in like circumstances, with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of financial institutions and investments.

3. For greater certainty, the treatment to be accorded by a Party under paragraphs 1 and 2 means, with respect to a regional level of government, treatment no less favourable than the most favourable treatment accorded, in like circumstances, by that regional level of government to investors, financial institutions and investments of investors in financial institutions, of the Party of which it forms a part.

4. For the purposes of the national treatment obligations in Article 11.6.1 (Cross-Border Trade), a Party shall accord to cross-border financial service suppliers of another Party treatment no less favourable than that it accords to its own financial service suppliers, in like circumstances, with respect to the supply of the relevant service.

Article 11.4: Most-Favoured-Nation Treatment

1. Each Party shall accord to:

(a) investors of another Party, treatment no less favourable than that it accords to investors of any other Party or of a non-Party, in like circumstances;

(b) financial institutions of another Party, treatment no less favourable than that it accords to financial institutions of any other Party or of a non-Party, in like circumstances;

(c) investments of investors of another Party in financial institutions, treatment no less favourable than that it accords to investments of investors of any other Party or of a non-Party in financial institutions, in like circumstances; and

(d) cross-border financial service suppliers of another Party, treatment no less favourable than that it accords to cross-border financial service suppliers of any other Party or of a non-Party, in like circumstances.

2. For greater certainty, the treatment referred to in paragraph 1 does not encompass international dispute resolution procedures or mechanisms such as those included in Article 11.2.2(b) (Scope).

Article 11.5: Market Access for Financial Institutions

No Party shall adopt or maintain with respect to financial institutions of another Party or investors of another Party seeking to establish those institutions, either on the basis of a regional subdivision or on the basis of its entire territory, measures that:

(a) impose limitations on:

(i) the number of financial institutions whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;

(ii) the total value of financial service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;

(iii) the total number of financial service operations or the total quantity of financial services output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;6 or

(iv) the total number of natural persons that may be employed in a particular financial service sector or that a financial institution may employ and who are necessary for, and directly related to, the supply of a specific financial service in the form of numerical quotas or the requirement of an economic needs test; or

(b) restrict or require specific types of legal entity or joint venture through which a financial institution may supply a service.

Article 11.6: Cross-Border Trade

1. Each Party shall permit, under terms and conditions that accord national treatment, cross-border financial service suppliers of another Party to supply the financial services specified in Annex 11-A (Cross-Border Trade).

2. Each Party shall permit persons located in its territory, and its nationals wherever located, to purchase financial services from cross-border financial service suppliers of another Party located in the territory of a Party other than the permitting Party. This obligation does not require a Party to permit those suppliers to do business or solicit in its territory. A Party may define "doing business" and "solicitation" for the purposes of this obligation provided that those definitions are not inconsistent with paragraph 1.

3. Without prejudice to other means of prudential regulation of cross-border trade in financial services, a Party may require the registration or authorisation of cross-border financial service suppliers of another Party and of financial instruments.

Article 11.7: New Financial Services7

Each Party shall permit a financial institution of another Party to supply a new financial service that the Party would permit its own financial institutions, in like circumstances, to supply without adopting a law or modifying an existing law.8 Notwithstanding Article 11.5(b) (Market Access for Financial Institutions), a Party may determine the institutional and juridical form through which the new financial service may be supplied and may require authorisation for the supply of the service. If a Party requires a financial institution to obtain authorisation to supply a new financial service, the Party shall decide within a reasonable period of time whether to issue the authorisation and may refuse the authorisation only for prudential reasons.

Article 11.8: Treatment of Certain Information

Nothing in this Chapter shall require a Party to furnish or allow access to:

(a) information related to the financial affairs and accounts of individual customers of financial institutions or cross-border financial service suppliers; or

(b) any confidential information, the disclosure of which would impede law enforcement or otherwise be contrary to the public interest or prejudice legitimate commercial interests of particular enterprises.

Article 11.9: Senior Management and Boards of Directors

1. No Party shall require financial institutions of another Party to engage natural persons of any particular nationality as senior managerial or other essential personnel.

2. No Party shall require that more than a minority of the board of directors of a financial institution of another Party be composed of nationals of the Party, persons residing in the territory of the Party, or a combination thereof.

Article 11.10: Non-Conforming Measures

1. Article 11.3 (National Treatment), Article 11.4 (Most-Favoured-Nation Treatment), Article 11.5 (Market Access for Financial Institutions), Article 11.6 (Cross-Border Trade) and Article 11.9 (Senior Management and Boards of Directors) shall not apply to:

(a) any existing non-conforming measure that is maintained by a Party at:

(i) the central level of government, as set out by that Party in Section A of its Schedule to Annex III;

(ii) a regional level of government, as set out by that Party in Section A of its Schedule to Annex III; or

(iii) a local level of government;

(b) the continuation or prompt renewal of any non-conforming measure referred to in subparagraph (a); or

(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the extent that the amendment does not decrease the conformity of the measure as it existed:9

(i) immediately before the amendment, with Article 11.3 (National Treatment), Article 11.4 (Most-Favoured-Nation Treatment), Article 11.5 (Market Access for Financial Institutions) or Article 11.9 (Senior Management and Boards of Directors); or

(ii) on the date of entry into force of the Agreement for the Party applying the non-conforming measure, with Article 11.6 (Cross-Border Trade).

2. Article 11.3 (National Treatment), Article 11.4 (Most-Favoured-Nation Treatment), Article 11.5 (Market Access for Financial Institutions), Article 11.6 (Cross-Border Trade) and Article 11.9 (Senior Management and Boards of Directors) shall not apply to any measure that a Party adopts or maintains with respect to sectors, subsectors or activities, as set out by that Party in Section B of its Schedule to Annex III.

3. A non-conforming measure, set out in a Party's Schedule to Annex I or II as not subject to Article 9.4 (National Treatment), Article 9.5 (Most-Favoured Nation Treatment), Article 9.11 (Senior Management and Boards of Directors), Article 10.3 (National Treatment) or Article 10.4 (Most-Favoured-Nation Treatment), shall be treated as a non-conforming measure not subject to Article 11.3 (National Treatment), Article 11.4 (Most-Favoured-Nation Treatment) or Article 11.9 (Senior Management and Boards of Directors), as the case may be, to the extent that the measure, sector, subsector or activity set out in the entry is covered by this Chapter.

4. (a) Article 11.3 (National Treatment) shall not apply to any measure that falls within an exception to, or derogation from, the obligations which are imposed by:

(i) Article 18.8 (National Treatment); or

(ii) Article 3 of the TRIPS Agreement, if the exception or derogation relates to matters not addressed by Chapter 18 (Intellectual Property).

(b) Article 11.4 (Most-Favoured-Nation Treatment) shall not apply to any measure that falls within Article 5 of the TRIPS Agreement, or an exception to, or derogation from, the obligations which are imposed by:

(i) Article 18.8 (National Treatment); or

(ii) Article 4 of the TRIPS Agreement.

Article 11.11: Exceptions

1. Notwithstanding any other provisions of this Chapter and Agreement except for Chapter 2 (National Treatment and Market Access for Goods), Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Textiles and Apparel), Chapter 5 (Customs Administration and Trade Facilitation), Chapter 6 (Trade Remedies), Chapter 7 (Sanitary and Phytosanitary Measures) and Chapter 8 (Technical Barriers to Trade), a Party shall not be prevented from adopting or maintaining measures for prudential reasons, including for the protection of investors, depositors, policy holders, or persons to whom a fiduciary duty is owed by a financial institution or cross-border financial service supplier, or to ensure the integrity and stability of the financial system. If these measures do not conform with the provisions of this Agreement to which this exception applies, they shall not be used as a means of avoiding the Party's commitments or obligations under those provisions.

2. Nothing in this Chapter, Chapter 9 (Investment), Chapter 10 (Cross Border Trade in Services), Chapter 13 (Telecommunications) including specifically Article 13.24 (Relation to Other Chapters), or Chapter 14 (Electronic Commerce), shall apply to non-discriminatory measures of general application taken by any public entity in pursuit of monetary and related credit policies or exchange rate policies. This paragraph shall not affect a Party's obligations under Article 9.10 (Performance Requirements) with respect to measures covered by Chapter 9 (Investment), under Article 9.9 (Transfers) or Article 10.12 (Payments and Transfers).

3. Notwithstanding Article 9.9 (Transfers) and Article 10.12 (Payments and Transfers), as incorporated into this Chapter, a Party may prevent or limit transfers by a financial institution or cross-border financial service supplier to, or for the benefit of, an affiliate of or person related to such institution or supplier, through the equitable, non-discriminatory and good faith application of measures relating to maintenance of the safety, soundness, integrity, or financial responsibility of financial institutions or cross-border financial service suppliers. This paragraph does not prejudice any other provision of this Agreement that permits a Party to restrict transfers.

4. For greater certainty, nothing in this Chapter shall be construed to prevent a Party from adopting or enforcing measures necessary to secure compliance with laws or regulations that are not inconsistent with this Chapter, including those relating to the prevention of deceptive and fraudulent practices or to deal with the effects of a default on financial services contracts, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between Parties or between Parties and non-Parties where like conditions prevail, or a disguised restriction on investment in financial institutions or cross-border trade in financial services as covered by this Chapter.

Article 11.12: Recognition

1. A Party may recognise prudential measures of another Party or a non Party in the application of measures covered by this Chapter.12 That recognition may be:

(a) accorded autonomously;

(b) achieved through harmonisation or other means; or

2. A Party that accords recognition of prudential measures under paragraph 1 shall provide adequate opportunity to another Party to demonstrate that circumstances exist in which there are or would be equivalent regulation, oversight, implementation of regulation and, if appropriate, procedures concerning the sharing of information between the relevant Parties.

3. If a Party accords recognition of prudential measures under paragraph 1(c) and the circumstances set out in paragraph 2 exist, that Party shall provide adequate opportunity to another Party to negotiate accession to the agreement or arrangement, or to negotiate a comparable agreement or arrangement.

Article 11.13: Transparency and Administration of Certain Measures

1. The Parties recognise that transparent regulations and policies governing the activities of financial institutions and cross-border financial service suppliers are important in facilitating their ability to gain access to and operate in each other's markets. Each Party commits to promote regulatory transparency in financial services.

2. Each Party shall ensure that all measures of general application to which this Chapter applies are administered in a reasonable, objective and impartial manner.

3. Paragraphs 2, 3 and 4 of Article 26.2 (Publication), shall not apply to regulations of general application relating to the subject matter of this Chapter. Each Party shall, to the extent practicable:

(a) publish in advance any such regulation that it proposes to adopt and the purpose of the regulation; and

(b) provide interested persons and other Parties with a reasonable opportunity to comment on that proposed regulation.

4. At the time that it adopts a final regulation, a Party should, to the extent practicable, address in writing the substantive comments received from interested persons with respect to the proposed regulation.13

5. To the extent practicable, each Party should allow a reasonable period of time between publication of a final regulation of general application and the date when it enters into effect.

6. Each Party shall ensure that the rules of general application adopted or maintained by a self-regulatory organisation of the Party are promptly published or otherwise made available in a manner that enables interested persons to become acquainted with them.

7. Each Party shall maintain or establish appropriate mechanisms for responding to inquiries from interested persons regarding measures of general application covered by this Chapter.

8. Each Party's regulatory authorities shall make publicly available the requirements, including any documentation required, for completing an application relating to the supply of financial services.

9. On request of an applicant, a Party's regulatory authority shall inform the applicant of the status of its application. If the authority requires additional information from the applicant, it shall notify the applicant without undue delay.

10. A Party's regulatory authority shall make an administrative decision on a complete application of an investor in a financial institution, a financial institution or a cross-border financial service supplier of another Party relating to the supply of a financial service, within 120 days and shall promptly notify the applicant of the decision. An application shall not be considered complete until all relevant hearings have been held and all necessary information has been received. If it is not practicable for a decision to be made within 120 days, the regulatory authority shall notify the applicant without undue delay and shall endeavour to make the decision within a reasonable period of time thereafter.

11. On request of an unsuccessful applicant, a regulatory authority that has denied an application shall, to the extent practicable, inform the applicant of the reasons for denial of the application.

Article 11.14: Self-Regulatory Organisations

If a Party requires a financial institution or a cross-border financial service supplier of another Party to be a member of, participate in, or have access to, a self-regulatory organisation in order to provide a financial service in or into its territory, it shall ensure that the self-regulatory organisation observes the obligations contained in Article 11.3 (National Treatment) and Article 11.4 (Most Favoured-Nation Treatment).

Article 11.15: Payment and Clearing Systems

Under terms and conditions that accord national treatment, each Party shall grant financial institutions of another Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article is not intended to confer access to the Party's lender of last resort facilities.

Article 11.16: Expedited Availability of Insurance Services

The Parties recognise the importance of maintaining and developing regulatory procedures to expedite the offering of insurance services by licensed suppliers. These procedures may include: allowing introduction of products unless those products are disapproved within a reasonable period of time; not requiring product approval or authorisation of insurance lines for insurance other than insurance sold to individuals or compulsory insurance; or not imposing limitations on the number or frequency of product introductions. If a Party maintains regulatory product approval procedures, that Party shall endeavour to maintain or improve those procedures.

Article 11.17: Performance of Back-Office Functions

1. The Parties recognise that the performance of the back-office functions of a financial institution in its territory by the head office or an affiliate of the financial institution, or by an unrelated service supplier, either inside or outside its territory, is important to the effective management and efficient operation of that financial institution. While a Party may require financial institutions to ensure compliance with any domestic requirements applicable to those functions, they recognise the importance of avoiding the imposition of arbitrary requirements on the performance of those functions.

2. For greater certainty, nothing in paragraph 1 prevents a Party from requiring a financial institution in its territory to retain certain functions.

Article 11.18: Specific Commitments

Annex 11-B (Specific Commitments) sets out certain specific commitments by each Party.

Article 11.19: Committee on Financial Services

1. The Parties hereby establish a Committee on Financial Services (Committee). The principal representative of each Party shall be an official of the Party's authority responsible for financial services set out in Annex 11-D (Authorities Responsible for Financial Services).

2. The Committee shall:

(a) supervise the implementation of this Chapter and its further elaboration;

(b) consider issues regarding financial services that are referred to it by a Party; and

(c) participate in the dispute settlement procedures in accordance with Article 11.22 (Investment Disputes in Financial Services).

3. The Committee shall meet annually, or as it decides otherwise, to assess the functioning of this Agreement as it applies to financial services. The Committee shall inform the Commission of the results of any meeting.

Article 11.20: Consultations

1. A Party may request, in writing, consultations with another Party regarding any matter arising under this Agreement that affects financial services. The other Party shall give sympathetic consideration to the request to hold consultations. The consulting Parties shall report the results of their consultations to the Committee.

2. With regard to matters relating to existing non-conforming measures maintained by a Party at a regional level of government as referred to in Article 11.10.1(a)(ii) (Non-Conforming Measures):

(a) A Party may request information on any non-conforming measure at the regional level of government of another Party. Each Party shall establish a contact point to respond to those requests and to facilitate the exchange of information regarding the operation of measures covered by those requests.

(b) If a Party considers that a non-conforming measure applied by a regional level of government of another Party creates a material impediment to trade or investment by a financial institution, an investor, investments in a financial institution or a cross-border financial service supplier, the Party may request consultations with regard to that measure. These Parties shall enter into consultations with a view to exchanging information on the operation of the measure and to considering whether further steps are necessary and appropriate.

3. Consultations under this Article shall include officials of the authorities specified in Annex 11-D (Authorities Responsible for Financial Services).

4. For greater certainty, nothing in this Article shall be construed to require a Party to derogate from its law regarding sharing of information between financial regulators or the requirements of an agreement or arrangement between financial authorities of the Parties, or to require a regulatory authority to take any action that would interfere with specific regulatory, supervisory, administrative or enforcement matters.

Article 11.21: Dispute Settlement

1. Chapter 28 (Dispute Settlement) shall apply as modified by this Article to the settlement of disputes arising under this Chapter.

2. If a Party claims that a dispute arises under this Chapter, Article 28.9 (Composition of Panels) shall apply, except that:

(a) if the disputing Parties agree, each panellist shall meet the qualifications in paragraph 3; and

(b) in any other case:

(i) each disputing Party shall select panellists that meet the qualifications set out in either paragraph 3 or Article 28.10.1 (Qualifications of Panellists); and

(ii) if the responding Party invokes Article 11.11 (Exceptions), the chair of the panel shall meet the qualifications set out in paragraph 3, unless the disputing Parties otherwise agree.

3. In addition to the requirements set out in Article 28.10.1(b) to (d) (Qualifications of Panellists), panellists in disputes arising under this Chapter shall have expertise or experience in financial services law or practice, which may include the regulation of financial institutions.

4. A Party may request the establishment of a panel pursuant to Article 11.22.2(c) (Investment Disputes in Financial Services) to consider whether and to what extent Article 11.11 (Exceptions) is a valid defence to a claim without having to request consultations under Article 28.5 (Consultations). The panel shall endeavour to present its initial report pursuant to Article 28.17 (Initial Report) within 150 days after the last panellist is appointed.

5. If a Party seeks to suspend benefits in the financial services sector, a panel that reconvenes to make a determination on the proposed suspension of benefits, in accordance with Article 28.20.5 (Non-Implementation – Compensation and Suspension of Benefits), shall seek the views of financial services experts, as necessary.

Article 11.22: Investment Disputes in Financial Services

1. If an investor of a Party submits a claim to arbitration under Section B of Chapter 9 (Investment) challenging a measure relating to regulation or supervision of financial institutions, markets or instruments, the expertise or experience of any particular candidate with respect to financial services law or practice shall be taken into account in the appointment of arbitrators to the tribunal.

2. If an investor of a Party submits a claim to arbitration under Section B of Chapter 9 (Investment), and the respondent invokes Article 11.11 (Exceptions) as a defence, the following provisions of this Article shall apply.

(a) The respondent shall, no later than the date the tribunal fixes for the respondent to submit its counter-memorial, or in the case of an amendment to the notice of arbitration, the date the tribunal fixes for the respondent to submit its response to the amendment, submit in writing to the authorities responsible for financial services of the Party of the claimant, as set out in Annex 11-D (Authorities Responsible for Financial Services), a request for a joint determination by the authorities of the respondent and the Party of the claimant on the issue of whether and to what extent Article 11.11 (Exceptions) is a valid defence to the claim. The respondent shall promptly provide the tribunal, if constituted, and the non disputing Parties a copy of the request. The arbitration may proceed with respect to the claim only as provided in paragraph 4.

(b) The authorities of the respondent and the Party of the claimant shall attempt in good faith to make a determination as described in subparagraph (a). Any such determination shall be transmitted promptly to the disputing parties, the Committee and, if constituted, to the tribunal. The determination shall be binding on the tribunal and any decision or award issued by the tribunal must be consistent with that determination.

(c) If the authorities referred to in subparagraphs (a) and (b) have not made a determination within 120 days of the date of receipt of the respondent's written request for a determination under subparagraph (a), the respondent or the Party of the claimant may request the establishment of a panel under Chapter 28 (Dispute Settlement) to consider whether and to what extent Article 11.11 (Exceptions) is a valid defence to the claim. The panel established under Article 28.7 (Establishment of a Panel) shall be constituted in accordance with Article 11.21 (Dispute Settlement). Further to Article 28.18 (Final Report), the panel shall transmit its final report to the disputing Parties and to the tribunal.

3. The final report of a panel referred to in paragraph 2(c) shall be binding on the tribunal, and any decision or award issued by the tribunal must be consistent with the final report.

4. If no request for the establishment of a panel pursuant to paragraph 2(c) has been made within 10 days of the expiration of the 120 day period referred to in paragraph 2(c), the tribunal established under Article 9.19 (Submission of a Claim to Arbitration) may proceed with respect to the claim.

(a) The tribunal shall draw no inference regarding the application of Article 11.11 (Exceptions) from the fact that the authorities have not made a determination as described in paragraphs 2(a), (b) and (c).

(b) The Party of the claimant may make oral and written submissions to the tribunal regarding the issue of whether and to what extent Article 11.11 (Exceptions) is a valid defence to the claim. Unless it makes such a submission, the Party of the claimant shall be presumed, for the purposes of the arbitration, to take a position on Article 11.11 that is not inconsistent with that of the respondent.

5. For the purposes of this Article, the definitions of the following terms set out in Article 9.1 (Definitions) are incorporated, mutatis mutandis: "claimant", "disputing parties", "disputing party", "non-disputing Party" and "respondent".

ANNEX 11-A

CROSS-BORDER TRADE

Australia

Insurance and insurance-related services

1. Article 11.6.1 (Cross-Border Trade) shall apply to the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of "cross-border supply of financial services" in Article 11.1 (Definitions), with respect to:

(a) insurance of risks relating to:

(i) maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability arising therefrom; and

(ii) goods in international transit;

(b) reinsurance and retrocession;

(d) insurance intermediation, such as brokerage and agency, as referred to in subparagraph (c) of the definition of "financial service" in Article 11.1 (Definitions), of insurance of risks related to services listed in subparagraphs (a) and (b) of this paragraph.

Banking and other financial services (excluding insurance)

(a) provision and transfer of financial information, and financial data processing and related software relating to banking and other financial services, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions); and

(b) advisory and other auxiliary services, excluding intermediation, relating to banking and other financial services, as referred to in subparagraph (p) of the definition of "financial service" in Article 11.1 (Definitions).

Brunei Darussalam

Insurance and insurance-related services

(a) insurance of risks relating to:

(ii) goods in international transit;

(b) reinsurance and retrocession; and

Banking and other financial services (excluding insurance)

2. Article 11.6.1 (Cross-Border Trade) shall apply only with respect to: (a) provision and transfer of financial information; and

(b) provision and transfer of financial data processing and related software relating to banking and other financial services, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions).

Canada15

Insurance and insurance-related services

(a) insurance of risks relating to:

(i) maritime transport and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability deriving therefrom; and

(ii) goods in international transit;

(b) reinsurance and retrocession;

(c) services auxiliary to insurance, as described in subparagraph (d) of the definition of "financial service" in Article 11.1 (Definitions); and

Banking and other financial services (excluding insurance)

(a) provision and transfer of financial information, and financial data processing, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions); and

(b) advisory and other auxiliary financial services, and credit reference and analysis, excluding intermediation, relating to banking and other financial services, as referred to in subparagraph (p) of the definition of "financial service" in Article 11.1 (Definitions).

Chile

Insurance and insurance-related services

(a) insurance of risks relating to:

(i) international maritime shipping and international commercial aviation and space launching and freight　(including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability deriving there from; and

(ii) goods in international transit;

(b) brokerage of insurance of risks relating to subparagraphs (a)(i) and (a)(ii); and

Banking and other financial services (excluding insurance)

2. Article 11.6.1 (Cross-Border Trade) shall apply with respect to:

(a) provision and transfer of financial information, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions);

(b) financial data processing, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions), subject to prior authorisation from the relevant regulator, as required;16 and

(c) advisory and other auxiliary financial services, excluding intermediation and credit reference and analysis, relating to banking and other financial services, as referred to in subparagraph (p) of the definition of "financial service" in Article 11.1 (Definitions).

3. It is understood that a Party's commitments on cross-border investment advisory services shall not, in and of themselves, be construed to require the Party to permit the public offering of securities (as defined under its relevant law) in the territory of the Party by cross-border suppliers of the other Party who supply or seek to supply such investment advisory services. A Party may subject the cross border suppliers of investment advisory services to regulatory and registration requirements.

Japan

Insurance and insurance-related services

(a) insurance of risks relating to:

(ii) goods in international transit;

(b) reinsurance, retrocession, and services auxiliary to insurance as referred to in subparagraph (d) of the definition of "financial service" in Article 11.1 (Definitions); and

(c) insurance intermediation, such as brokerage and agency, as referred to in subparagraph (c) of the definition of "financial service" in Article 11.1 (Definitions), of insurance of risks related to services listed in subparagraphs (a) and (b) of this paragraph.17

Banking and other financial services (excluding insurance)

(a) securities-related transactions with financial institutions and other entities in Japan as prescribed by the relevant laws and regulations of Japan;

(b) sales of a beneficiary certificate of an investment trust and an investment security, through securities firms in Japan;18

(c) provision and transfer of financial information, and financial data processing and related software, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions); and

(d) advisory and other auxiliary services, excluding intermediation, relating to banking and other financial services, as referred to in subparagraph (p) of the definition of "financial service" in Article 11.1 (Definitions).

Malaysia

Insurance and insurance-related services

(a) insurance of risks relating to:

(ii) goods in international transit; and

(b) reinsurance and retrocession; services auxiliary to insurance comprising consultancy services, actuarial, risk assessment, risk management and maritime loss adjusting; and brokerage services for risks relating to subparagraph (a) of this paragraph.

Banking and other financial services (excluding insurance)

2. Article 11.6.1 (Cross-Border Trade) shall apply to the cross-border supply of or trade in financial services, as defined in subparagraph (a) of the definition of "cross-border supply of financial services" in Article 11.1 (Definitions), with respect to the provision and transfer of financial information and financial data processing and related software, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions).

3. The commitment made by Malaysia under paragraph 2 does not extend to the supply of electronic payment services for payment card transactions19.

Mexico

Insurance and insurance-related services

(a) insurance of risks relating to:

(ii) goods in international transit;

(b) reinsurance and retrocession;

(d) brokerage of insurance of risks relating to subparagraphs (a) and (b).

Banking and other financial services (excluding insurance)

2. Article 11.6.1 (Cross-Border Trade) shall apply only with respect to:

(a) provision and transfer of financial information, and financial data processing and related software, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions), subject to prior authorisation from the relevant regulator, as required; and

(b) advisory and other auxiliary financial services,21 excluding intermediation, and credit reference and analysis, relating to banking and other financial services as referred to in subparagraph (p) of the definition of "financial service" in Article 11.1 (Definitions).

New Zealand

Insurance and insurance-related services

(a) insurance of risks relating to:

(ii) goods in international transit;

(b) reinsurance and retrocession, as referred to in subparagraph (b) of the definition of "financial service" in Article 11.1 (Definitions);

(c) services auxiliary to insurance, as referred to in subparagraph (d) of the definition of "financial service" in Article 11.1 (Definitions); and

(d) insurance intermediation, such as brokerage and agency, as referred to in subparagraph (c) of the definition of "financial service" in Article 11.1 (Definitions), of insurance risks relating to services listed in subparagraphs (a) and (b) of this paragraph.

Banking and other financial services (excluding insurance)

(a) provision and transfer of financial information and financial data processing and related software, as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions); and

Peru

Insurance and insurance-related services

(a) insurance of risks related to:

(ii) goods in international transit;

(b) reinsurance and retrocession;

(d) insurance intermediation, such as brokerage and agency, as referred to in subparagraph (c) of the definition of "financial service" in Article 11.1 (Definitions), of insurance of risks relating to services listed in subparagraphs (a) and (b) in this paragraph.

Banking and other financial services (excluding insurance)

2. Article 11.6.1 (Cross-Border Trade) shall apply only with respect to the provision and transfer of financial information, and financial data processing and related software as referred to in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions)23, subject to prior authorisation from the relevant regulator, as required, and advisory and other auxiliary financial services, excluding intermediation, relating to banking and other financial services as referred to in subparagraph (p) of the definition of "financial service" in Article 11.1 (Definitions).

Singapore

Insurance and insurance-related services

(a) insurance of "MAT" risks relating to:

(ii) goods in international transit;

(b) reinsurance and retrocession;

(d) reinsurance intermediation by brokerages; and

(e) MAT intermediation by brokerages.

Banking and other financial services (excluding insurance)

(a) provision and transfer of financial information, as described in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions); and

(b) financial data processing and related software, as described in subparagraph (o) of the definition of "financial service" in Article 11.1 (Definitions), subject to prior authorisation from the relevant regulator, as required.

United States

Insurance and insurance-related services

(a) insurance of risks relating to:

(ii) goods in international transit; and

(b) reinsurance and retrocession; services auxiliary to insurance, as referred to in subparagraph (d) of the definition of "financial service" in Article 11.1 (Definitions); and insurance intermediation, such as brokerage and agency, as referred to in subparagraph (c) of the definition of "financial service" in Article 11.1 (Definitions).

2. Article 11.6.1 (Cross-Border Trade) shall apply to the cross-border supply of or trade in financial services, as defined in subparagraph (c) of the definition of "cross-border supply of financial services" in Article 11.1 (Definitions), with respect to insurance services.

Banking and other financial services (excluding insurance)

3. Article 11.6.1 shall apply only with respect to:

Viet Nam

Insurance and insurance-related services

(a) insurance of risks relating to:

(i) international maritime shipping and international commercial aviation with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability arising therefrom; and

(ii) goods in international transit;

(b) reinsurance and retrocession; and

(c) brokerage services, and services auxiliary to insurance, as referred to in subparagraph (d) of the definition of "financial service" in Article 11.1 (Definitions).

Banking and other financial services (excluding insurance)

ANNEX 11-B

SPECIFIC COMMITMENTS

Section A: Portfolio Management

1. A Party shall allow a financial institution organised in the territory of another Party to provide the following services to a collective investment scheme located in its territory:

(a) investment advice; and

(b) portfolio management services, excluding:

(i) trustee services; and

(ii) custodial services and execution services that are not related to managing a collective investment scheme.

2. Paragraph 1 is subject to Article 11.6.3 (Cross-Border Trade). 3. For the purposes of paragraph 1, collective investment scheme means:

(a) For Australia, a "managed investment scheme" as defined under section 9 of the Corporations Act 2001 (Cth), other than a managed investment scheme operated in contravention of subsection 601ED (5) of the Corporations Act 2001 (Cth), or an entity that:

(i) carries on a business of investment in securities, interests in land, or other investments; and

(ii) in the course of carrying on that business, invests funds subscribed, whether directly or indirectly, after an offer or invitation to the public (within the meaning of section 82 of the Corporations Act 2001 (Cth)) made on terms that the funds subscribed would be invested.

(b) For Brunei Darussalam:

(i) A "collective investment scheme", defined under Section 203, of the Securities Market Order, 2013 as any investment arrangements with respect to assets of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income.

(ii) The arrangements must be such that:

(A) the persons who are to participate (participants) do not have day-to-day control over the management of the property, whether or not they have the right to be consulted or to give directions;

(B) the arrangements must also have either or both of the following characteristics:

(1) the contributions of the participants and the profits or income out of which payments are to be made to them are pooled; and

(2) the property is managed as a whole, by or on behalf of the operator of the collective investment scheme; and

(iii) The condition referred to in subparagraph (ii)(B) is that the property belongs beneficially to, and is managed by or on behalf of, a company, the trustee of a trust or some other entity or arrangement having as its purpose the investment of its funds with the aim of spreading the investment risk and giving its members the benefit of the results of the management of those funds for or on behalf of that company, trust, entity or arrangement.

(d) For Chile, a "General Management Fund" (Administradora General de Fondos) as defined in Law 20.712 which is subject to supervision by the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros), excluding the provision of custodial services that are related to managing a collective investment scheme.

(e) For Japan, a "financial instruments business operator" engaged in investment management business under the Financial Instruments and Exchange Law (Law No. 25 of 1948).

(f) For Malaysia, any arrangement where:

(i) the investment is made for the purpose, or having the effect, of providing facilities for persons to participate in or receive profits or income arising from the acquisition, holding, management or disposal of securities, futures contracts or any other property (referred to as "scheme's assets") or sums paid out of such profits or income;

(ii) the persons who participate in the arrangements do not have day-to-day control over the management of the scheme's assets; and

(iii) the scheme's assets are managed by an entity that is responsible for the management of the scheme's assets and is approved, authorised or licensed by a relevant regulator to conduct fund management activities,

and includes, among others, unit trust funds, real estate investment trusts, exchange-traded funds, restricted investment schemes and closed-end funds.

(g) For Mexico, the "Managing Companies of Investment Funds" established under the Investment Funds Law (Ley de Fondos de Inversión). A financial institution organised in the territory of another Party will only be authorised to provide portfolio management services to a collective investment scheme located in Mexico if it provides the same services in the territory of the Party where it is established.

(h) For New Zealand, a "registered scheme" as defined under the Financial Markets Conduct Act 2013.

(i) For Peru:

(i) mutual funds for investments and securities, pursuant to Single Ordered Text approved by Supreme Decree Nº 093-2002-EF (Texto Único Ordenado de la Ley de Mercado de Valores aprobado mediante Decreto Supremo Nº 093-2002-EF); or

(ii) investment funds, pursuant to Legislative Decree Nº 862 (Decreto Legislativo Nº 862, Ley de Fondos de Inversión y sus Sociedades Administradoras).

(j) For Singapore, a "collective investment scheme" as defined under the Securities and Futures Act (Cap. 289), and includes the manager of the scheme, provided that the financial institution in paragraph 1 is authorised or regulated as a fund manager in the territory of the Party it is organised in and is not a trust company.

(k) For the United States, an investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940.31

(l) For Viet Nam, a fund management company established and operated under the Securities Law of Viet Nam, and subject to regulation and supervision by the State Securities Commission of Viet Nam, in case the services in paragraph 1 are provided to manage an investment fund which invests in the assets located outside Viet Nam.

Section B: Transfer of Information

Each Party shall allow a financial institution of another Party to transfer information in electronic or other form, into and out of its territory, for data processing if such processing is required in the institution's ordinary course of business. Nothing in this Section restricts the right of a Party to adopt or maintain measures to:

(a) protect personal data, personal privacy and the confidentiality of individual records and accounts; or

(b) require a financial institution to obtain prior authorisation from the relevant regulator to designate a particular enterprise as a recipient of such information, based on prudential considerations, provided that this right is not used as a means of avoiding the Party's commitments or obligations under this Section.

Section C: Supply of Insurance by Postal Insurance Entities

1. This Section sets out additional disciplines that apply if a Party allows its postal insurance entity to underwrite and supply direct insurance services to the general public. The services covered by this paragraph do not include the supply of insurance related to the collection, transport and delivery of letters or packages by a Party's postal insurance entity.

2. No Party shall adopt or maintain a measure that creates conditions of competition that are more favourable to a postal insurance entity with respect to the supply of insurance services described in paragraph 1 as compared to a private supplier of like insurance services in its market, including by:

(a) imposing more onerous conditions on a private supplier's licence to supply insurance services than the conditions the Party imposes on a postal insurance entity to supply like services; or

(b) making a distribution channel for the sale of insurance services available to a postal insurance entity under terms and conditions more favourable than those it applies to private suppliers of like services.

3. With respect to the supply of insurance services described in paragraph 1 by a postal insurance entity, a Party shall apply the same regulations and enforcement activities that it applies to the supply of like insurance services by private suppliers.

4. In implementing its obligations under paragraph 3, a Party shall require a postal insurance entity that supplies insurance services described in paragraph 1 to publish an annual financial statement with respect to the supply of those services. The statement shall provide the level of detail and meet the auditing standards required under the generally accepted accounting and auditing principles, or equivalent rules, applied in the Party's territory with respect to publicly traded private enterprises that supply like services.

5. If a panel under Chapter 28 (Dispute Settlement) finds that a Party is maintaining a measure that is inconsistent with any of the commitments in paragraphs 2, 3 and 4, the Party shall notify the complaining Party and provide an opportunity for consultations prior to allowing the postal insurance entity to:

(a) issue a new insurance product, or modify an existing product in a manner equivalent to the creation of a new product, in competition with like insurance products supplied by a private supplier in the Party's market; or

(b) increase any limitation on the value of insurance, either in total or with regard to any type of insurance product, that the entity may sell to a single policyholder.

6. This Section shall not apply to a postal insurance entity in the territory of a Party:

(a) that the Party neither owns nor controls, directly or indirectly, as long as the Party does not maintain any advantages that modify the conditions of competition in favour of the postal insurance entity in the supply of insurance services as compared to a private supplier of like insurance services in its market; or

(b) if sales of direct life and non-life insurance underwritten by the postal insurance entity each account for no more than 10 per cent, respectively, of total annual premium income from direct life and non-life insurance in the Party's market as of January 1, 2013.

7. If a postal insurance entity in the territory of a Party exceeds the percentage threshold referred to in paragraph 6(b) after the date of signature of this Agreement by the Party, the Party shall ensure that the postal insurance entity is:

(a) regulated and subject to enforcement by the same authorities that regulate and conduct enforcement activities with respect to the supply of insurance services by private suppliers; and

(b) subject to the financial reporting requirements that apply to financial institutions supplying insurance services.

8. For the purposes of this Section, postal insurance entity means an entity that underwrites and sells insurance to the general public and that is owned or controlled, directly or indirectly, by a postal entity of the Party.

Section D: Electronic Payment Card Services

1. A Party shall allow the supply of electronic payment services for payment card transactions into its territory from the territory of another Party by a person of that other Party. A Party may condition the cross-border supply of such electronic payment services on one or more of these requirements that a services supplier of another Party:

(a) register with or be authorised by relevant authorities;

(b) be a supplier who supplies such services in the territory of the other Party; or

provided that such requirements are not used as a means to avoid a Party's obligation under this Section.

2. For the purposes of this Section, electronic payment services for payment card transactions does not include the transfer of funds to and from transactors' accounts. Furthermore, electronic payment services for payment card transactions include only those payment network services that use proprietary networks to process payment transactions. These services are provided on a business to business basis.

3. Nothing in this Section shall be construed to prevent a Party from adopting or maintaining measures for public policy purposes, provided that these measures are not used as a means to avoid the Party's obligation under this Section. For greater certainty, such measures may include:

(a) measures to protect personal data, personal privacy and the confidentiality of individual records, transactions and accounts, such as restricting the collection by, or transfer to, the cross-border services supplier of another Party, of information concerning cardholder names;

(b) the regulation of fees, such as interchange or switching fees; and

(c) the imposition of fees as may be determined by a Party's authority, such as those to cover the costs associated with supervision or regulation or to facilitate the development of the Party's payment system infrastructure.

4. For the purposes of this Section, payment card means:

(a) For Australia, a credit card, charge card, debit card, cheque card, automated teller machine (ATM) card, prepaid card, and other physical or electronic products or services for performing a similar function as such cards, and the unique account number associated with that card, product or service.

(b) For Brunei Darussalam, in accordance with its laws and regulations, a payment instrument, whether in physical or electronic format, that enables a person to obtain money, goods or services, or to otherwise make payment, including credit card, charge card, debit card, cheque, automated teller machine (ATM) card, prepaid card or other instruments widely used for performing a similar function.

(c) For Canada, a "payment card" as defined under the Payment Card Networks Act as of January 1, 2015. For greater certainty, both the physical and electronic forms of credit and debit cards are included in the definition. For greater certainty, credit cards include pre-paid cards.

(d) For Chile, a credit card, a debit card and a prepaid card in physical form or electronic format, as defined under Chilean law.

(i) In respect of such payment cards, in lieu of the scope of the cross-border electronic payment services referred to in this commitment, only the following cross-border financial services may be supplied:

(A) receiving and sending messages among acquirers and issuers or their agents and representatives through electronic or informatic channels for: authorisation requests, authorisation responses (approvals or declines), stand-in authorisations, adjustments, refunds, returns, retrievals, charge backs and related administrative messages;

(B) calculation of fees and balances derived from transactions of acquirers and issuers by means of automated or computerised systems, and receiving and sending messages related to this process to acquirers and issuers, and their agents and representatives, provided that those calculations are subject to approval, recognition or confirmation bythe acquiring and issuing parties involved;

(C) the provision of periodic reconciliation, summaries and instructions regarding the net financial position of acquirers and issuers, and their agents and representatives for approved transactions; and

(D) value-added services related to the main processing activities in subparagraphs (d)(i)(A), (d)(i)(B) and (d)(i)(C), such as fraud prevention and mitigation activities, and administration of loyalty programmes. Such cross-border financial services may only be supplied by a service supplier of another Party into the territory of Chile pursuant to this commitment, provided that such services are supplied to entities that are regulated by Chile in connection with their participation in card payment networks and that are contractually responsible for such services.

(ii) Nothing in this commitment restricts the right of Chile to adopt or maintain measures, in addition to all other measures set forth in this Section, that condition the cross border supply of such electronic payment services into Chile by a service supplier of another Party on a contractual relationship between that supplier and an affiliate of the supplier established, authorised and regulated as a payments network participant under Chilean law in the territory of Chile, provided that such right is not used as a means of avoiding Chile's commitments or obligations under this Section.

(e) For Japan:

(i) a credit card and a prepaid card in physical or electronic form as defined under the laws and regulations of Japan; and

(ii) a debit card in physical or electronic form, provided that such a card is allowed within the framework of the laws and regulations of Japan.

(f) For Malaysia, a credit card, a debit card and a prepaid card as defined under Malaysian law.

(g) For Mexico, a credit card and a debit card in physical form or electronic format, as defined under Mexican law.

(i) In respect of such payment cards, in lieu of the scope of the cross-border electronic payment services set forth in paragraph 1, only the following cross-border services may be supplied:

(A) receiving and sending messages for: authorisation requests, authorisation responses (approvals or declines), stand-in authorisations, adjustments, refunds, returns, retrievals, charge backs and related administrative messages;

(B) calculation of fees and balances derived from transactions of acquirers and issuers, and receiving and sending messages related to this process to acquirers and issuers, and their agents and representatives;

(D) value-added services related to the main processing activities in subparagraphs (g)(i)(A), (g)(i)(B) and (g)(i)(C), such as fraud prevention and mitigation activities, and administration of loyalty programmes.

(ii) Such cross-border services may only be supplied by a service provider of another Party into the territory of Mexico pursuant to this commitment, provided that the services are supplied to entities that are regulated by Mexico in connection with their participation in card payment networks and that are responsible for such services.

(iii) Nothing in this commitment restricts the right of Mexico to adopt or maintain measures, in addition to all other measures set forth in this Section, that condition the cross border supply of such electronic payment services into Mexico by a service supplier of another Party on a contractual relationship between that supplier and an affiliate of the supplier established and authorised as a payments network participant under Mexican law in the territory of Mexico, provided that such right is not used as a means of avoiding Mexico's commitments or obligations under this Section.

(h) For New Zealand, a credit or debit card in physical or electronic form.

(i) For Peru:

(i) credit and debit cards as defined under Peruvian laws and regulations; and

(ii) prepaid cards, as defined under Peruvian laws and regulations, that are issued by financial institutions.

(j) For Singapore:

(i) a credit card as defined in the Banking Act (Cap. 19), a charge card as defined in the Banking Act and a stored value facility as defined in the Payment Systems (Oversight) Act (Cap. 222A); and

(ii) a debit card and an automated teller machine (ATM) card. For greater certainty, both the physical and electronic forms of the cards or facility as listed in subparagraphs (j)(i) and (j)(ii) above would be included as a payment card.

(k) For the United States, a credit card, charge card, debit card, cheque card, automated teller machine (ATM) card, prepaid card, and other physical or electronic products or services for performing a similar function as such cards, and the unique account number associated with that card, product or service.

(l) For Viet Nam, a credit card, debit card or prepaid card, in physical form or electronic format, as defined under the laws and regulations of Viet Nam for cards issued inside or outside the territory of Viet Nam using an international Issuer Identification Number or Bank Identification Number (international IIN or BIN).

(i) Viet Nam shall allow the issuance of such cards using international IIN or BIN subject to conditions that are no more restrictive than the conditions applied to the issuance of such cards not using international IIN or BIN.

(ii) For greater certainty, nothing in this commitment restricts the right of Viet Nam to adopt or maintain measures, in addition to the measures set out in this Section, that condition the cross-border supply of such electronic payment services into Viet Nam by a service supplier of another Party on the provision of information and data to the Government of Viet Nam, for public policy purposes, regarding transactions that the supplier processes, provided that such measures are not used as a means of avoiding Viet Nam's obligation under this Section.

Section E: Transparency Considerations

In developing a new regulation of general application to which this Chapter applies, a Party may consider, in a manner consistent with its laws and regulations, comments regarding how the proposed regulation may affect the operations of financial institutions, including financial institutions of the Party or other Parties. These comments may include:

(a) submissions to a Party by another Party regarding its regulatory measures that are related to the objectives of the proposed regulation; or

(b) submissions to a Party by interested persons, including other Parties or financial institutions of other Parties, with regard to the potential effects of the proposed regulation.

ANNEX 11-C

NON-CONFORMING MEASURES RATCHET MECHANISM

Notwithstanding Article 11.10.1(c) (Non-Conforming Measures), for Viet Nam for three years after the date of entry into force of this Agreement for it:

(a) Article 11.3 (National Treatment), Article 11.4 (Most-Favoured Nation Treatment), Article 11.5 (Market Access for Financial Institutions) and Article 11.9 (Senior Management and Boards of Directors) shall not apply to an amendment to any non-conforming measure referred to in Article 11.10.1(a) (Non-Conforming Measures) to the extent that the amendment does not decrease the conformity of the measure, as it existed at the time of entry into force of this Agreement for Viet Nam, with Article 11.3 (National Treatment), Article 11.4 (Most-Favoured-Nation Treatment), Article 11.5 (Market Access for Financial Institutions) and Article 11.9 (Senior Management and Boards of Directors);

(b) Viet Nam shall not withdraw a right or benefit from:

(i) a financial institution of another Party;

(ii) investors of another Party, and investments of such investors, in financial institutions in Viet Nam's territory; or

(iii) cross-border financial service suppliers of another Party, in reliance on which the investor or covered investment has taken any concrete action,36 through an amendment to any non conforming measure referred to in Article 11.10.1(a) (Non Conforming Measures) that decreases the conformity of the measure as it existed immediately before the amendment; and

(c) Viet Nam shall provide to the other Parties the details of any amendment to any non-conforming measure referred to in Article 11.10.1(a) (Non-Conforming Measures) that would decrease the conformity of the measure, as it existed immediately before the amendment, at least 90 days before making the amendment.

ANNEX 11-D

AUTHORITIES RESPONSIBLE FOR FINANCIAL SERVICES

The authorities for each Party responsible for financial services are:

(a) for Australia, the Treasury and the Department of Foreign Affairs and Trade;

(b) for Brunei Darussalam, the Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam);

(d) for Chile, the Ministry of Finance (Ministerio de Hacienda);

(e) for Japan, the Ministry of Foreign Affairs and the Financial Services Agency, or their successors;

(f) for Malaysia, Bank Negara Malaysia and the Securities Commission Malaysia;

(g) for Mexico, the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público);

(h) for New Zealand, the Ministry of Foreign Affairs and Trade, in coordination with financial services regulators;

(i) for Peru, the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), in coordination with financial regulators;

(j) for Singapore, the Monetary Authority of Singapore;

(k) for United States, the Department of the Treasury for purposes of Article 11.22 (Investment Disputes in Financial Services) and for all matters involving banking, securities, and financial services other than insurance, the Department of the Treasury, in cooperation with the Office of the U.S. Trade Representative, for insurance matters; and

(l) for Viet Nam, the State Bank of Viet Nam and the Ministry of Finance.

ANNEX 11-E

1. Brunei Darussalam, Chile, Mexico and Peru do not consent to the submission of a claim to arbitration under Section B of Chapter 9 (Investment) for a breach of Article 9.6 (Minimum Standard of Treatment), as incorporated into this Chapter, in relation to any act or fact that took place or any situation that ceased to exist before:

(a) the fifth anniversary of the date of entry into force of this Agreement for Brunei Darussalam, Chile and Peru, respectively; and

(b) the seventh anniversary of the date of entry into force of this Agreement for Mexico.

2. If an investor of a Party submits a claim to arbitration under Section B of Chapter 9 (Investment) that Brunei Darussalam, Chile, Mexico or Peru has breached Article 9.6 (Minimum Standard of Treatment), as incorporated into this Chapter, it may not recover for loss or damage that it incurred before:

(a) the fifth anniversary of the date of entry into force of this Agreement for Brunei Darussalam, Chile and Peru, respectively; and

(b) the seventh anniversary of the date of entry into force of this Agreement for Mexico.

CHAPTER 12

TEMPORARY ENTRY FOR BUSINESS PERSONS

Article 12.1: Definitions

For the purposes of this Chapter:

business person means:

(a) a natural person who has the nationality of a Party according to Annex 1-A (Party-Specific Definitions); or

(b) a permanent resident of a Party that, prior to the date of entry into force of this Agreement, has made a notification consistent with Article XXVIII(k)(ii)(2) of GATS that that Party accords substantially the same treatment to its permanent residents as it does to its nationals,

who is engaged in trade in goods, the supply of services or the conduct of investment activities;

immigration formality means a visa, permit, pass or other document or electronic authority granting temporary entry;

immigration measure means any measure affecting the entry and stay of foreign nationals; and

temporary entry means entry into the territory of a Party by a business person of another Party who does not intend to establish permanent residence.

Article 12.2: Scope

1. This Chapter shall apply to measures that affect the temporary entry of business persons of a Party into the territory of another Party.

2. This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of another Party, nor shall it apply to measures regarding citizenship, nationality, residence or employment on a permanent basis.

3. Nothing in this Agreement shall prevent a Party from applying measures to regulate the entry of natural persons of another Party into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that those measures are not applied in a manner as to nullify or impair the benefits accruing to any Party under this Chapter.

4. The sole fact that a Party requires business persons of another Party to obtain an immigration formality shall not be regarded as nullifying or impairing the benefits accruing to any Party under this Chapter.

Article 12.3: Application Procedures

1. As expeditiously as possible after receipt of a completed application for an immigration formality, each Party shall make a decision on the application and inform the applicant of the decision including, if approved, the period of stay and other conditions.

2. At the request of an applicant, a Party that has received a completed application for an immigration formality shall endeavour to promptly provide information concerning the status of the application.

3. Each Party shall ensure that fees charged by its competent authorities for the processing of an application for an immigration formality are reasonable, in that they do not unduly impair or delay trade in goods or services or conduct of investment activities under this Agreement.

Article 12.4: Grant of Temporary Entry

1. Each Party shall set out in Annex 12-A the commitments it makes with regard to temporary entry of business persons, which shall specify the conditions and limitations for entry and temporary stay, including length of stay, for each category of business persons specified by that Party.

2. A Party shall grant temporary entry or extension of temporary stay to business persons of another Party to the extent provided for in those commitments made pursuant to paragraph 1, provided that those business persons:

(a) follow the granting Party's prescribed application procedures for the relevant immigration formality; and

(b) meet all relevant eligibility requirements for temporary entry or extension of temporary stay.

3. The sole fact that a Party grants temporary entry to a business person of another Party pursuant to this Chapter shall not be construed to exempt that business person from meeting any applicable licensing or other requirements, including any mandatory codes of conduct, to practise a profession or otherwise engage in business activities.

4. A Party may refuse to issue an immigration formality to a business person of another Party if the temporary entry of that person might affect adversely:

(a) the settlement of any labour dispute that is in progress at the place or intended place of employment; or

(b) the employment of any natural person who is involved in such dispute.

5. When a Party refuses pursuant to paragraph 4 to issue an immigration formality, it shall inform the applicant accordingly.

Article 12.5: Business Travel

The Parties affirm their commitments to each other in the context of APEC to enhance the mobility of business persons, including through exploration and voluntary development of trusted traveller programmes, and their support for efforts to enhance the APEC Business Travel Card programme.

Article 12.6: Provision of Information

Further to Article 26.2 (Publication) and Article 26.5 (Provision of Information), each Party shall:

(a) promptly publish online if possible or otherwise make publicly available, information on:

(i) current requirements for temporary entry under this Chapter, including explanatory material and relevant forms and documents that will enable interested persons of the other Parties to become acquainted with those requirements; and

(ii) the typical timeframe within which an application for an immigration formality is processed; and

(b) establish or maintain appropriate mechanisms to respond to enquiries from interested persons regarding measures relating to temporary entry covered by this Chapter.

Article 12.7: Committee on Temporary Entry for Business Persons

1. The Parties hereby establish a Committee on Temporary Entry for Business Persons (Committee), composed of government representatives of each Party.

2. The Committee shall meet once every three years, unless otherwise agreed by the Parties, to:

(a) review the implementation and operation of this Chapter;

(b) consider opportunities for the Parties to further facilitate temporary entry of business persons, including through the development of activities undertaken pursuant to Article 12.8 (Cooperation); and

3. A Party may request discussions with one or more other Parties with a view to advancing the objectives set out in paragraph 2. Those discussions may take place at a time and location agreed by the Parties involved in those discussions.

Article 12.8: Cooperation

Recognising that the Parties can benefit from sharing their diverse experience in developing and applying procedures related to visa processing and border security, the Parties shall consider undertaking mutually agreed cooperation activities, subject to available resources, including by:

(a) providing advice on the development and implementation of electronic processing systems for visas;

(b) sharing experiences with regulations, and the implementation of programmes and technology related to:

(i) border security, including those related to the use of biometric technology, advanced passenger information systems, frequent passenger programmes and security in travel documents; and

(ii) the expediting of certain categories of applicants in order to reduce facility and workload constraints; and

(c) cooperating in multilateral fora to promote processing enhancements, such as those listed in subparagraphs (a) and (b).

Article 12.9: Relation to Other Chapters

1. Except for this Chapter, Chapter 1 (Initial Provisions and General Definitions), Chapter 27 (Administrative and Institutional Provisions), Chapter 28 (Dispute Settlement), Chapter 30 (Final Provisions), Article 26.2 (Publication) and Article 26.5 (Provision of Information), no provision of this Agreement shall impose any obligation on a Party regarding its immigration measures.

2. Nothing in this Chapter shall be construed to impose obligations or commitments with respect to other Chapters of this Agreement.

Article 12.10: Dispute Settlement

1. No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) regarding a refusal to grant temporary entry unless:

(a) the matter involves a pattern of practice; and

(b) the business persons affected have exhausted all available administrative remedies regarding the particular matter.

2. The remedies referred to in paragraph 1(b) shall be deemed to be exhausted if a final determination in the matter has not been issued by the other Party within a reasonable period of time after the date of the institution of proceedings for the remedy, including any proceedings for review or appeal, and the failure to issue such a determination is not attributable to delays caused by the business persons concerned.

AUSTRALIA'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Australia's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

BRUNEI DARUSSALAM'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Brunei Darussalam's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

CANADA'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

1. The following sets out Canada's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

2. Canada may adopt or maintain any measure that is not specifically prohibited in this schedule.

CHILE'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Chile's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry for business persons.

JAPAN'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

1. The following sets out Japan's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

2. Japan extends its commitments under this Annex to all Parties regardless of the categories offered by the other Parties.

3. For the purposes of this schedule, the term "CPC" means the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991).

MALAYSIA'S SCHEDULE OF COMMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Malaysia's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

MEXICO'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Mexico's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

NEW ZEALAND'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

1. The following sets out New Zealand's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

2. Notwithstanding the commitments set out above, New Zealand reserves the right to adopt or maintain any measure in cases of labour or management disputes, and also with respect to ships' crews.

3. With respect to audio-visual services, New Zealand immigration instructions stipulate a special procedure for the granting of visas to entertainers, performing artists and associated support personnel for work purposes. To be eligible for a work visa or work permit, such applicants must come within the policy guidelines agreed to between the Minister of Immigration, independent promoters, agents or producers and the relevant performing artists' unions.

PERU'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Peru's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

SINGAPORE'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

1. The following sets out Singapore's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry for business persons.

2. Notwithstanding the definition of "business person" in Article 12.1 (Definitions), Singapore's commitments shall not extend to the permanent residents of another Party.

VIET NAM'S SCHEDULE OF COMMITMENTS FOR TEMPORARY ENTRY FOR BUSINESS PERSONS

The following sets out Viet Nam's commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

CHAPTER 13

TELECOMMUNICATIONS

Article 13.1: Definitions

For the purposes of this Chapter:

commercial mobile services means public telecommunications services supplied through mobile wireless means;

cost-oriented means based on cost, and may include a reasonable profit, and may involve different cost methodologies for different facilities or services;

end-user means a final consumer of or subscriber to a public telecommunications service, including a service supplier other than a supplier of public telecommunications services;

enterprise means an enterprise as defined in Article 1.3 (General Definitions) and a branch of an enterprise;

essential facilities means facilities of a public telecommunications network or service that:

(a) are exclusively or predominantly provided by a single or limited number of suppliers; and

(b) cannot feasibly be economically or technically substituted in order to supply a service;

interconnection means linking with suppliers providing public telecommunications services in order to allow the users of one supplier to communicate with users of another supplier and to access services provided by another supplier;

international mobile roaming service means a commercial mobile service provided pursuant to a commercial agreement between suppliers of public telecommunications services that enables end-users to use their home mobile handset or other device for voice, data or messaging services while outside the territory in which the end-user's home public telecommunications network is located;

leased circuit means a telecommunications facility between two or more designated points that is set aside for the dedicated use of, or availability to, a user and supplied by a supplier of a fixed telecommunications service;

licence means any authorisation that a Party may require of a person, in accordance with its laws and regulations, in order for that person to offer a telecommunications service, including concessions, permits or registrations;

major supplier means a supplier of public telecommunications services that has the ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for public telecommunications services as a result of:

(a) control over essential facilities; or

(b) use of its position in the market;

network element means a facility or equipment used in supplying a fixed public telecommunications service, including features, functions and capabilities provided by means of that facility or equipment;

non-discriminatory means treatment no less favourable than that accorded to any other user of like public telecommunications services in like circumstances, including with respect to timeliness;

number portability means the ability of end-users of public telecommunications services to retain, at the same location, the same telephone numbers when switching between the same category of suppliers of public telecommunications services;

physical co-location means physical access to and control over space in order to install, maintain or repair equipment, at premises owned or controlled and used by a major supplier to provide public telecommunications services;

public telecommunications network means telecommunications infrastructure used to provide public telecommunications services between defined network termination points;

public telecommunications service means any telecommunications service that a Party requires, explicitly or in effect, to be offered to the public generally. These services may include telephone and data transmission typically involving transmission of customer-supplied information between two or more defined points without any end-to-end change in the form or content of the customer's information;

reference interconnection offer means an interconnection offer extended by a major supplier and filed with, approved by or determined by a telecommunications regulatory body that sufficiently details the terms, rates and conditions for interconnection so that a supplier of public telecommunications services that is willing to accept it may obtain interconnection with the major supplier on that basis, without having to engage in negotiations with the major supplier concerned;

telecommunications means the transmission and reception of signals by any electromagnetic means, including by photonic means;

telecommunications regulatory body means a body or bodies responsible for the regulation of telecommunications;

user means a service consumer or a service supplier; and

virtual co-location means an arrangement whereby a requesting supplier that seeks co-location may specify equipment to be used in the premises of a major supplier but does not obtain physical access to those premises and allows the major supplier to install, maintain and repair that equipment.

Article 13.2: Scope

1. This Chapter shall apply to:

(a) any measure relating to access to and use of public telecommunications services;

(b) any measure relating to obligations regarding suppliers of public telecommunications services; and

2. This Chapter shall not apply to any measure relating to broadcast or cable distribution of radio or television programming, except that:

(a) Article 13.4.1 (Access to and Use of Public Telecommunications Services) shall apply with respect to a cable or broadcast service supplier's access to and use of public telecommunications services; and

(b) Article 13.22 (Transparency) shall apply to any technical measure to the extent that the measure also affects public telecommunications services.

3. Nothing in this Chapter shall be construed to:

(a) require a Party, or require a Party to compel any enterprise, to establish, construct, acquire, lease, operate or provide a telecommunications network or service not offered to the public generally;

(b) require a Party to compel any enterprise exclusively engaged in the broadcast or cable distribution of radio or television programming to make available its broadcast or cable facilities as a public telecommunications network; or

(c) prevent a Party from prohibiting a person who operates a private network from using its private network to supply a public telecommunications network or service to third persons.

4. Annex 13-A (Rural Telephone Suppliers – United States) and Annex 13-B (Rural Telephone Suppliers – Peru) include additional provisions relating to the scope of this Chapter.

Article 13.3: Approaches to Regulation

1. The Parties recognise the value of competitive markets to deliver a wide choice in the supply of telecommunications services and to enhance consumer welfare, and that economic regulation may not be needed if there is effective competition or if a service is new to a market. Accordingly, the Parties recognise that regulatory needs and approaches differ market by market, and that each Party may determine how to implement its obligations under this Chapter.

2. In this respect, the Parties recognise that a Party may:

(a) engage in direct regulation either in anticipation of an issue that the Party expects may arise or to resolve an issue that has already arisen in the market;

(b) rely on the role of market forces, particularly with respect to market segments that are, or are likely to be, competitive or that have low barriers to entry, such as services provided by telecommunications suppliers that do not own network facilities;

3. When a Party engages in direct regulation, it may nonetheless forbear, to the extent provided for in its law, from applying that regulation to a service that the Party classifies as a public telecommunications service, if its telecommunications regulatory body or other competent body determines that:

(a) enforcement of the regulation is not necessary to prevent unreasonable or discriminatory practices;

(b) enforcement of the regulation is not necessary for the protection of consumers; and

(c) forbearance is consistent with the public interest, including promoting and enhancing competition between suppliers of public telecommunications services.

Article 13.4: Access to and Use of Public Telecommunications Services3

1. Each Party shall ensure that any enterprise of another Party has access to and use of any public telecommunications service, including leased circuits, offered in its territory or across its borders, on reasonable and non-discriminatory terms and conditions.

2. Each Party shall ensure that any service supplier of another Party is permitted to:

(a) purchase or lease, and attach terminal or other equipment that interfaces with a public telecommunications network;

(b) provide services to individual or multiple end-users over leased or owned circuits;

(c) connect leased or owned circuits with public telecommunications networks and services or with circuits leased or owned by another enterprise;

(d) perform switching, signalling, processing and conversion functions; and

(e) use operating protocols of their choice.

3. Each Party shall ensure that an enterprise of any Party may use public telecommunications services for the movement of information in its territory or across its borders, including for intra-corporate communications, and for access to information contained in databases or otherwise stored in machine-readable form in the territory of any Party.

4. Notwithstanding paragraph 3, a Party may take measures that are necessary to ensure the security and confidentiality of messages and to protect the privacy of personal data of end-users of public telecommunications networks or services, provided that those measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services.

5. Each Party shall ensure that no condition is imposed on access to and use of public telecommunications networks and services, other than as necessary to:

(a) safeguard the public service responsibilities of suppliers of public telecommunications networks and services, in particular their ability to make their networks or services generally available to the public; or

(b) protect the technical integrity of public telecommunications networks or services.

6. Provided that they satisfy the criteria set out in paragraph 5, conditions for access to and use of public telecommunications networks and services may include:

(a) a requirement to use a specified technical interface, including an interface protocol, for connection with those networks or services;

(b) a requirement, when necessary, for the interoperability of those networks and services;

(c) type approval of terminal or other equipment that interfaces with the network and technical requirements relating to the attachment of that equipment to those networks; and

(d) a licensing, permit, registration or notification procedure which, if adopted or maintained, is transparent and provides for the processing of applications filed thereunder in accordance with a Party's laws or regulations.

Article 13.5: Obligations Relating to Suppliers of Public

Telecommunications Services

Interconnection

1. Each Party shall ensure that suppliers of public telecommunications services in its territory provide, directly or indirectly within the same territory, interconnection with suppliers of public telecommunications services of another Party.

2. Each Party shall provide its telecommunications regulatory body with the authority to require interconnection at reasonable rates.

3. In carrying out paragraph 1, each Party shall ensure that suppliers of public telecommunications services in its territory take reasonable steps to protect the confidentiality of commercially sensitive information of, or relating to, suppliers and end-users of public telecommunications services obtained as a result of interconnection arrangements and that those suppliers only use that information for the purpose of providing these services.

Number Portability

4. Each Party shall ensure that suppliers of public telecommunications services in its territory provide number portability without impairment to quality and reliability, on a timely basis, and on reasonable and non-discriminatory terms and conditions.

Access to Numbers

5. Each Party shall ensure that suppliers of public telecommunications services of another Party established in its territory are afforded access to telephone numbers on a non-discriminatory basis.

Article 13.6: International Mobile Roaming

1. The Parties shall endeavour to cooperate on promoting transparent and reasonable rates for international mobile roaming services that can help promote the growth of trade among the Parties and enhance consumer welfare.

2. A Party may choose to take steps to enhance transparency and competition with respect to international mobile roaming rates and technological alternatives to roaming services, such as:

(a) ensuring that information regarding retail rates is easily accessible to consumers; and

(b) minimising impediments to the use of technological alternatives to roaming, whereby consumers when visiting the territory of a Party from the territory of another Party can access telecommunications services using the device of their choice.

3. The Parties recognise that a Party, when it has the authority to do so, may choose to adopt or maintain measures affecting rates for wholesale international roaming services with a view to ensuring that those rates are reasonable. If a Party considers it appropriate, it may cooperate on and implement mechanisms with other Parties to facilitate the implementation of those measures, including by entering into arrangements with those Parties.

4. If a Party (the first Party) chooses to regulate rates or conditions for wholesale international mobile roaming services, it shall ensure that a supplier of public telecommunications services of another Party (the second Party) has access to the regulated rates or conditions for wholesale international mobile roaming services for its customers roaming in the territory of the first Party in circumstances in which:

(a) the second Party has entered into an arrangement with the first Party to reciprocally regulate rates or conditions for wholesale international mobile roaming services for suppliers of the two Parties; or

(b) in the absence of an arrangement of the type referred to in subparagraph (a), the supplier of public telecommunications services of the second Party, of its own accord:

(i) makes available to suppliers of public telecommunications services of the first Party wholesale international mobile roaming services at rates or conditions that are reasonably comparable to the regulated rates or conditions; and

(ii) meets any additional requirements that the first Party imposes with respect to the availability of the regulated rates or conditions.

The first Party may require suppliers of the second Party to fully utilise commercial negotiations to reach agreement on the terms for accessing such rates or conditions.

5. A Party that ensures access to regulated rates or conditions for wholesale international mobile roaming services in accordance with paragraph 4 shall be deemed to be in compliance with its obligations under Article 10.4 (Most Favoured-Nation Treatment), Article 13.4.1 (Access to and Use of Public Telecommunications Services), and Article 13.7 (Treatment by Major Suppliers of Public Telecommunications Services) with respect to international mobile roaming services.

6. Each Party shall provide to the other Parties information on rates for retail international mobile roaming services for voice, data and text messages offered to consumers of the Party when visiting the territories of the other Parties. A Party shall provide that information no later than one year after the date of entry into force of this Agreement for the Party. Each Party shall update that information and provide it to the other Parties on an annual basis or as otherwise agreed. Interested Parties shall endeavour to cooperate on compiling this information into a report to be mutually agreed by the Parties and to be made publicly available.

7. Nothing in this Article shall require a Party to regulate rates or conditions for international mobile roaming services.

Article 13.7: Treatment by Major Suppliers of Public Telecommunications Services

Each Party shall ensure that a major supplier in its territory accords suppliers of public telecommunications services of another Party treatment no less favourable than that major supplier accords in like circumstances to its subsidiaries, its affiliates or non-affiliated service suppliers regarding:

(a) the availability, provisioning, rates or quality of like public telecommunications services; and

(b) the availability of technical interfaces necessary for interconnection.

Article 13.8: Competitive Safeguards

1. Each Party shall maintain appropriate measures for the purpose of preventing suppliers of public telecommunications services that, alone or together, are a major supplier in its territory from engaging in or continuing anti competitive practices.

2. The anti-competitive practices referred to in paragraph 1 include in particular:

(a) engaging in anti-competitive cross-subsidisation;

(b) using information obtained from competitors with anti-competitive results; and

(c) not making available, on a timely basis, to suppliers of public telecommunications services, technical information about essential facilities and commercially relevant information that are necessary for them to provide services.

Article 13.9: Resale

1. No Party shall prohibit the resale of any public telecommunications service.

2. Each Party shall ensure that a major supplier in its territory:

(a) offers for resale, at reasonable rates, to suppliers of public telecommunications services of another Party, public telecommunications services that the major supplier provides at retail to end-users; and

(b) does not impose unreasonable or discriminatory conditions or limitations on the resale of those services.

3. Each Party may determine, in accordance with its laws and regulations, which public telecommunications services must be offered for resale by major suppliers pursuant to paragraph 2, based on the need to promote competition or to benefit the long-term interests of end-users.

4. If a Party does not require that a major supplier offer a specific public telecommunications service for resale, it nonetheless shall allow service suppliers to request that the service be offered for resale consistent with paragraph 2, without prejudice to the Party's decision on the request.

Article 13.10: Unbundling of Network Elements by Major Suppliers

Each Party shall provide its telecommunications regulatory body or another appropriate body with the authority to require a major supplier in its territory to offer to public telecommunications service suppliers access to network elements on an unbundled basis on terms and conditions, and at cost-oriented rates, that are reasonable, non-discriminatory and transparent for the supply of public telecommunications services. Each Party may determine the network elements required to be made available in its territory, and the suppliers that may obtain those elements, in accordance with its laws and regulations.

Article 13.11: Interconnection with Major Suppliers

General Terms and Conditions

1. Each Party shall ensure that a major supplier in its territory provides interconnection for the facilities and equipment of suppliers of public telecommunications services of another Party:

(a) at any technically feasible point in the major supplier's network;

(b) under non-discriminatory terms, conditions (including technical standards and specifications) and rates;

(c) of a quality no less favourable than that provided by the major supplier for its own like services, for like services of non-affiliated service suppliers, or for its subsidiaries or other affiliates;

(d) in a timely manner, on terms and conditions (including technical standards and specifications), and at cost-oriented rates, that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled so that the suppliers do not have to pay for network components or facilities that they do not require for the service to be provided; and

(e) on request, at points in addition to the network termination points offered to the majority of users, subject to charges that reflect the cost of construction of necessary additional facilities.

Options for Interconnecting with Major Suppliers

2. Each Party shall ensure that a major supplier in its territory provides suppliers of public telecommunications services of another Party with the opportunity to interconnect their facilities and equipment with those of the major supplier through the following options:

(a) a reference interconnection offer or another standard interconnection offer containing the rates, terms and conditions that the major supplier offers generally to suppliers of public telecommunications services; or

(b) the terms and conditions of an interconnection agreement that is in effect.

3. In addition to the options provided in paragraph 2, each Party shall ensure that suppliers of public telecommunications services of another Party have the opportunity to interconnect their facilities and equipment with those of the major supplier through the negotiation of a new interconnection agreement.

Public Availability of Interconnection Offers and Agreements

4. Each Party shall make publicly available the applicable procedures for interconnection negotiations with a major supplier in its territory.

5. Each Party shall provide means for suppliers of another Party to obtain the rates, terms and conditions necessary for interconnection offered by a major supplier. Those means include, at a minimum, ensuring:

(a) the public availability of interconnection agreements that are in effect between a major supplier in its territory and other suppliers of public telecommunications services in its territory;

(b) the public availability of rates, terms and conditions for interconnection with a major supplier set by the telecommunications regulatory body or other competent body; or

Services for which those rates, terms and conditions are made publicly available do not have to include all interconnection-related services offered by a major supplier, as determined by a Party under its laws and regulations.

Article 13.12: Provisioning and Pricing of Leased Circuits Services by Major Suppliers

1. Each Party shall ensure that a major supplier in its territory provides to service suppliers of another Party leased circuits services that are public telecommunications services in a reasonable period of time on terms and conditions, and at rates, that are reasonable and non-discriminatory, and based on a generally available offer.

2. Further to paragraph 1, each Party shall provide its telecommunications regulatory body or other appropriate bodies the authority to require a major supplier in its territory to offer leased circuits services that are public telecommunications services to service suppliers of another Party at capacity based and cost-oriented prices.

Article 13.13: Co-Location by Major Suppliers

1. Subject to paragraphs 2 and 3, each Party shall ensure that a major supplier in its territory provides to suppliers of public telecommunications services of another Party in the Party's territory physical co-location of equipment necessary for interconnection or access to unbundled network elements based on a generally available offer, on a timely basis, and on terms and conditions and at cost-oriented rates, that are reasonable and non-discriminatory.

2. Where physical co-location is not practical for technical reasons or because of space limitations, each Party shall ensure that a major supplier in its territory provides an alternative solution, such as facilitating virtual co-location, based on a generally available offer, on a timely basis, and on terms and conditions and at cost-oriented rates, that are reasonable and non-discriminatory.

3. A Party may determine, in accordance with its laws and regulations, which premises owned or controlled by major suppliers in its territory are subject to paragraphs 1 and 2. When the Party makes this determination, it shall take into account factors such as the state of competition in the market where co-location is required, whether those premises can be substituted in an economically or technically feasible manner in order to provide a competing service, or other specified public interest factors.

4. If a Party does not require that a major supplier offer co-location at certain premises, it nonetheless shall allow service suppliers to request that those premises be offered for co-location consistent with paragraph 1, without prejudice to the Party's decision on such a request.

Article 13.14: Access to Poles, Ducts, Conduits and Rights-of-way Owned or Controlled by Major Suppliers

1. Each Party shall ensure that a major supplier in its territory provides access to poles, ducts, conduits, and rights-of-way or any other structures as determined by the Party, owned or controlled by the major supplier, to suppliers of public telecommunications services of another Party in the Party's territory on a timely basis, on terms and conditions and at rates, that are reasonable, non discriminatory and transparent, subject to technical feasibility.

2. A Party may determine, in accordance with its laws and regulations, the poles, ducts, conduits, rights-of-way or any other structures to which it requires major suppliers in its territory to provide access in accordance with paragraph 1. When the Party makes this determination, it shall take into account factors such as the competitive effect of lack of such access, whether such structures can be substituted in an economically or technically feasible manner in order to provide a competing service, or other specified public interest factors.

Article 13.15: International Submarine Cable Systems

Each Party shall ensure that any major supplier who controls international submarine cable landing stations in the Party's territory provides access to those landing stations, consistent with the provisions of Article 13.11 (Interconnection with Major Suppliers), Article 13.12 (Provisioning and Pricing of Leased Circuits Services by Major Suppliers) and Article 13.13 (Co-Location by Major Suppliers), to public telecommunications suppliers of another Party.

Article 13.16: Independent Regulatory Bodies and Government Ownership

1. Each Party shall ensure that its telecommunications regulatory body is separate from, and not accountable to, any supplier of public telecommunications services. With a view to ensuring the independence and impartiality of telecommunications regulatory bodies, each Party shall ensure that its telecommunications regulatory body does not hold a financial interest or maintain an operating or management role in any supplier of public telecommunications services.

2. Each Party shall ensure that the regulatory decisions and procedures of its telecommunications regulatory body or other competent authority related to provisions contained in this Chapter are impartial with respect to all market participants.

3. No Party shall accord more favourable treatment to a supplier of telecommunications services in its territory than that accorded to a like service supplier of another Party on the basis that the supplier receiving more favourable treatment is owned by the national government of the Party.

Article 13.17: Universal Service

Each Party has the right to define the kind of universal service obligation it wishes to maintain. Each Party shall administer any universal service obligation that it maintains in a transparent, non-discriminatory and competitively neutral manner, and shall ensure that its universal service obligation is not more burdensome than necessary for the kind of universal service that it has defined.

Article 13.18: Licensing Process

1. If a Party requires a supplier of public telecommunications services to have a licence, the Party shall ensure the public availability of:

(a) all the licensing criteria and procedures that it applies;

(b) the period that it normally requires to reach a decision concerning an application for a licence; and

2. Each Party shall ensure that, on request, an applicant receives the reasons for the:

(a) denial of a licence;

(b) imposition of supplier-specific conditions on a licence;

(d) refusal to renew a licence.

Article 13.19: Allocation and Use of Scarce Resources

1. Each Party shall administer its procedures for the allocation and use of scarce telecommunications resources, including frequencies, numbers and rights of-way, in an objective, timely, transparent and non-discriminatory manner.

2. Each Party shall make publicly available the current state of frequency bands allocated and assigned to specific suppliers but retains the right not to provide detailed identification of frequencies that are allocated or assigned for specific government uses.

3. For greater certainty, a Party's measures allocating and assigning spectrum and managing frequency are not per se inconsistent with Article 10.5 (Market Access) either as it applies to cross-border trade in services or through the operation of Article 10.2.2 (Scope) to an investor or covered investment of another Party. Accordingly, each Party retains the right to establish and apply spectrum and frequency management policies that may have the effect of limiting the number of suppliers of public telecommunications services, provided that the Party does so in a manner that is consistent with other provisions of this Agreement. This includes the ability to allocate frequency bands, taking into account current and future needs and spectrum availability.

4. When making a spectrum allocation for commercial telecommunications services, each Party shall endeavour to rely on an open and transparent process that considers the public interest, including the promotion of competition. Each Party shall endeavour to rely generally on market-based approaches in assigning spectrum for terrestrial commercial telecommunications services. To this end, each Party shall have the authority to use mechanisms such as auctions, if appropriate, to assign spectrum for commercial use.

Article 13.20: Enforcement

Each Party shall provide its competent authority with the authority to enforce the Party's measures relating to the obligations set out in Article 13.4 (Access to and Use of Public Telecommunications Services), Article 13.5 (Obligations Relating to Suppliers of Public Telecommunications Services), Article 13.7 (Treatment by Major Suppliers of Public Telecommunications Services), Article 13.8 (Competitive Safeguards), Article 13.9 (Resale), Article 13.10 (Unbundling of Network Elements by Major Suppliers), Article 13.11 (Interconnection with Major Suppliers), Article 13.12 (Provisioning and Pricing of Leased Circuits Services by Major Suppliers), Article 13.13 (Co-Location by Major Suppliers), Article 13.14 (Access to Poles, Ducts, Conduits and Rights-of way Owned or Controlled by Major Suppliers) and Article 13.15 (International Submarine Cable Systems). That authority shall include the ability to impose effective sanctions, which may include financial penalties, injunctive relief (on an interim or final basis), or the modification, suspension or revocation of licences.

Article 13.21: Resolution of Telecommunications Disputes

1. Further to Article 26.3 (Administrative Proceedings) and Article 26.4 (Review and Appeal), each Party shall ensure that:

Recourse

(a) enterprises have recourse to a telecommunications regulatory body or other relevant body of the Party to resolve disputes regarding the Party's measures relating to matters set out in Article 13.4 (Access to and Use of Public Telecommunications Services), Article 13.5 (Obligations Relating to Suppliers of Public Telecommunications Services), Article 13.6 (International Mobile Roaming), Article 13.7 (Treatment by Major Suppliers of Public Telecommunications Services), Article 13.8 (Competitive Safeguards), Article 13.9 (Resale), Article 13.10 (Unbundling of Network Elements by Major Suppliers), Article 13.11 (Interconnection with Major Suppliers), Article 13.12 (Provisioning and Pricing of Leased Circuits Services by Major Suppliers), Article 13.13 (Co-Location by Major Suppliers), Article 13.14 (Access to Poles, Ducts, Conduits and Rights-of-way Owned or Controlled by Major Suppliers) and Article 13.15 (International Submarine Cable Systems);

(b) if a telecommunications regulatory body declines to initiate any action on a request to resolve a dispute, it shall, upon request, provide a written explanation for its decision within a reasonable period of time;

(c) suppliers of public telecommunications services of another Party that have requested interconnection with a major supplier in the Party's territory may seek review, within a reasonable and publicly specified period of time after the supplier requests interconnection, by its telecommunications regulatory body to resolve disputes regarding the terms, conditions and rates for interconnection with that major supplier; and

Reconsideration

(d) any enterprise whose legally protected interests are adversely affected by a determination or decision of the Party's telecommunications regulatory body may appeal to or petition the body or other relevant body to reconsider that determination or decision. No Party shall permit the making of an application for reconsideration to constitute grounds for non-compliance with the determination or decision of the telecommunications regulatory body, unless the regulatory or other relevant body issues an order that the determination or decision not be enforced while the proceeding is pending. A Party may limit the circumstances under which reconsideration is available, in accordance with its laws and regulations.

Judicial Review

2. No Party shall permit the making of an application for judicial review to constitute grounds for non-compliance with the determination or decision of the telecommunications regulatory body, unless the judicial body issues an order that the determination or decision not be enforced while the proceeding is pending.

Article 13.22: Transparency

1. Further to Article 26.2.2 (Publication), each Party shall ensure that when its telecommunications regulatory body seeks input for a proposal for a regulation, that body shall:

(a) make the proposal public or otherwise available to any interested persons;

(b) include an explanation of the purpose of and reasons for the proposal;

(c) provide interested persons with adequate public notice of the ability to comment and reasonable opportunity for such comment;

(d) to the extent practicable, make publicly available all relevant comments filed with it; and

(e) respond to all significant and relevant issues raised in comments filed, in the course of issuance of the final regulation.

2. Further to Article 26.2.1 (Publication), each Party shall ensure that its measures relating to public telecommunications services are made publicly available, including:

(a) tariffs and other terms and conditions of service;

(b) specifications of technical interfaces;

(d) licensing, permit, registration or notification requirements, if any;

(e) general procedures relating to resolution of telecommunications disputes provided for in Article 13.21 (Resolution of Telecommunications Disputes); and

(f) any measures of the telecommunications regulatory body if the government delegates to other bodies the responsibility for preparing, amending and adopting standards-related measures affecting access and use.

Article 13.23: Flexibility in the Choice of Technology

1. No Party shall prevent suppliers of public telecommunications services from choosing the technologies they wish to use to supply their services, subject to requirements necessary to satisfy legitimate public policy interests, provided that any measure restricting that choice is not prepared, adopted or applied in a manner that creates unnecessary obstacles to trade. For greater certainty, a Party adopting those measures shall do so consistent with Article 13.22 (Transparency).

2. When a Party finances the development of advanced networks25, it may make its financing conditional on the use of technologies that meet its specific public policy interests.

Article 13.24: Relation to Other Chapters

In the event of any inconsistency between this Chapter and another Chapter of this Agreement, this Chapter shall prevail to the extent of the inconsistency.

Article 13.25: Relation to International Organisations

The Parties recognise the importance of international standards for global compatibility and interoperability of telecommunications networks and services and undertake to promote those standards through the work of relevant international organisations.

Article 13.26: Committee on Telecommunications

1. The Parties hereby establish a Committee on Telecommunications (Committee) composed of government representatives of each Party.

2. The Committee shall:

(a) review and monitor the implementation and operation of this Chapter, with a view to ensuring the effective implementation of the Chapter by enabling responsiveness to technological and regulatory developments in telecommunications to ensure the continuing relevance of this Chapter to Parties, service suppliers and end users;

(b) discuss any issues related to this Chapter and any other issues relevant to the telecommunications sector as may be decided by the Parties;

(d) carry out other functions delegated to it by the Commission.

3. The Committee shall meet at such venues and times as the Parties may decide.

4. The Parties may decide to invite representatives of relevant entities other than the Parties, including representatives of private sector entities, having the necessary expertise relevant to the issues to be discussed, to attend meetings of the Committee.

ANNEX 13-A

RURAL TELEPHONE SUPPLIERS – UNITED STATES

The United States may exempt rural local exchange carriers and rural telephone companies, as defined, respectively, in sections 251(f)(2) and 3(37) of the Communications Act of 1934, as amended, (47 U.S.C. 251(f)(2) and 153(44)), from the obligations contained in Article 13.5.4 (Obligations Relating to Suppliers of Public Telecommunications Services – Number Portability), Article 13.9 (Resale), Article 13.10 (Unbundling of Network Elements by Major Suppliers), Article 13.11 (Interconnection with Major Suppliers) and Article 13.13 (Co

Location by Major Suppliers).

ANNEX 13-B

RURAL TELEPHONE SUPPLIERS – PERU

1. With respect to Peru:

(a) a rural operator shall not be considered a major supplier;

(b) Article 13.5.4 (Obligations Relating to Suppliers of Public Telecommunications Services – Number Portability) shall not apply to rural operators; and

(c) Article 13.12 (Provisioning and Pricing of Leased Circuits Services by Major Suppliers), Article 13.13 (Co-Location by Major Suppliers) and Article 13.14 (Access to Poles, Ducts, Conduits, and Rights-of-way Owned or Controlled by Major Suppliers) shall not apply to the facilities deployed by major suppliers in rural areas.

2. For the purposes of this Annex, for Peru:

(a) rural area means a population centre:

(i) that is not included within urban areas, with a population of less than 3,000 inhabitants, a low population density and a lack of basic services; or

(ii) with a teledensity rate of less than two fixed lines per 100 inhabitants; and

(b) rural operator means a rural telephone company that has at least 80 per cent of its total fixed subscriber lines in operation in rural areas.

CHAPTER 14

ELECTRONIC COMMERCE

Article 14.1: Definitions

For the purposes of this Chapter:

computing facilities means computer servers and storage devices for processing or storing information for commercial use;

covered person1means:

(a) a covered investment as defined in Article 9.1 (Definitions);

(b) an investor of a Party as defined in Article 9.1 (Definitions), but does not include an investor in a financial institution; or

(c) a service supplier of a Party as defined in Article 10.1 (Definitions), but does not include a "financial institution" or a "cross-border financial service supplier of a Party" as defined in Article 11.1 (Definitions);

digital product means a computer programme, text, video, image, sound recording or other product that is digitally encoded, produced for commercial sale or distribution, and that can be transmitted electronically;

electronic authentication means the process or act of verifying the identity of a party to an electronic communication or transaction and ensuring the integrity of an electronic communication;

electronic transmission or transmitted electronically means a transmission made using any electromagnetic means, including by photonic means;

personal information means any information, including data, about an identified or identifiable natural person;

trade administration documents means forms issued or controlled by a Party that must be completed by or for an importer or exporter in connection with the import or export of goods; and

unsolicited commercial electronic message means an electronic message which is sent for commercial or marketing purposes to an electronic address, without the consent of the recipient or despite the explicit rejection of the recipient, through an Internet access service supplier or, to the extent provided for under the laws and regulations of each Party, other telecommunications service.

Article 14.2: Scope and General Provisions

1. The Parties recognise the economic growth and opportunities provided by electronic commerce and the importance of frameworks that promote consumer confidence in electronic commerce and of avoiding unnecessary barriers to its use and development.

2. This Chapter shall apply to measures adopted or maintained by a Party that affect trade by electronic means.

3. This Chapter shall not apply to:

(a) government procurement; or

(b) information held or processed by or on behalf of a Party, or measures related to such information, including measures related to its collection.

4. For greater certainty, measures affecting the supply of a service delivered or performed electronically are subject to the obligations contained in the relevant provisions of Chapter 9 (Investment), Chapter 10 (Cross-Border Trade in Services) and Chapter 11 (Financial Services), including any exceptions or non

conforming measures set out in this Agreement that are applicable to those obligations.

5. For greater certainty, the obligations contained in Article 14.4 (Non Discriminatory Treatment of Digital Products), Article 14.11 (Cross-Border Transfer of Information by Electronic Means), Article 14.13 (Location of Computing Facilities) and Article 14.17 (Source Code) are:

(a) subject to the relevant provisions, exceptions and non-conforming measures of Chapter 9 (Investment), Chapter 10 (Cross-Border Trade in Services) and Chapter 11 (Financial Services); and

(b) to be read in conjunction with any other relevant provisions in this Agreement.

6. The obligations contained in Article 14.4 (Non-Discriminatory Treatment of Digital Products), Article 14.11 (Cross-Border Transfer of Information by Electronic Means) and Article 14.13 (Location of Computing Facilities) shall not apply to the non-conforming aspects of measures adopted or maintained in accordance with Article 9.12 (Non-Conforming Measures), Article 10.7 (Non Conforming Measures) or Article 11.10 (Non-Conforming Measures).

Article 14.3: Customs Duties

1. No Party shall impose customs duties on electronic transmissions, including content transmitted electronically, between a person of one Party and a person of another Party.

2. For greater certainty, paragraph 1 shall not preclude a Party from imposing internal taxes, fees or other charges on content transmitted electronically, provided that such taxes, fees or charges are imposed in a manner consistent with this Agreement.

Article 14.4: Non-Discriminatory Treatment of Digital Products

1. No Party shall accord less favourable treatment to digital products created, produced, published, contracted for, commissioned or first made available on commercial terms in the territory of another Party, or to digital products of which the author, performer, producer, developer or owner is a person of another Party, than it accords to other like digital products.4

2. Paragraph 1 shall not apply to the extent of any inconsistency with the rights and obligations in Chapter 18 (Intellectual Property).

3. The Parties understand that this Article does not apply to subsidies or grants provided by a Party, including government-supported loans, guarantees and insurance.

4. This Article shall not apply to broadcasting.

Article 14.5: Domestic Electronic Transactions Framework

1. Each Party shall maintain a legal framework governing electronic transactions consistent with the principles of the UNCITRAL Model Law on Electronic Commerce 1996 or the United Nations Convention on the Use of Electronic Communications in International Contracts, done at New York, November 23, 2005.

2. Each Party shall endeavour to:

(a) avoid any unnecessary regulatory burden on electronic transactions; and

(b) facilitate input by interested persons in the development of its legal framework for electronic transactions.

Article 14.6: Electronic Authentication and Electronic Signatures

1. Except in circumstances otherwise provided for under its law, a Party shall not deny the legal validity of a signature solely on the basis that the signature is in electronic form.

2. No Party shall adopt or maintain measures for electronic authentication that would:

(a) prohibit parties to an electronic transaction from mutually determining the appropriate authentication methods for that transaction; or

(b) prevent parties to an electronic transaction from having the opportunity to establish before judicial or administrative authorities that their transaction complies with any legal requirements with respect to authentication.

3. Notwithstanding paragraph 2, a Party may require that, for a particular category of transactions, the method of authentication meets certain performance standards or is certified by an authority accredited in accordance with its law.

4. The Parties shall encourage the use of interoperable electronic authentication.

Article 14.7: Online Consumer Protection

1. The Parties recognise the importance of adopting and maintaining transparent and effective measures to protect consumers from fraudulent and deceptive commercial activities as referred to in Article 16.6.2 (Consumer Protection) when they engage in electronic commerce.

2. Each Party shall adopt or maintain consumer protection laws to proscribe fraudulent and deceptive commercial activities that cause harm or potential harm to consumers engaged in online commercial activities.

3. The Parties recognise the importance of cooperation between their respective national consumer protection agencies or other relevant bodies on activities related to cross-border electronic commerce in order to enhance consumer welfare. To this end, the Parties affirm that the cooperation sought under Article 16.6.5 and Article 16.6.6 (Consumer Protection) includes cooperation with respect to online commercial activities.

Article 14.8: Personal Information Protection5

1. The Parties recognise the economic and social benefits of protecting the personal information of users of electronic commerce and the contribution that this makes to enhancing consumer confidence in electronic commerce.

2. To this end, each Party shall adopt or maintain a legal framework that provides for the protection of the personal information of the users of electronic commerce. In the development of its legal framework for the protection of personal information, each Party should take into account principles and guidelines of relevant international bodies.

3. Each Party shall endeavour to adopt non-discriminatory practices in protecting users of electronic commerce from personal information protection violations occurring within its jurisdiction.

4. Each Party should publish information on the personal information protections it provides to users of electronic commerce, including how:

(a) individuals can pursue remedies; and

(b) business can comply with any legal requirements.

5. Recognising that the Parties may take different legal approaches to protecting personal information, each Party should encourage the development of mechanisms to promote compatibility between these different regimes. These mechanisms may include the recognition of regulatory outcomes, whether accorded autonomously or by mutual arrangement, or broader international frameworks. To this end, the Parties shall endeavour to exchange information on any such mechanisms applied in their jurisdictions and explore ways to extend these or other suitable arrangements to promote compatibility between them.

Article 14.9: Paperless Trading

Each Party shall endeavour to:

(a) make trade administration documents available to the public in electronic form; and

(b) accept trade administration documents submitted electronically as the legal equivalent of the paper version of those documents.

Article 14.10: Principles on Access to and Use of the Internet for Electronic Commerce

Subject to applicable policies, laws and regulations, the Parties recognise the benefits of consumers in their territories having the ability to:

(a) access and use services and applications of a consumer's choice available on the Internet, subject to reasonable network management;7

(b) connect the end-user devices of a consumer's choice to the Internet, provided that such devices do not harm the network; and

Article 14.11: Cross-Border Transfer of Information by Electronic Means

1. The Parties recognise that each Party may have its own regulatory requirements concerning the transfer of information by electronic means.

2. Each Party shall allow the cross-border transfer of information by electronic means, including personal information, when this activity is for the conduct of the business of a covered person.

3. Nothing in this Article shall prevent a Party from adopting or maintaining measures inconsistent with paragraph 2 to achieve a legitimate public policy objective, provided that the measure:

(a) is not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade; and

(b) does not impose restrictions on transfers of information greater than are required to achieve the objective.

Article 14.12: Internet Interconnection Charge Sharing

The Parties recognise that a supplier seeking international Internet connection should be able to negotiate with suppliers of another Party on a commercial basis. These negotiations may include negotiations regarding compensation for the establishment, operation and maintenance of facilities of the respective suppliers.

Article 14.13: Location of Computing Facilities

1. The Parties recognise that each Party may have its own regulatory requirements regarding the use of computing facilities, including requirements that seek to ensure the security and confidentiality of communications.

2. No Party shall require a covered person to use or locate computing facilities in that Party's territory as a condition for conducting business in that territory.

3. Nothing in this Article shall prevent a Party from adopting or maintaining measures inconsistent with paragraph 2 to achieve a legitimate public policy objective, provided that the measure:

(a) is not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade; and

(b) does not impose restrictions on the use or location of computing facilities greater than are required to achieve the objective.

Article 14.14: Unsolicited Commercial Electronic Messages

1. Each Party shall adopt or maintain measures regarding unsolicited commercial electronic messages that:

(a) require suppliers of unsolicited commercial electronic messages to facilitate the ability of recipients to prevent ongoing reception of those messages;

(b) require the consent, as specified according to the laws and regulations of each Party, of recipients to receive commercial electronic messages; or

2. Each Party shall provide recourse against suppliers of unsolicited commercial electronic messages that do not comply with the measures adopted or maintained pursuant to paragraph 1.

3. The Parties shall endeavour to cooperate in appropriate cases of mutual concern regarding the regulation of unsolicited commercial electronic messages.

Article 14.15: Cooperation

Recognising the global nature of electronic commerce, the Parties shall endeavour to:

(a) work together to assist SMEs to overcome obstacles to its use;

(b) exchange information and share experiences on regulations, policies, enforcement and compliance regarding electronic commerce, including:

(i) personal information protection;

(ii) online consumer protection, including means for consumer redress and building consumer confidence;

(iii) unsolicited commercial electronic messages;

(iv) security in electronic communications;

(v) authentication; and

(vi) e-government;

(d) participate actively in regional and multilateral fora to promote the development of electronic commerce; and

(e) encourage development by the private sector of methods of self regulation that foster electronic commerce, including codes of conduct, model contracts, guidelines and enforcement mechanisms.

Article 14.16: Cooperation on Cybersecurity Matters

The Parties recognise the importance of:

(a) building the capabilities of their national entities responsible for computer security incident response; and

(b) using existing collaboration mechanisms to cooperate to identify and mitigate malicious intrusions or dissemination of malicious code that affect the electronic networks of the Parties.

Article 14.17: Source Code

1. No Party shall require the transfer of, or access to, source code of software owned by a person of another Party, as a condition for the import, distribution, sale or use of such software, or of products containing such software, in its territory.

2. For the purposes of this Article, software subject to paragraph 1 is limited to mass-market software or products containing such software and does not include software used for critical infrastructure.

3. Nothing in this Article shall preclude:

(a) the inclusion or implementation of terms and conditions related to the provision of source code in commercially negotiated contracts; or

(b) a Party from requiring the modification of source code of software necessary for that software to comply with laws or regulations which are not inconsistent with this Agreement.

4. This Article shall not be construed to affect requirements that relate to patent applications or granted patents, including any orders made by a judicial authority in relation to patent disputes, subject to safeguards against unauthorised disclosure under the law or practice of a Party.

Article 14.18: Dispute Settlement

1. With respect to existing measures, Malaysia shall not be subject to dispute settlement under Chapter 28 (Dispute Settlement) regarding its obligations under Article 14.4 (Non-Discriminatory Treatment of Digital Products) and Article 14.11 (Cross-Border Transfer of Information by Electronic Means) for a period of two years after the date of entry into force of this Agreement for Malaysia.

2. With respect to existing measures, Viet Nam shall not be subject to dispute settlement under Chapter 28 (Dispute Settlement) regarding its obligations under Article 14.4 (Non-Discriminatory Treatment of Digital Products), Article 14.11 (Cross-Border Transfer of Information by Electronic Means) and Article 14.13 (Location of Computing Facilities) for a period of two years after the date of entry into force of this Agreement for Viet Nam.

CHAPTER 15

GOVERNMENT PROCUREMENT

Article 15.1: Definitions

For the purposes of this Chapter:

build-operate-transfer contract and public works concession contract means a contractual arrangement the primary purpose of which is to provide for the construction or rehabilitation of physical infrastructure, plants, buildings, facilities or other government-owned works and under which, as consideration for a supplier's execution of a contractual arrangement, a procuring entity grants to the supplier, for a specified period of time, temporary ownership or a right to control and operate, and demand payment for the use of those works for the duration of the contract;

commercial goods or services means goods or services of a type generally sold or offered for sale in the commercial marketplace to, and customarily purchased by, non-governmental buyers for non-governmental purposes;

in writing or written means any worded or numbered expression that can be read, reproduced and may be later communicated. It may include electronically transmitted and stored information;

limited tendering means a procurement method whereby the procuring entity contacts a supplier or suppliers of its choice;

multi-use list means a list of suppliers that a procuring entity has determined satisfy the conditions for participation in that list, and that the procuring entity intends to use more than once;

notice of intended procurement means a notice published by a procuring entity inviting interested suppliers to submit a request for participation, a tender or both;

offset means any condition or undertaking that requires the use of domestic content, a domestic supplier, the licensing of technology, technology transfer, investment, counter-trade or similar action to encourage local development or to improve a Party's balance of payments accounts;

open tendering means a procurement method whereby all interested suppliers may submit a tender;

procuring entity means an entity listed in Annex 15-A;

publish means to disseminate information through paper or electronic means that is distributed widely and is readily accessible to the general public;

qualified supplier means a supplier that a procuring entity recognises as having satisfied the conditions for participation;

selective tendering means a procurement method whereby the procuring entity invites only qualified suppliers to submit a tender;

services includes construction services, unless otherwise specified;

supplier means a person or group of persons that provides or could provide a good or service to a procuring entity; and

technical specification means a tendering requirement that:

(a) sets out the characteristics of:

(i) goods to be procured, including quality, performance, safety and dimensions, or the processes and methods for their production; or

(ii) services to be procured, or the processes or methods for their provision, including any applicable administrative provisions; or

(b) addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or service.

Article 15.2: Scope

Application of Chapter

1. This Chapter applies to any measure regarding covered procurement.

2. For the purposes of this Chapter, covered procurement means government procurement:

(a) of a good, service or any combination thereof as specified in each Party's Schedule to Annex 15-A;

(b) by any contractual means, including: purchase; rental or lease, with or without an option to buy; build-operate-transfer contracts and public works concessions contracts;

(c) for which the value, as estimated in accordance with paragraphs 8 and 9, equals or exceeds the relevant threshold specified in a Party's Schedule to Annex 15-A, at the time of publication of a notice of intended procurement;

(d) by a procuring entity; and

(e) that is not otherwise excluded from coverage under this Agreement.

Activities Not Covered

3. Unless otherwise provided in a Party's Schedule to Annex 15-A, this Chapter does not apply to:

(a) the acquisition or rental of land, existing buildings or other immovable property or the rights thereon;

(b) non-contractual agreements or any form of assistance that a Party, including its procuring entities, provides, including cooperative agreements, grants, loans, equity infusions, guarantees, subsidies, fiscal incentives and sponsorship arrangements;

(c) the procurement or acquisition of: fiscal agency or depository services; liquidation and management services for regulated financial institutions; or services related to the sale, redemption and distribution of public debt, including loans and government bonds, notes and other securities;

(d) public employment contracts;

(e) procurement:

(i) conducted for the specific purpose of providing international assistance, including development aid;

(ii) funded by an international organisation or foreign or international grants, loans or other assistance to which procurement procedures or conditions of the international organisation or donor apply. If the procedures or conditions of the international organisation or donor do not restrict the participation of suppliers then the procurement shall be subject to Article 15.4.1 (General Principles); or

(iii) conducted under the particular procedure or condition of an international agreement relating to the stationing of troops or relating to the joint implementation by the signatory countries of a project; and

(f) procurement of a good or service outside the territory of the Party of the procuring entity, for consumption outside the territory of that Party.

Schedules

4. Each Party shall specify the following information in its Schedule to Annex 15-A:

(a) in Section A, the central government entities whose procurement is covered by this Chapter;

(b) in Section B, the sub-central government entities whose procurement is covered by this Chapter;

(d) in Section D, the goods covered by this Chapter;

(e) in Section E, the services, other than construction services, covered by this Chapter;

(f) in Section F, the construction services covered by this Chapter; (g) in Section G, any General Notes;

(h) in Section H, the applicable Threshold Adjustment Formula;

(i) in Section I, the publication information required under Article 15.6.2 (Publication of Procurement Information); and

(j) in Section J, any transitional measures in accordance with Article 15.5 (Transitional Measures).

Compliance

5. Each Party shall ensure that its procuring entities comply with this Chapter in conducting covered procurements.

6. No procuring entity shall prepare or design a procurement, or otherwise structure or divide a procurement into separate procurements in any stage of the procurement, or use a particular method to estimate the value of a procurement, in order to avoid the obligations of this Chapter.

7. Nothing in this Chapter shall be construed to prevent a Party, including its procuring entities, from developing new procurement policies, procedures or contractual means, provided that they are not inconsistent with this Chapter.

Valuation

8. In estimating the value of a procurement for the purposes of ascertaining whether it is a covered procurement, a procuring entity shall include the estimated maximum total value of the procurement over its entire duration, taking into account:

(a) all forms of remuneration, including any premium, fee, commission, interest or other revenue stream that may be provided for under the contract;

(b) the value of any option clause; and

9. If the total estimated maximum value of a procurement over its entire duration is not known, the procurement shall be deemed a covered procurement, unless otherwise excluded under this Agreement.

Article 15.3: Exceptions

1. Subject to the requirement that the measure is not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between Parties where the same conditions prevail, or a disguised restriction on international trade between the Parties, nothing in this Chapter shall be construed to prevent a Party, including its procuring entities, from adopting or maintaining a measure:

(a) necessary to protect public morals, order or safety;

(b) necessary to protect human, animal or plant life or health; (c) necessary to protect intellectual property; or

(d) relating to the good or service of a person with disabilities, of philanthropic or not-for-profit institutions, or of prison labour.

2. The Parties understand that subparagraph 1(b) includes environmental measures necessary to protect human, animal or plant life or health.

Article 15.4: General Principles

National Treatment and Non-Discrimination

1. With respect to any measure regarding covered procurement, each Party, including its procuring entities, shall accord immediately and unconditionally to the goods and services of any other Party and to the suppliers of any other Party, treatment no less favourable than the treatment that the Party, including its procuring entities, accords to:

(a) domestic goods, services and suppliers; and

(b) goods, services and suppliers of any other Party.

For greater certainty, this obligation refers only to the treatment accorded by a Party to any good, service or supplier of any other Party under this Agreement.

2. With respect to any measure regarding covered procurement, no Party, including its procuring entities, shall:

(a) treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation or ownership; or

(b) discriminate against a locally established supplier on the basis that the good or service offered by that supplier for a particular procurement is a good or service of any other Party.

3. All orders under contracts awarded for covered procurement shall be subject to paragraphs 1 and 2 of this Article.

Procurement Methods

4. A procuring entity shall use an open tendering procedure for covered procurement unless Article 15.9 (Qualification of Suppliers) or Article 15.10 (Limited Tendering) applies.

Rules of Origin

5. Each Party shall apply to covered procurement of a good the rules of origin that it applies in the normal course of trade to that good.

Offsets

6. With regard to covered procurement, no Party, including its procuring entities, shall seek, take account of, impose or enforce any offset, at any stage of a procurement.

Measures Not Specific to Procurement

7. Paragraphs 1 and 2 shall not apply to customs duties and charges of any kind imposed on or in connection with importation, the method of levying such duties and charges, other import regulations or formalities, and measures affecting trade in services other than measures governing covered procurement.

Use of Electronic Means

8. The Parties shall seek to provide opportunities for covered procurement to be undertaken through electronic means, including for the publication of procurement information, notices and tender documentation, and for the receipt of tenders.

9. When conducting covered procurement by electronic means, a procuring entity shall:

(a) ensure that the procurement is conducted using information technology systems and software, including those related to authentication and encryption of information, that are generally available and interoperable with other generally available information technology systems and software; and

(b) establish and maintain mechanisms that ensure the integrity of information provided by suppliers, including requests for participation and tenders.

Article 15.5: Transitional Measures

1. A Party that is a developing country (developing country Party) may, with the agreement of the other Parties, adopt or maintain one or more of the following transitional measures, during a transition period set out in, and in accordance with, Section J of the Party's Schedule to Annex 15-A:

(a) a price preference programme, provided that the programme:

(i) provides a preference only for the part of the tender incorporating goods or services originating in that developing country Party; and

(ii) is transparent, and that the preference and its application in the procurement are clearly described in the notice of intended procurement;

(b) an offset, provided that any requirement for, or consideration of, the imposition of the offset is clearly stated in the notice of intended procurement;

(c) the phased-in addition of specific entities or sectors; and (d) a threshold that is higher than its permanent threshold.

A transitional measure shall be applied in a manner that does not discriminate between the other Parties.

2. The Parties may agree to the delayed application of any obligation in this Chapter, other than Article 15.4.1(b) (General Principles), by the developing country Party while that Party implements the obligation. The implementation period shall be only the period necessary to implement the obligation.

3. Any developing country Party that has negotiated an implementation period for an obligation under paragraph 2 shall list in its Schedule to Annex 15-A the agreed implementation period, the specific obligation subject to the implementation period and any interim obligation with which it has agreed to comply during the implementation period.

4. After this Agreement has entered into force for a developing country Party, the other Parties, on request of that developing country Party, may:

(a) extend the transition period for a measure adopted or maintained under paragraph 1 or any implementation period negotiated under paragraph 2; or

(b) approve the adoption of a new transitional measure under paragraph 1, in special circumstances that were unforeseen.

5. A developing country Party that has negotiated a transitional measure under paragraphs 1 or 4, an implementation period under paragraph 2, or any extension under paragraph 4, shall take those steps during the transition period or implementation period that may be necessary to ensure that it is in compliance with this Chapter at the end of any such period. The developing country Party shall promptly notify the other Parties of each step in accordance with Article 27.7 (Reporting in relation to Party-specific Transition Periods).

6. Each Party shall give consideration to any request by a developing country Party for technical cooperation and capacity building in relation to that Party's implementation of this Chapter.

Article 15.6: Publication of Procurement Information

1. Each Party shall promptly publish any measure of general application relating to covered procurement, and any change or addition to this information.

2. Each Party shall list in Section I of its Schedule to Annex 15-A the paper or electronic means through which the Party publishes the information described in paragraph 1 and the notices required by Article 15.7 (Notices of Intended Procurement), Article 15.9.3 (Qualification of Suppliers) and Article 15.16.3 (Post-Award Information).

3. Each Party shall, on request, respond to an inquiry relating to the information referred to in paragraph 1.

Article 15.7: Notices of Intended Procurement

1. For each covered procurement, except in the circumstances described in Article 15.10 (Limited Tendering), a procuring entity shall publish a notice of intended procurement through the appropriate paper or electronic means listed in Annex 15-A. The notices shall remain readily accessible to the public until at least the expiration of the time period for responding to the notice or the deadline for submission of the tender.

2. The notices shall, if accessible by electronic means, be provided free of charge:

(a) for central government entities that are covered under Annex 15-A, through a single point of access; and

(b) for sub-central government entities and other entities covered under Annex 15-A, through links in a single electronic portal.

3. Unless otherwise provided in this Chapter, each notice of intended procurement shall include the following information, unless that information is provided in the tender documentation that is made available free of charge to all interested suppliers at the same time as the notice of intended procurement:

(a) the name and address of the procuring entity and other information necessary to contact the procuring entity and obtain all relevant documents relating to the procurement, and the cost and terms of payment to obtain the relevant documents, if any;

(b) a description of the procurement, including, if appropriate, the nature and quantity of the goods or services to be procured and a description of any options, or the estimated quantity if the quantity is not known;

(d) if applicable, the address and any final date for the submission of requests for participation in the procurement;

(e) the address and the final date for the submission of tenders;

(f) the language or languages in which tenders or requests for participation may be submitted, if other than an official language of the Party of the procuring entity;

(g) a list and a brief description of any conditions for participation of suppliers, that may include any related requirements for specific documents or certifications that suppliers must provide;

(h) if, pursuant to Article 15.9 (Qualification of Suppliers), a procuring entity intends to select a limited number of qualified suppliers to be invited to tender, the criteria that will be used to select them and, if applicable, any limitation on the number of suppliers that will be permitted to tender; and

(i) an indication that the procurement is covered by this Chapter, unless that indication is publicly available through information published pursuant to Article 15.6.2 (Publication of Procurement Information).

4. For greater certainty, paragraph 3 does not preclude a Party from charging a fee for tender documentation if the notice of intended procurement includes all of the information set out in paragraph 3.

5. For the purposes of this Chapter, each Party shall endeavour to use English as the language for publishing the notice of intended procurement.

Notice of Planned Procurement

6. Procuring entities are encouraged to publish as early as possible in each fiscal year a notice regarding their future procurement plans (notice of planned procurement), which should include the subject matter of the procurement and the planned date of publication of the notice of intended procurement.

Article 15.8: Conditions for Participation

1. A procuring entity shall limit any conditions for participation in a covered procurement to those conditions that ensure that a supplier has the legal and financial capacities and the commercial and technical abilities to fulfil the requirements of that procurement.

2. In establishing the conditions for participation, a procuring entity:

(a) shall not impose the condition that, in order for a supplier to participate in a procurement, the supplier has previously been awarded one or more contracts by a procuring entity of a given Party or that the supplier has prior work experience in the territory of that Party; and

(b) may require relevant prior experience if essential to meet the requirements of the procurement.

3. In assessing whether a supplier satisfies the conditions for participation, a procuring entity shall:

(a) evaluate the financial capacity and the commercial and technical abilities of a supplier on the basis of that supplier's business activities both inside and outside the territory of the Party of the procuring entity; and

(b) base its evaluation solely on the conditions that the procuring entity has specified in advance in notices or tender documentation.

4. If there is supporting material, a Party, including its procuring entities, may exclude a supplier on grounds such as:

(a) bankruptcy or insolvency;

(b) false declarations;

(c) significant or persistent deficiencies in the performance of any substantive requirement or obligation under a prior contract or contracts; or

(d) failure to pay taxes.

5. For greater certainty, this Article is not intended to preclude a procuring entity from promoting compliance with laws in the territory in which the good is produced or the service is performed relating to labour rights as recognised by the Parties and set forth in Article 19.3 (Labour Rights), provided that such measures are applied in a manner consistent with Chapter 26 (Transparency and Anti Corruption), and are not applied in a manner that constitutes a means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction on trade between the Parties.

Article 15.9: Qualification of Suppliers

Registration Systems and Qualification Procedures

1. A Party, including its procuring entities, may maintain a supplier registration system under which interested suppliers are required to register and provide certain information.

2. No Party, including its procuring entities, shall:

(a) adopt or apply any registration system or qualification procedure with the purpose or the effect of creating unnecessary obstacles to the participation of suppliers of another Party in its procurement; or

(b) use such registration system or qualification procedure to prevent or delay the inclusion of suppliers of other Parties on a list of suppliers or prevent those suppliers from being considered for a particular procurement.

Selective Tendering

3. If a Party's measures authorise the use of selective tendering, and if a procuring entity intends to use selective tendering, the procuring entity shall:

(a) publish a notice of intended procurement that invites suppliers to submit a request for participation in a covered procurement; and

(b) include in the notice of intended procurement the information specified in Article 15.7.3(a), (b), (d), (g), (h) and (i) (Notices of Intended Procurement).

4. The procuring entity shall:

(a) publish the notice sufficiently in advance of the procurement to allow interested suppliers to request participation in the procurement;

(b) provide, by the commencement of the time period for tendering, at least the information in Article 15.7.3 (c), (e) and (f) (Notices of Intended Procurement) to the qualified suppliers that it notifies as specified in Article 15.14.3(b) (Time Periods); and

(c) allow all qualified suppliers to submit a tender, unless the procuring entity stated in the notice of intended procurement a limitation on the number of suppliers that will be permitted to tender and the criteria or justification for selecting the limited number of suppliers.

5. If the tender documentation is not made publicly available from the date of publication of the notice referred to in paragraph 3, the procuring entity shall ensure that the tender documentation is made available at the same time to all the qualified suppliers selected in accordance with paragraph 4(c).

Multi-Use Lists

6. A Party, including its procuring entities, may establish or maintain a multi use list provided that it publishes annually, or otherwise makes continuously available by electronic means, a notice inviting interested suppliers to apply for inclusion on the list. The notice shall include:

(a) a description of the goods and services, or categories thereof, for which the list may be used;

(b) the conditions for participation to be satisfied by suppliers for inclusion on the list and the methods that the procuring entity or other government agency will use to verify a supplier's satisfaction of those conditions;

(c) the name and address of the procuring entity or other government agency and other information necessary to contact the procuring entity and to obtain all relevant documents relating to the list;

(d) the period of validity of the list and the means for its renewal or termination or, if the period of validity is not provided, an indication of the method by which notice will be given of the termination of use of the list;

(e) the deadline for submission of applications for inclusion on the list, if applicable; and

(f) an indication that the list may be used for procurement covered by this Chapter, unless that indication is publicly available through information published pursuant to Article 15.6.2 (Publication of Procurement Information).

7. A Party, including its procuring entities, that establishes or maintains a multi-use list, shall include on the list, within a reasonable period of time, all suppliers that satisfy the conditions for participation set out in the notice referred to in paragraph 6.

8. If a supplier that is not included on a multi-use list submits a request for participation in a procurement based on the multi-use list and submits all required documents, within the time period provided for in Article 15.14.2 (Time Periods), a procuring entity shall examine the request. The procuring entity shall not exclude the supplier from consideration in respect of the procurement unless the procuring entity is not able to complete the examination of the request within the time period allowed for the submission of tenders.

Information on Procuring Entity Decisions

9. A procuring entity or other entity of a Party shall promptly inform any supplier that submits a request for participation in a procurement or application for inclusion on a multi-use list of the decision with respect to the request or application.

10. If a procuring entity or other entity of a Party rejects a supplier's request for participation or application for inclusion on a multi-use list, ceases to recognise a supplier as qualified, or removes a supplier from a multi-use list, the entity shall promptly inform the supplier and on request of the supplier, promptly provide the supplier with a written explanation of the reason for its decision.

Article 15.10: Limited Tendering

1. Provided that it does not use this provision for the purpose of avoiding competition between suppliers, to protect domestic suppliers or in a manner that discriminates against suppliers of any other Party, a procuring entity may use limited tendering.

2. If a procuring entity uses limited tendering, it may choose, according to the nature of the procurement, not to apply Article 15.7 (Notices of Intended Procurement), Article 15.8 (Conditions for Participation), Article 15.9 (Qualification of Suppliers), Article 15.11 (Negotiations), Article 15.12 (Technical Specifications), Article 15.13 (Tender Documentation), Article 15.14 (Time Periods) or Article 15.15 (Treatment of Tenders and Awarding of Contracts). A procuring entity may use limited tendering only under the following circumstances:

(a) if, in response to a prior notice, invitation to participate or invitation to tender:

(i) no tenders were submitted or no suppliers requested participation;

(ii) no tenders were submitted that conform to the essential requirements in the tender documentation;

(iii) no suppliers satisfied the conditions for participation; or (iv) the tenders submitted were collusive, provided that the procuring entity does not substantially modify the essential requirements set out in the notices or tender documentation;

(b) if the good or service can be supplied only by a particular supplier and no reasonable alternative or substitute good or service exists for any of the following reasons:

(i) the requirement is for a work of art;

(ii) the protection of patents, copyrights or other exclusive rights; or

(iii) due to an absence of competition for technical reasons;

(c) for additional deliveries by the original supplier or its authorised agents, of goods or services that were not included in the initial procurement if a change of supplier for such additional goods or services:

(i) cannot be made for technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services or installations procured under the initial procurement, or due to conditions under original supplier warranties; and

(ii) would cause significant inconvenience or substantial duplication of costs for the procuring entity;

(d) for a good purchased on a commodity market or exchange;

(e) if a procuring entity procures a prototype or a first good or service that is intended for limited trial or that is developed at its request in the course of, and for, a particular contract for research, experiment, study or original development. Original development of a prototype or a first good or service may include limited production or supply in order to incorporate the results of field testing and to demonstrate that the prototype or the first good or service is suitable for production or supply in quantity to acceptable quality standards, but does not include quantity production or supply to establish commercial viability or to recover research and development costs. Subsequent procurements of these newly developed goods or services, however, shall be subject to this Chapter;

(f) if additional construction services that were not included in the initial contract but that were within the objectives of the original tender documentation have, due to unforeseeable circumstances, become necessary to complete the construction services described therein. However, the total value of contracts awarded for additional construction services may not exceed 50 per cent of the value of the initial contract;

(g) for purchases made under exceptionally advantageous conditions that only arise in the very short term, such as from unusual disposals, liquidation, bankruptcy or receivership, but not for routine purchases from regular suppliers;

(h) if a contract is awarded to the winner of a design contest, provided that:

(i) the contest has been organised in a manner that is consistent with this Chapter; and

(ii) the contest is judged by an independent jury with a view to award a design contract to the winner; or

(i) in so far as is strictly necessary if, for reasons of extreme urgency brought about by events unforeseeable by the procuring entity, the good or service could not be obtained in time by means of open or selective tendering.

3. For each contract awarded in accordance with paragraph 2, a procuring entity shall prepare a report in writing, or maintain a record, that includes the name of the procuring entity, the value and kind of good or service procured, and a statement that indicates the circumstances and conditions described in paragraph 2 that justified the use of limited tendering.

Article 15.11: Negotiations

1. A Party may provide for its procuring entities to conduct negotiations in the context of covered procurement if:

(a) the procuring entity has indicated its intent to conduct negotiations in the notice of intended procurement required under Article 15.7 (Notices of Intended Procurement); or

(b) it appears from the evaluation that no tender is obviously the most advantageous in terms of the specific evaluation criteria set out in the notice of intended procurement or tender documentation.

2. A procuring entity shall:

(a) ensure that any elimination of suppliers participating in negotiations is carried out in accordance with the evaluation criteria set out in the notice of intended procurement or tender documentation; and

(b) when negotiations are concluded, provide a common deadline for the remaining participating suppliers to submit any new or revised tenders.

Article 15.12: Technical Specifications

1. A procuring entity shall not prepare, adopt or apply any technical specification or prescribe any conformity assessment procedure with the purpose or effect of creating an unnecessary obstacle to trade between the Parties.

2. In prescribing the technical specifications for the good or service being procured, a procuring entity shall, if appropriate:

(a) set out the technical specifications in terms of performance and functional requirements, rather than design or descriptive characteristics; and

(b) base the technical specifications on international standards, if these exist; otherwise, on national technical regulations, recognised national standards or building codes.

3. A procuring entity shall not prescribe technical specifications that require or refer to a particular trademark or trade name, patent, copyright, design, type, specific origin, producer or supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement requirements and provided that, in these cases, the procuring entity includes words such as "or equivalent" in the tender documentation.

4. A procuring entity shall not seek or accept, in a manner that would have the effect of precluding competition, advice that may be used in the preparation or adoption of any technical specification for a specific procurement from a person that may have a commercial interest in the procurement.

5. For greater certainty, a procuring entity may conduct market research in developing specifications for a particular procurement.

6. For greater certainty, this Article is not intended to preclude a procuring entity from preparing, adopting or applying technical specifications to promote the conservation of natural resources or the protection of the environment.

7. For greater certainty, this Chapter is not intended to preclude a Party, or its procuring entities, from preparing, adopting or applying technical specifications required to protect sensitive government information, including specifications that may affect or limit the storage, hosting or processing of such information outside the territory of the Party.

Article 15.13: Tender Documentation

1. A procuring entity shall promptly make available or provide on request to any interested supplier tender documentation that includes all information necessary to permit the supplier to prepare and submit a responsive tender. Unless already provided in the notice of intended procurement, that tender documentation shall include a complete description of:

(a) the procurement, including the nature, scope and, if known, the quantity of the good or service to be procured or, if the quantity is not known, the estimated quantity and any requirements to be fulfilled, including any technical specifications, conformity certification, plans, drawings or instructional materials;

(b) any conditions for participation, including any financial guarantees, information and documents that suppliers are required to submit;

(d) if there will be a public opening of tenders, the date, time and place for the opening;

(e) any other terms or conditions relevant to the evaluation of tenders; and

(f) any date for delivery of a good or supply of a service.

2. In establishing any date for the delivery of a good or the supply of a service being procured, a procuring entity shall take into account factors such as the complexity of the procurement.

3. A procuring entity shall promptly reply to any reasonable request for relevant information by an interested or participating supplier, provided that the information does not give that supplier an advantage over other suppliers.

Modifications

4. If, prior to the award of a contract, a procuring entity modifies the evaluation criteria or requirements set out in a notice of intended procurement or tender documentation provided to a participating supplier, or amends or re-issues a notice or tender documentation, it shall publish or provide those modifications,

or the amended or re-issued notice or tender documentation:

(a) to all suppliers that are participating in the procurement at the time of the modification, amendment or re-issuance, if those suppliers are known to the procuring entity, and in all other cases, in the same manner as the original information was made available; and

(b) in adequate time to allow those suppliers to modify and re-submit their initial tender, if appropriate.

Article 15.14: Time Periods

General

1. A procuring entity shall, consistent with its own reasonable needs, provide sufficient time for a supplier to obtain the tender documentation and to prepare and submit a request for participation and a responsive tender, taking into account factors such as:

(a) the nature and complexity of the procurement; and

(b) the time necessary for transmitting tenders by non-electronic means from foreign as well as domestic points if electronic means are not used.

Deadlines

2. A procuring entity that uses selective tendering shall establish that the final date for the submission of a request for participation shall not, in principle, be less than 25 days from the date of publication of the notice of intended procurement. If a state of urgency duly substantiated by the procuring entity renders this time period impracticable, the time period may be reduced to no less than 10 days.

3. Except as provided in paragraphs 4 and 5, a procuring entity shall establish that the final date for the submission of tenders shall not be less than 40 days from the date on which:

(a) in the case of open tendering, the notice of intended procurement is published; or

(b) in the case of selective tendering, the procuring entity notifies the suppliers that they will be invited to submit tenders, whether or not it uses a multi-use list.

4. A procuring entity may reduce the time period for tendering set out in paragraph 3 by five days for each one of the following circumstances:

(a) the notice of intended procurement is published by electronic means;

(b) the tender documentation is made available by electronic means from the date of the publication of the notice of intended procurement; and

5. A procuring entity may reduce the time period for tendering set out in paragraph 3 to no less than 10 days if:

(a) the procuring entity has published a notice of planned procurement under Article 15.7 (Notices of Intended Procurement) at least 40 days and no more than 12 months in advance of the publication of the notice of intended procurement, and the notice of planned procurement contains:

(i) a description of the procurement;

(ii) the approximate final dates for the submission of tenders or requests for participation;

(iii) the address from which documents relating to the procurement may be obtained; and

(iv) as much of the information that is required for the notice of intended procurement as is available;

(b) a state of urgency duly substantiated by the procuring entity renders impracticable the time period for tendering set out in paragraph 3; or

6. The use of paragraph 4, in conjunction with paragraph 5, shall in no case result in the reduction of the time periods for tendering set out in paragraph 3 to less than 10 days.

7. A procuring entity shall require all interested or participating suppliers to submit requests for participation or tenders in accordance with a common deadline. These time periods, and any extension of these time periods, shall be the same for all interested or participating suppliers.

Article 15.15: Treatment of Tenders and Awarding of Contracts

Treatment of Tenders

1. A procuring entity shall receive, open and treat all tenders under procedures that guarantee the fairness and impartiality of the procurement process and the confidentiality of tenders.

2. If a procuring entity provides a supplier with an opportunity to correct unintentional errors of form between the opening of tenders and the awarding of the contract, the procuring entity shall provide the same opportunity to all participating suppliers.

Awarding of Contracts

3. To be considered for an award, a tender shall be submitted in writing and shall, at the time of opening, comply with the essential requirements set out in the notice and tender documentation and be submitted by a supplier who satisfies the conditions for participation.

4. Unless a procuring entity determines that it is not in the public interest to award a contract, it shall award the contract to the supplier that the procuring entity has determined to be fully capable of fulfilling the terms of the contract and that, based solely on the evaluation criteria specified in the notice and tender documentation, submits:

(a) the most advantageous tender; or

(b) if price is the sole criterion, the lowest price.

5. A procuring entity shall not use options, cancel a covered procurement, or modify or terminate awarded contracts in order to avoid the obligations of this Chapter.

Article 15.16: Post-Award Information

Information Provided to Suppliers

1. A procuring entity shall promptly inform suppliers that have submitted a tender of the contract award decision. The procuring entity may do so in writing or through the prompt publication of the notice in paragraph 3, provided that the notice includes the date of award. If a supplier has requested the information in writing, the procuring entity shall provide it in writing.

2. Subject to Article 15.17 (Disclosure of Information), a procuring entity shall, on request, provide an unsuccessful supplier with an explanation of the reasons why the procuring entity did not select the unsuccessful supplier's tender or an explanation of the relative advantages of the successful supplier's tender.

Publication of Award Information

3. A procuring entity shall, promptly after the award of a contract for a covered procurement, publish in an officially designated publication a notice containing at least the following information:

(a) a description of the good or service procured;

(b) the name and address of the procuring entity;

(d) the value of the contract award;

(e) the date of award or, if the procuring entity has already informed suppliers of the date of the award under paragraph 1, the contract date; and

(f) the procurement method used and, if a procedure was used pursuant to Article 15.10 (Limited Tendering), a brief description of the circumstances justifying the use of that procedure.

Maintenance of Records

4. A procuring entity shall maintain the documentation, records and reports relating to tendering procedures and contract awards for covered procurement, including the records and reports provided for in Article 15.10.3 (Limited Tendering), for at least three years after the award of a contract.

Article 15.17: Disclosure of Information

Provision of Information to Parties

1. On request of any other Party, a Party shall provide promptly information sufficient to demonstrate whether a procurement was conducted fairly, impartially and in accordance with this Chapter, including, if applicable, information on the characteristics and relative advantages of the successful tender, without disclosing confidential information. The Party that receives the information shall not disclose it to any supplier, except after consulting with, and obtaining the agreement of, the Party that provided the information.

Non-Disclosure of Information

2. Notwithstanding any other provision of this Chapter, a Party, including its procuring entities, shall not, except to the extent required by law or with the written authorisation of the supplier that provided the information, disclose information that would prejudice legitimate commercial interests of a particular supplier or that might prejudice fair competition between suppliers.

3. Nothing in this Chapter shall be construed to require a Party, including its procuring entities, authorities and review bodies, to disclose confidential information if that disclosure:

(a) would impede law enforcement;

(b) might prejudice fair competition between suppliers;

(c) would prejudice the legitimate commercial interests of particular persons, including the protection of intellectual property; or

(d) would otherwise be contrary to the public interest.

Article 15.18: Ensuring Integrity in Procurement Practices

Each Party shall ensure that criminal or administrative measures exist to address corruption in its government procurement. These measures may include procedures to render ineligible for participation in the Party's procurements, either indefinitely or for a stated period of time, suppliers that the Party has determined to have engaged in fraudulent or other illegal actions in relation to government procurement in the Party's territory. Each Party shall also ensure that it has in place policies and procedures to eliminate to the extent possible or manage any potential conflict of interest on the part of those engaged in or having influence over a procurement.

Article 15.19: Domestic Review

1. Each Party shall maintain, establish or designate at least one impartial administrative or judicial authority (review authority) that is independent of its procuring entities to review, in a non-discriminatory, timely, transparent and effective manner, a challenge or complaint (complaint) by a supplier that there has been:

(a) a breach of this Chapter; or

(b) if the supplier does not have a right to directly challenge a breach of this Chapter under the law of a Party, a failure of a procuring entity to comply with the Party's measures implementing this Chapter, arising in the context of a covered procurement, in which the supplier has, or had, an interest. The procedural rules for all complaints shall be in writing and made generally available.

2. In the event of a complaint by a supplier, arising in the context of covered procurement in which the supplier has, or had, an interest, that there has been a breach or a failure as referred to in paragraph 1, the Party of the procuring entity conducting the procurement shall encourage, if appropriate, the procuring entity and the supplier to seek resolution of the complaint through consultations. The procuring entity shall accord impartial and timely consideration to the complaint in a manner that is not prejudicial to the supplier's participation in ongoing or future procurement or to its right to seek corrective measures under the administrative or judicial review procedure. Each Party shall make information on its complaint mechanisms generally available.

3. If a body other than the review authority initially reviews a complaint, the Party shall ensure that the supplier may appeal the initial decision to the review authority that is independent of the procuring entity that is the subject of the complaint.

4. If the review authority has determined that there has been a breach or a failure as referred to in paragraph 1, a Party may limit compensation for the loss or damages suffered to either the costs reasonably incurred in the preparation of the tender or in bringing the complaint, or both.

5. Each Party shall ensure that, if the review authority is not a court, its review procedures are conducted in accordance with the following procedures:

(a) a supplier shall be allowed sufficient time to prepare and submit a complaint in writing, which in no case shall be less than 10 days from the time when the basis of the complaint became known or reasonably should have become known to the supplier;

(b) a procuring entity shall respond in writing to a supplier's complaint and provide all relevant documents to the review authority;

(c) a supplier that initiates a complaint shall be provided an opportunity to reply to the procuring entity's response before the review authority takes a decision on the complaint; and

(d) the review authority shall provide its decision on a supplier's complaint in a timely fashion, in writing, with an explanation of the basis for the decision.

6. Each Party shall adopt or maintain procedures that provide for:

(a) prompt interim measures, pending the resolution of a complaint, to preserve the supplier's opportunity to participate in the procurement and to ensure that the procuring entities of the Party comply with its measures implementing this Chapter; and

(b) corrective action that may include compensation under paragraph 4.

The procedures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account when deciding whether those measures should be applied. Just cause for not acting shall be provided in writing.

Article 15.20: Modifications and Rectifications of Annex

1. A Party shall notify any proposed modification or rectification (modification) to its Schedule to Annex 15-A by circulating a notice in writing to the other Parties through the overall contact points designated under Article 27.5 (Contact Points). A Party shall provide compensatory adjustments for a change in coverage if necessary to maintain a level of coverage comparable to the coverage that existed prior to the modification. The Party may include the offer of compensatory adjustment in its notice.

2. A Party is not required to provide compensatory adjustments to the other Parties if the proposed modification concerns one of the following:

(a) a procuring entity over which the Party has effectively eliminated its control or influence in respect of covered procurement by that procuring entity; or

(b) rectifications of a purely formal nature and minor modifications to its Schedule to Annex 15-A, such as:

(i) changes in the name of a procuring entity;

(ii) the merger of one or more procuring entities listed in its Schedule;

(iii) the separation of a procuring entity listed in its Schedule into two or more procuring entities that are all added to the procuring entities listed in the same Section of the Annex; and

(iv) changes in website references, and no Party objects under paragraph 3 on the basis that the proposed modification does not concern subparagraph (a) or (b).

3. Any Party whose rights under this Chapter may be affected by a proposed modification that is notified under paragraph 1 shall notify the other Parties of any objection to the proposed modification within 45 days of the date of circulation of the notice.

4. If a Party objects to a proposed modification, including a modification regarding a procuring entity on the basis that government control or influence over the entity's covered procurement has been effectively eliminated, that Party may request additional information, including information on the nature of any government control or influence, with a view to clarifying and reaching agreement on the proposed modification, including the procuring entity's continued coverage under this Chapter. The modifying Party and any objecting Party shall make every attempt to resolve the objection through consultations.

5. If the modifying Party and any objecting Party resolve the objection through consultations, the modifying Party shall notify the other Parties of the resolution.

6. The Commission shall modify Annex 15-A to reflect any agreed modification.

Article 15.21: Facilitation of Participation by SMEs

1. The Parties recognise the important contribution that SMEs can make to economic growth and employment and the importance of facilitating the participation of SMEs in government procurement.

2. If a Party maintains a measure that provides preferential treatment for SMEs, the Party shall ensure that the measure, including the criteria for eligibility, is transparent.

3. To facilitate participation by SMEs in covered procurement, each Party shall, to the extent possible and if appropriate:

(a) provide comprehensive procurement-related information that includes a definition of SMEs in a single electronic portal;

(b) endeavour to make all tender documentation available free of 15-26 charge;

(d) consider the size, design and structure of the procurement, including the use of subcontracting by SMEs.

Article 15.22: Cooperation

1. The Parties recognise their shared interest in cooperating to promote international liberalisation of government procurement markets with a view to achieving enhanced understanding of their respective government procurement systems and to improving access to their respective markets.

2. The Parties shall endeavour to cooperate in matters such as:

(a) facilitating participation by suppliers in government procurement, in particular, with respect to SMEs;

(b) exchanging experiences and information, such as regulatory frameworks, best practices and statistics;

(d) building capability of government officials in best government procurement practices;

(e) institutional strengthening for the fulfilment of the provisions of this Chapter; and

(f) enhancing the ability to provide multilingual access to procurement opportunities.

Article 15.23: Committee on Government Procurement

The Parties hereby establish a Committee on Government Procurement (Committee), composed of government representatives of each Party. On request of a Party, the Committee shall meet to address matters related to the implementation and operation of this Chapter, such as:

(a) cooperation between the Parties, as provided for in Article 15.22 (Cooperation);

(b) facilitation of participation by SMEs in covered procurement, as provided for in Article 15.21 (Facilitation of Participation by SMEs);

(d) consideration of further negotiations as provided for in Article 15.24 (Further Negotiations).

Article 15.24: Further Negotiations

1. The Committee shall review this Chapter and may decide to hold further negotiations with a view to:

(a) improving market access coverage through enlargement of procuring entity lists and reduction of exclusions and exceptions as set out in Annex 15-A;

(b) revising the thresholds set out in Annex 15-A;

(d) reducing and eliminating discriminatory measures.

2. No later than three years after the date of entry into force of this Agreement, the Parties shall commence negotiations with a view to achieving expanded coverage, including sub-central coverage. Parties may also agree to cover sub-central government procurement prior to or following the start of those negotiations.

ANNEX 15-A

SCHEDULE OF AUSTRALIA

SECTION A: Central Government Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to central government entities listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2.8 (Scope), to equal or exceed:

(a) for procurement of goods and services, 130,000 SDRs; and

(b) for procurement of construction services, 5,000,000 SDRs.

2. The monetary thresholds set out in paragraphs 1(a) and 1(b) shall be adjusted in accordance with Section H of this Schedule.

List of Entities:

1. Administrative Appeals Tribunal

2. Attorney-General's Department

3. Australian Aged Care Quality Agency

4. Australian Bureau of Statistics

5. Australian Centre for International Agricultural Research

6. Australian Crime Commission

7. Australian Electoral Commission

8. Australian Federal Police

9. Australian Institute of Criminology

10. Australian Law Reform Commission

11. Australian National Audit Office

12. Australian Office of Financial Management (AOFM)

13. Australian Public Service Commission

14. Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)

15. Australian Research Council

16. Australian Taxation Office

17. Australian Trade Commission (Austrade)

18. Australian Transaction Reports and Analysis Centre (AUSTRAC) 19. Australian Transport Safety Bureau

20. Bureau of Meteorology

21. Commonwealth Grants Commission

22. CrimTrac Agency

23. Department of Agriculture and Water Resources

24. Department of Communications and the Arts

25. Department of Defence

26. Department of Education and Training

27. Department of Employment

28. Department of Finance

29. Department of Foreign Affairs and Trade

30. Department of Health

31. Department of Human Services

32. Department of Immigration and Border Protection

33. Department of Industry, Innovation and Science

34. Department of Infrastructure and Regional Development

35. Department of Parliamentary Services

36. Department of Social Services

37. Department of the Environment

38. Department of the House of Representatives

39. Department of the Prime Minister and Cabinet

40. Department of the Senate

41. Department of the Treasury

42. Department of Veterans' Affairs

43. Fair Work Commission

44. Family Court and Federal Circuit Court

45. Federal Court of Australia

46. Geoscience Australia

47. Inspector-General of Taxation

48. IP Australia

49. National Archives of Australia

50. National Blood Authority

51. National Capital Authority

52. National Competition Council

53. Office of Parliamentary Counsel

54. Office of the Australian Accounting Standards Board

55. Office of the Australian Information Commissioner

56. Office of the Commonwealth Ombudsman

57. Office of the Director of Public Prosecutions

58. Office of the Fair Work Ombudsman

59. Office of the Inspector-General of Intelligence and Security

60. Office of the Official Secretary to the Governor-General

61. Old Parliament House

62. Productivity Commission

63. Professional Services Review Scheme

64. Royal Australian Mint

65. Safe Work Australia

66. Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) 67. Workplace Gender Equality Agency

Notes to Section A

1. Chapter 15 (Government Procurement) shall only cover those entities listed (including an office within a listed entity) in this Section.

2. Chapter 15 (Government Procurement) shall not cover the procurement of motor vehicles by any entity listed in this Section.

3. Chapter 15 (Government Procurement) shall not cover procurement relating to the functions of the Australian Government Solicitor.

4. Department of Defence

(a) Chapter 15 (Government Procurement) shall not cover Department of Defence procurement of the following goods due to Article 29.2 (Security Exceptions):

Note: Whether a good is included within the scope of this Note shall be determined solely according to the descriptions provided in the left column above. U.S. Federal Supply Codes are provided for reference purposes only. For a complete listing of the United States Federal Supply Codes, to which the Australian categories are approximately equivalent, see https://www.fbo.gov/.

(b) For Australia, Chapter 15 (Government Procurement) shall not cover the following services, as elaborated in the Common Classification System and the WTO system of classification – MTN.GNS/W/120, due to Article 29.2 (Security Exceptions). For a complete listing of Common Classification System, see http://www.sice.oas.org/trade/nafta/chap-105.asp.

(i) Design, development, integration, test, evaluation, maintenance, repair, modification, rebuilding and installation of military systems and equipment (approximately equivalent to relevant parts of U.S. Product Service Codes A & J).

(ii) Operation of Government-owned Facilities (approximately equivalent to) U.S. Product Service Code M).

(iii) Space services (AR, B4 & V3).

(iv) Services in support of military forces overseas.

(c) Chapter 15 (Government Procurement) shall not cover the procurement of goods and services by, or on behalf of, the Defence Intelligence Organisation, the Australian Signals Directorate, or the Australian Geospatial-Intelligence Organisation.

(d) In respect of Article 15.4 (National Treatment and Non-Discrimination) the Australian Government reserves the right, pursuant to Article 29.2 (Security Exceptions), to maintain the Australian industry capability programme and its successor programmes and policies.

(e) In respect of the Department of Defence, a good or a service is covered with respect to Viet Nam only to the extent that Viet Nam has covered that good or service in its Schedule.

SECTION B: Sub-Central Government Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to sub-central government entities listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2.8 (Scope), to equal or exceed:

(a) for procurement of goods and services, 355,000 SDR; and

(b) for procurement of construction services, 5,000,000 SDR.

2. The monetary thresholds set out in paragraphs 1(a) and 1(b) shall be adjusted in accordance with Section H of this Schedule.

List of Entities:

Chapter 15 (Government Procurement) shall cover only those entities specifically listed in this Section.

Australian Capital Territory

1. ACT Gambling and Racing Commission

2. ACT Insurance Authority

3. ACTION

4. ACT Auditor-General

5. Capital Metro Authority

6. Chief Minister, Treasury and Economic Development Directorate 7. Community Services Directorate

8. Cultural Facilities Corporation

9. Education and Training Directorate

10. Environment and Planning Directorate

11. Health Directorate

12. Housing ACT

13. Independent Competition and Regulatory Commission

14. Justice and Community Safety Directorate

15. Legal Aid Commission

16. Ombudsman of the ACT

17. Territory and Municipal Services Directorate

Note:For the entities listed for the Australian Capital Territory, Chapter 15 (Government Procurement) shall not cover the procurement of health and welfare services, education services, utility services, or motor vehicles.

New South Wales

1. Advocate for Children and Young People

2. Board of Studies, Teaching and Education Standards

3. Crown Solicitor's Office

4. Department of Education

5. Department of Family and Community Services

6. Department of Finance, Services and Innovation

7. Department of Industry, Skills and Regional Development

8. Department of Justice

9. Department of Planning and Environment

10. Department of Premier and Cabinet

11. Environment Protection Authority

12. Fire and Rescue NSW

13. Health Care Complaints Commission

14. Information and Privacy Commission (Note 3)

15. Legal Aid NSW

16. Ministry of Health

17. Ministry for Police and Emergency Services

18. Motor Accidents Authority of NSW

19. Multicultural NSW

20. New South Wales Crime Commission

21. New South Wales Electoral Commission

22. NSW Food Authority

23. New South Wales Ombudsman

24. NSW Rural Assistance Authority

25. New South Wales Rural Fire Service

26. Office of the Director of Public Prosecutions NSW

27. Office of Environment and Heritage

28. Office of the Local Government

29. Parliamentary Counsel's Office

30. Police Integrity Commission

31. Public Service Commission

32. State Emergency Service

33. Sydney Harbour Foreshore Authority

34. Sydney Olympic Park Authority

35. The Audit Office of New South Wales

36. The Treasury

37. Transport for NSW (Note 4)

38. WorkCover NSW

Note:

1. For the entities listed for New South Wales, Chapter 15 (Government Procurement) shall not cover the procurement of health and welfare services, education services or motor vehicles.

2. For the entities listed for New South Wales, Chapter 15 (Government Procurement) shall not apply to procurements undertaken by a covered entity on behalf of a non-covered entity.

3. Chapter 15 (Government Procurement) shall not cover procurement related to the functions of the Privacy Commission by the Information and Privacy Commission.

4. Chapter 15 (Government Procurement) shall not cover procurement by Transport for NSW, related to the functions of the Transport Construction Authority, and the Country Rail Infrastructure Authority or its successor agencies.

Northern Territory

1. Aboriginal Areas Protection Authority

2. Auditor General's Office

3. Central Australian Hospital Network

4. Department of Arts and Museums

5. Department of Business

6. Department of Children and Families

7. Department of Community Services

8. Department of Correctional Services

9. Department of Health

10. Department of Housing

11. Department of Land Resource Management

12. Department of Lands, Planning and the Environment

13. Department of Local Government and Regions

14. Department of Mines and Energy

15. Department of Primary Industry and Fisheries

16. Department of Sport and Recreation and Racing

17. Department of the Attorney-General and Justice

18. Department of the Chief Minister

19. Department of the Legislative Assembly

20. Department of Treasury and Finance

21. Health and Community Services Complaints Commission

22. Land Development Corporation

23. Museum and Art Galleries Board

24. Northern Territory Electoral Commission

25. Northern Territory Emergency Service

26. Northern Territory Employment and Training Authority

27. Northern Territory Fire and Rescue Service

28. Northern Territory Licensing Commission

29. Office of the Commissioner for Public Employment

30. Ombudsman's Office

31. Parks and Wildlife Commission of the Northern Territory

32. Police Force of the Northern Territory

33. Racing Commission

34. Remuneration Tribunal

35. Strehlow Research Centre Board

36. Top End Hospital Network

37. Tourism NT

38. Utilities Commission of the Northern Territory

39. Work Health Authority

Note: For the entities listed for the Northern Territory, Chapter 15 (Government Procurement) does not cover set-asides on behalf of the Charles Darwin University pursuant to Partnership Agreements between the Northern Territory Government and Charles Darwin University.

Queensland

Entities declared to be departments pursuant to section 14 of the Public Service Act 2008 (Qld):

1. Motor Accident Insurance Commission

2. Nominal Defendant

3. Public Service Commission

4. Public Trust Office

Note:

1. For the entities listed for Queensland, Chapter 15 (Government Procurement) shall not apply to procurement:

(a) by covered entities on behalf of non-covered entities;

(b) undertaken by departments, or parts of departments, which deliver health, education, training or arts services; or

(c) of health services, education services, training services, arts services, welfare services, government advertising and motor vehicles.

2. For entities listed for Queensland, Article 15.16.3(f) (Post Award Information) shall not apply for a period of three years from the date of entry into force of Chapter 15 (Government Procurement), so as to allow time for the entities listed for Queensland to make necessary modifications to electronic means to enable the publication of such information.

South Australia

1. Attorney-General's Department

2. Auditor-General's Department

3. Country Fire Service

4. Courts Administration Authority

5. Defence SA

6. Department for Communities and Social Inclusion

7. Department for Correctional Services

8. Department for Education and Child Development

9. Department for Health and Ageing

10. Department of Environment, Water and Natural Resources

11. Department of Planning, Transport and Infrastructure

12. Department of Primary Industries and Regions

13. Department of State Development

14. Department of the Premier and Cabinet

15. Department of Treasury and Finance

16. Electoral Commission of South Australia

17. Environment Protection Authority

18. Independent Gambling Authority

19. Parliament of South Australia

20. SA Tourism Commission

21. SAFECOM

22. South Australia Police

23. South Australian Metropolitan Fire Service

24. State Emergency Service

25. State Procurement Board

26. TAFE SA

Note: For the entities listed for South Australia, Chapter 15 (Government Procurement) shall not cover the procurement of health and welfare services, education services, advertising services or motor vehicles.

Tasmania

1. Department of Education

2. Department of Health and Human Services

3. Department of Justice

4. Department of Police and Emergency Management

5. Department of Premier and Cabinet

6. Department of Primary Industries, Parks, Water and Environment 7. Department of State Growth

8. Department of Treasury and Finance

9. House of Assembly

10. Legislative Council

11. Legislature-General

12. Office of the Governor

13. Tasmanian Audit Office

14. Tasmanian Health Service

15. Office of the Ombudsman

16. Office of the Director of Public Prosecutions

17. Tourism Tasmania

Note: For the entities listed for Tasmania, Chapter 15 (Government Procurement) shall not cover the procurement of health and welfare services, education services, or advertising services.

Victoria

1. Commission for Children and Young People

2. Department of Economic Development, Jobs, Transport and Resources 3. Department of Education and Training

4. Department of Environment, Land, Water and Planning

5. Department of Health and Human Services

6. Department of Justice and Regulation

7. Department of Premier and Cabinet

8. Department of Treasury and Finance

9. Essential Services Commission

10. Game Management Authority

11. Independent Broad-Based Anti-corruption Commission

12. Office of Public Prosecutions

13. Office of the Chief Commissioner of Police (Victoria Police)

14. Office of the Commissioner for Environmental Sustainability

15. Office of the Fire Services Levy Monitor

16. Office of the Freedom of Information Commissioner

17. Office of the Legal Services Commissioner

18. Office of the Ombudsman

19. Office of the Privacy Commissioner

20. Office of the Road Safety Camera Commissioner

21. Office of the Victorian Inspectorate

22. Taxi Services Commission

23. Victorian Auditor-General's Office

24. Victorian Commission for Gambling and Liquor Regulation

25. Victorian Electoral Commission

26. Victorian Equal Opportunity and Human Rights Commission

27. Victorian Public Sector Commission

28. Victorian Responsible Gambling Foundation

Note:

1. For the entities listed for Victoria, Chapter 15 (Government Procurement) shall not cover the procurement of motor vehicles.

2. For the entities listed for Victoria, Chapter 15 (Government Procurement) shall not apply to procurement by covered entities on behalf of non-covered entities.

Western Australia

1. Botanic Gardens and Parks Authority

2. Corruption and Crime Commission (Western Australia)

3. Country High Schools Hostels Authority

4. Department of Aboriginal Affairs

5. Department of Agriculture and Food

6. Department of Child Protection and Family Support

7. Department of Commerce

8. Department of Corrective Services

9. Department of Culture and the Arts

10. Department of Education

11. Department of Education Services

12. Department of Environment Regulation

13. Department of Fire and Emergency Services

14. Department of Finance

15. Department of Fisheries

16. Department of Health

17. Department of Lands

18. Department of Local Government and Communities

19. Department of Mines and Petroleum

20. Department of Parks and Wildlife

21. Department of Planning

22. Department of Racing, Gaming and Liquor

23. Department of Regional Development

24. Department of Sport and Recreation

25. Department of State Development

26. Department of Training and Workforce Development

27. Department of Treasury

28. Department of Water

29. Department of the Attorney General

30. Department of the Premier and Cabinet

31. Department of the Registrar Western Australia Industrial Relations Commission 32. Disability Services Commission

33. Equal Opportunity Commission

34. Gascoyne Development Commission

35. Goldfields Esperance Development Commission

36. Governor's Establishment

37. Great Southern Development Commission

38. Heritage Council of Western Australia

39. Housing Authority

40. Kimberley Development Commission

41. Law Reform Commission of Western Australia

42. Legislative Assembly

43. Legislative Council

44. Main Roads Western Australia

45. Mid West Development Commission

46. Minerals and Energy Research Institute of Western Australia 47. National Trust of Australia (WA)

48. Office of the Auditor General

49. Office of the Director of Public Prosecutions

50. Office of the Information Commissioner

51. Office of the Inspector of Custodial Services

52. Office of the Parliamentary Commissioner for Administrative Investigations

53. Parliamentary Services Department

54. Peel Development Commission

55. Pilbara Development Commission

56. Public Sector Commission

57. Public Transport Authority

58. Rottnest Island Authority

59. Rural Business Development Corporation

60. Salaries and Allowances Tribunal

61. School Curriculum and Standards Authority

62. Small Business Development Corporation

63. South West Development Commission

64. State Library of Western Australia

65. Swan River Trust

66. Western Australia Police

67. Western Australian Electoral Commission

68. Western Australian Land Information Authority (Landgate)

69. Western Australian Planning Commission

70. Western Australian Sports Centre Trust (trading as VenuesWest) 71. Western Australian Tourism Commission

72. Wheatbelt Development Commission

73. Zoological Parks Authority

Note: For greater certainty, consistent with Article 15.9.9 (Qualification of Suppliers), in relation to procurements from the Department of Finance, Building Management and Works' Prequalification Scheme; and Main Road's ‘National Prequalification System for Civil (Road and Bridge) Construction Contracts' Scheme, requests for participation in a procurement from suppliers not already prequalified at the time of tender release will not be considered due to the time and complexity involved in assessing requests. This does not preclude suppliers from applying at any time to become prequalified. Prequalification ensures the financial security of building and construction contractors and does not discriminate between local suppliers and the suppliers of other Parties.

Notes to Section B

For entities listed in this Section:

1. Australia offers coverage of sub-central entities listed in this Section only to Canada, Chile, Japan, Mexico and Peru. Australia is prepared to extend coverage of this Section to other Parties upon negotiation of mutually acceptable concessions.

2. A service listed in Section E (Services) is covered with respect to Canada and Mexico only to the extent that Party has covered that service in their Schedule.

3. In relation to multi-use lists:

(a) a notice inviting suppliers to apply for inclusion on a multi-use list may be used as a notice of intended procurement, provided a statement is included that only suppliers on the multi-use list will receive further notices of procurement covered by the multi-use list; and

(b) where all or a limited number of qualified suppliers have been selected, the time period for tendering may be fixed by mutual agreement between the procuring entity and the selected suppliers. In the absence of agreement, the period shall not be less than 10 days.

4. For Mexico, Australia may set aside from the obligations of Chapter 15 (Government Procurement) each fiscal year following the date of entry into force of this Agreement the respective percentage specified in paragraph 5 the total value of procurement contracts for goods and services, and any combination thereof, and construction services procured by the States and Territories in the year that are above thresholds set out in this Section.

5. The percentages referred to in paragraph 4 are as follows:

SECTION C: Other Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to other covered entities listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2.8 (Scope), to equal or exceed:

(a) for procurement of goods and services, 400,000 SDR

(b) for procurement of construction services, 5,000,000 SDR

2. The monetary thresholds set out in paragraphs 1(a) and 1(b) shall be adjusted in accordance with Section H of this Schedule.

List of Entities:

1. Australian Communications and Media Authority

2. Australian Competition and Consumer Commission

3. Australian Financial Security Authority

4. Australian Fisheries Management Authority

5. Australian Human Rights Commission

6. Australian Institute of Health and Welfare

7. Australian Institute of Marine Science

8. Australian Maritime Safety Authority

9. Australian National Maritime Museum

10. Australian Nuclear Science and Technology Organisation

11. Australian Pesticides and Veterinary Medicines Authority

12. Australian Prudential Regulation Authority

13. Australian Securities and Investments Commission

14. Australian War Memorial (Note 3)

15. Comcare

16. Commonwealth Scientific and Industrial Research Organisation

17. Export Finance and Insurance Corporation

18. Grains Research and Development Corporation

19. Great Barrier Reef Marine Park Authority

20. National Gallery of Australia

21. National Museum of Australia

22. Reserve Bank of Australia

23. Sydney Harbour Federation Trust

24. The Director of National Parks

25. Tourism Australia

Notes to Section C

1. Chapter 15 (Government Procurement) shall cover only those entities listed in this Section.

2. For the entities listed in this Section, Chapter 15 (Government Procurement) shall not cover the procurement of motor vehicles.

3. Chapter 15 (Government Procurement) shall not cover procurement of telecommunications services by the Australian War Memorial.

SECTION D: Goods

1. Chapter 15 (Government Procurement) shall apply to all goods procured by the entities listed in Sections A, B and C, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

2. Chapter 15 (Government Procurement) shall not cover the procurement of blood and blood-related products, including plasma derived products.

SECTION E: Services

Chapter 15 (Government Procurement) shall apply to all services procured by the entities listed in Sections A, B and C, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

Chapter 15 (Government Procurement) shall not cover the procurement of:

(a) plasma fractionation services;

(b) government advertising services;

(d) research and development services.

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall apply to all construction services procured by the entities listed in Sections A, B and C, unless otherwise specified in Chapter 15 (Government Procurement), including in this Schedule.

SECTION G: General Notes

Unless otherwise specified herein, the following General Notes in Australia's Schedule shall apply without exception to Chapter 15 (Government Procurement), including to all Sections of this Schedule.

1. Chapter 15 (Government Procurement) shall not apply to:

(a) any form of preference to benefit small and medium enterprises;

(b) measures to protect national treasures of artistic, historic, or archaeological value;

(d) measures for the economic and social advancement of indigenous people. 2. For greater certainty:

(a) Chapter 15 (Government Procurement) shall not apply to procurement funded by grants and sponsorship payments received from persons not listed in this Annex;

(b) Chapter 15 (Government Procurement) shall not apply to procurement by a procuring entity from another government entity; and

(c) a procuring entity may use limited tendering procedures for unsolicited innovative proposals under Article 15.10.2(g) (Limited Tendering).

SECTION H: Threshold Adjustment Formula

1. The thresholds shall be adjusted in every even-numbered year with each adjustment taking effect on January 1, beginning on January 1 of the first even numbered year after the date of entry into force of this Agreement for Australia.

2. Every two years, Australia shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Australian dollars. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Australian dollar in terms of the Special Drawing Rights (SDR) over the two-year period preceding October 1 or November 1 of the year before the adjusted thresholds are to take effect, and rounded to the nearest thousand Australian dollars.

4. Australia shall notify the other Parties of the current thresholds in its currency immediately after this Agreement enters into force, and the adjusted thresholds in its currency thereafter in a timely manner.

5. Australia shall consult if a major change in its national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurement is published on the following websites: Legislation and Regulations: http://www.comlaw.gov.au/

Australian Government Tender System: https://www.tenders.gov.au/

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF BRUNEI DARUSSALAM

SECTION A: Central Government Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the Central Government Entities listed in this Section where the value of procurement is estimated to equal or exceed the following thresholds:

List of Entities:

1. Prime Minister's Office

(a) Audit Department

(b) Anti-Corruption Bureau

(d) Councils of State

(e) Civil Service Institute

(f) Department of Economic Planning and Development

(g) E-Government National Centre

(h) Government Printing

(i) Internal Security

(j) Information

(k) Management Services

(l) Narcotics Control Bureau

(m) Public Service Department

(n) Public Service Commission

(o) Radio Television Brunei

(p) Royal Customs and Traditions

(q) Royal Brunei Police Force

(r) State Mufti

(s) State Judiciary

(t) Department of Electrical Services

(u) Energy Department

(v) Brunei Research Department

(w) Brunei Industry Development Authority (BINA)

2. Ministry of Defence

(a) Directorate of Administration and Manpower

(b) Directorate of Finance and Acquisition

(d) Directorate of Operations

(e) Directorate of Personnel

(f) Directorate of Logistics

(g) Directorate of Defence Policy

(h) Royal Brunei Armed Forces

(i) Directorate of Intelligence

(j) Directorate of Force Capability Development

(k) Sultan Haji Hassanal Bolkiah Institute of Defence and Strategic Studies (l) The Centre of Science And Technology Research And Development (CSTRAD)

(m) Office Strategy Management

(n) Technical Equipment Maintenance Division

(o) Calibration Centre

(p) Royal Brunei Armed Forces Religious Department

3. Ministry of Finance

(a) Supply and State Stores Department

(b) Royal Custom and Excise Department

(d) His Majesty Sultan's Flight Department

4. Ministry of Foreign Affairs and Trade

(a) Administration Department

(b) Information and Communication Department

(d) Policy Planning Department

(e) Politics I Department

(f) Politics II Department

(g) ASEAN Department

(h) International Organisation Department

(i) Economic Cooperation Department

(j) Trade Development

(k) International Trade Department

(l) Security Department

5. Ministry of Education

(a) Department of Administration and Services

(b) Planning and Estate Management Department

(d) Department of Schools Inspectorate

(e) Curriculum Development Department

(f) Examinations Department

(g) Department of Planning, Development and Research

(h) Department of Information and Communication Technology (i) Department of Co-Curricular Education

(j) Department of Technical Education

(k) University Brunei Darussalam

(l) Sultan Sharif Ali Islamic University

(m) Brunei Institute of Technology

(n) Department of Human Resources Development

6. Ministry of Health

(a) Finance and Administration Department

(b) Policy and Planning Department

(d) Department of Health Services

(e) Department of Medical Services

(f) Estate Management Department

7. Ministry of Development

(a) Public Works Department

(b) Town and Country Planning Department

(d) Survey Department

(e) Housing Development Department

(f) Environment, Parks and Recreation Department

8. Ministry of Communications

(a) Marine Department

(b) Ports Department

(d) Land Transport Department

(e) Department of Postal Services

(f) Brunei Darussalam Meteorological Department

9. Ministry of Primary Resources and Tourism

(a) Agriculture and Agrifood Department

(b) Forestry Department

(d) Tourism Development Department

10. Ministry of Religious Affairs

(a) Administration Department

(b) Islamic Religious Council Office

(d) Haj Department

(e) Department of Mosques Affairs

(f) Department of Islamic Studies

(g) Islamic Dakwah Centre

(h) Religious Office Belait District

(i) Religious Office Tutong District

(j) Religious Office Temburong District

(k) Institute Tahfiz Al Quran Sultan Haji Hassanal Bolkiah

(l) University College Religious Teachers' Seri Begawan

(m) Islamic Legal Unit

11. Ministry of Home Affairs

(a) Brunei/Muara District Office

(b) Tutong District Office

(d) Temburong District Office

(e) Bandar Seri Begawan Municipal Board

(f) Tutong Municipal Board

(g) Kuala Belait and Seria Municipal Board

(h) Immigration and National Registration Department (i) Labour Department

(j) Prison Department

(k) Fire and Rescue Department

(l) National Disaster Management Centre

12. Ministry of Culture Youth and Sports

(a) Brunei Darussalam History Centre

(b) Youth and Sports Department

(d) Community Development Department

(e) Language and Literature Bureau

Note to Section A

All agencies subordinate to the above listed entities are covered. ANNEX 15-A – BRUNEI DARUSSALAM – 4

SECTION B: Sub-Central Government Entities

Not applicable for Brunei Darussalam as Brunei Darussalam does not have any sub central government entities.

SECTION C: Other Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the other entities listed in this Section where the value of procurement is estimated to equal or exceed the following thresholds:

List of Entities:

1. Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam) 2. Employee Trust Fund (Tabung Amanah Pekerja)

Note to Section C

Chapter 15 (Government Procurement) shall not apply to any procurement by or on behalf of Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam) of direct inputs for the use in minting of Brunei Darussalam coins.

SECTION D: Goods

Chapter 15 (Government Procurement) shall apply to all goods procured by entities listed in Sections A and C, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

SECTION E: Services

Chapter 15 (Government Procurement) shall apply to all services procured by entities listed in Sections A and C, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall apply to all construction services procured by entities listed in Sections A and C, unless otherwise specified in Chapter 15 (Government Procurement), including in this Schedule.

SECTION G: General Notes

For greater certainty, Chapter 15 (Government Procurement) shall not apply to:

(a) any procurement by the office of Nurul Iman's Palace (Istana Nurul Iman);

(b) any procurement made by a covered entity on behalf of a non-covered entity; and

(c) any government procurement measures to benefit small and medium enterprises, that are applied in a manner consistent with obligations in Chapter 15 (Government Procurement) with respect to the covered procurement set out in this Schedule.

SECTION H: Threshold Adjustment Formula

1. The thresholds shall be adjusted in every even-numbered year with each adjustment taking effect on January 1, beginning on January 1 of the first even-numbered year after the date of entry into force of this Agreement for Brunei Darussalam.

2. Every two years, Brunei Darussalam shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Brunei Dollar. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Brunei Dollar in terms of the Special Drawing Rights (SDRs) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect, and rounded to the nearest Brunei Dollar.

4. Brunei Darussalam shall notify the other Parties of the current thresholds in its respective currency immediately after the date of entry into force of this Agreement, and the adjusted thresholds in its respective currency thereafter in a timely manner.

5. Brunei Darussalam shall consult if a major change in its national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurement is published on the following websites: Rules and Regulations: http://www.mof.gov.bn/index.php/tender-process Notices of intended procurement: http://www.pelitabrunei.gov.bn/iklan/tawaran

SECTION J: Transitional Measures

1. Notwithstanding the requirement in Article 15.7.3(b) and (i) (Notices of Intended Procurement) that specified information must be included in the notice of intended procurement, Brunei Darussalam may omit from its notices of intended procurement the information required in Article 15.7.3(b) and (i) (Notices of Intended Procurement) for three years after the date of entry into force of this Agreement. During this transitional period, Brunei Darussalam shall provide the information required in Article 15.7.3(b) (Notices of Intended Procurement) in its tender documentation, provided that it complies with Article 15.4 (General Principles).

2. Notwithstanding the requirement in Article 15.16.3 (Post-Award Information) that the procuring entity publish a notice of the award of a contract, Brunei Darussalam may delay application of this requirement for three years after the date of entry into force of this Agreement. During this transitional period, Brunei Darussalam shall provide information, upon request of suppliers of other Parties, with respect to its contract awards.

3. Notwithstanding Article 15.19 (Domestic Review), Brunei Darussalam may delay application of its obligations under Article 15.19 (Domestic Review) for five years after the date of entry into force of this Agreement. During this transitional period, Brunei Darussalam shall allow suppliers of other Parties to take complaints about the conduct of a covered procurement to the procuring entity, provided that it complies with Article 15.4 (General Principles).

4. Notwithstanding the requirements in Article 15.7.1 (Notices of Intended Procurement), Article 15.9.3 (Qualification of Suppliers), and Article 15.14.2 (Time Periods), Brunei Darussalam may delay implementation of the requirements to publish a notice of intended procurement where it uses a multi-use list for the procurement of certain services, for three years after the date of entry into force of this Agreement. During this transitional period, Brunei Darussalam shall:

(a) notify all suppliers on the relevant multi-use list of procurement opportunities;

(b) establish that the final date for submission of requests for participation in Article 15.14.2 (Time Periods) shall be from the date of such notification; and

(c) provide an electronic link to procuring entities' multi-use lists via the Ministry of Finance website at www.mof.gov.bn, provided that it complies with Article 15.4 (General Principles).

5. Transitional thresholds are applied as provided for in Sections A and C.

ANNEX 15-A

SCHEDULE OF CANADA

SECTION A: Central Government Entities

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by entities listed in this Section, subject to the following thresholds:

Thresholds:

130,000 SDRs Goods

130,000 SDRs Services

5,000,000 SDRs Construction Services

List of Entities:

1. Atlantic Canada Opportunities Agency

2. Canada Border Services Agency

3. Canada Emission Reduction Incentives Agency

4. Canada Employment Insurance Commission

5. Canada Industrial Relations Board

6. Canada Revenue Agency

7. Canada School of Public Service

8. Canadian Centre for Occupational Health and Safety

9. Canadian Environmental Assessment Agency

10. Canadian Food Inspection Agency

11. Canadian Grain Commission

12. Canadian Human Rights Commission

13. Canadian Human Rights Tribunal

14. Canadian Institutes of Health Research

15. Canadian Intergovernmental Conference Secretariat

16. Canadian International Trade Tribunal

17. Canadian Northern Economic Development Agency

18. Canadian Nuclear Safety Commission

19. Canadian Polar Commission

20. Canadian Radio-television and Telecommunications Commission

21. Canadian Transportation Accident Investigation and Safety Board

22. Canadian Transportation Agency

23. Copyright Board

24. Correctional Service of Canada

25. Courts Administration Service

26. Department of Agriculture and Agri-Food

27. Department of Canadian Heritage

28. Department of Citizenship and Immigration

29. Department of Employment and Social Development 30. Department of Finance

31. Department of Fisheries and Oceans

32. Department of Foreign Affairs, Trade and Development 33. Department of Health

34. Department of Indian Affairs and Northern Development 35. Department of Industry

36. Department of Justice

37. Department of National Defence

38. Department of Natural Resources

39. Department of Public Safety and Emergency Preparedness 40. Department of Public Works and Government Services 41. Department of the Environment

42. Department of Transport

43. Department of Veterans Affairs

44. Department of Western Economic Diversification

45. Director of Soldier Settlement

46. Director, The Veterans' Land Act

47. Economic Development Agency of Canada for the Regions of Quebec

48. Federal Economic Development Agency for Southern Ontario

49. Financial Consumer Agency of Canada

50. Immigration and Refugee Board

51. Indian Residential Schools Truth and Reconciliation Commission

52. Library and Archives of Canada

53. Military Grievances External Review Committee

54. Military Police Complaints Commission

55. National Battlefields Commission

56. National Energy Board

57. National Farm Products Council

58. National Film Board

59. National Research Council of Canada

60. Natural Sciences and Engineering Research Council 61. Northern Pipeline Agency

62. Office of Infrastructure of Canada

63. Office of the Auditor General

64. Office of the Chief Electoral Officer

65. Office of the Commissioner for Federal Judicial Affairs

66. Office of the Commissioner of Lobbying

67. Office of the Commissioner of Official Languages

68. Office of the Coordinator, Status of Women

69. Office of the Correctional Investigator of Canada

70. Office of the Director of Public Prosecutions

71. Office of the Governor General's Secretary

72. Office of the Public Sector Integrity Commissioner

73. Office of the Registrar of the Supreme Court of Canada

74. Office of the Superintendent of Financial Institutions

75. Offices of the Information and Privacy Commissioners of Canada

76. Parks Canada Agency

77. Parole Board of Canada

78. Patented Medicine Prices Review Board

79. Privy Council Office

80. Public Health Agency of Canada

81. Public Service Commission

82. Public Service Labour Relations and Employment Board

83. Registry of the Competition Tribunal

84. Registry of the Public Servants Disclosure Protection Tribunal

85. Registry of the Specific Claims Tribunal

86. Royal Canadian Mounted Police

87. Royal Canadian Mounted Police External Review Committee

88. Royal Canadian Mounted Police Public Complaints Commission

89. Security Intelligence Review Committee

90. Shared Services Canada

91. Social Sciences and Humanities Research Council

92. Statistics Canada

93. Transportation Appeal Tribunal of Canada

94. Treasury Board of Canada Secretariat

95. Veterans Review and Appeal Board

Note to Section A

No entity listed in this Section has the power to create subordinate entities.

SECTION B: Sub-Central Government Entities

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by entities listed in this Section, subject to the following thresholds:

Thresholds:

355,000 SDRs Goods

355,000 SDRs Services

5,000,000 SDRs Construction Services

List of Entities:

*†ALBERTA

All Ministries and Agencies (All Government Departments and Provincial Agencies, Boards, Councils, Committees and Commissions) of the Province.

This Section does not include:

1. Legislative Assembly

2. Legislative Assembly Office

3. Office of the Auditor General

4. Office of the Chief Electoral Officer

5. Office of the Ethics Commissioner

6. Office of the Information and Privacy Commissioner

7. Office of the Ombudsman

*†BRITISH COLUMBIA

All Ministries, Boards, Commissions, Agencies and Committees of the Province. This Section does not include the Legislative Assembly.

†MANITOBA

All Departments, Boards, Commissions and Committees of the Province.

†NEW BRUNSWICK

The following provincial entities are included:

1. Chief Electoral Officer

2. Clerk of the Legislative Assembly

3. Department of Agriculture, Aquaculture and Fisheries

4. Department of Business New Brunswick

5. Department of Education and Early Childhood Development

6. Department of Energy and Mines

7. Department of Environment and Local Government

8. Department of Finance

9. Department of Health

10. Department of Justice

11. Department of Natural Resources

12. Department of Post-Secondary Education, Training and Labour

13. Department of Public Safety

14. Department of Social Development

15. Department of Government Services

16. Department of Tourism, Heritage and Culture

17. Department of Transportations and Infrastructure

18. Executive Council Office

19. Labour and Employment Board

20. Language Training Centre

21. New Brunswick Police Commission

22. Office of Human Resources

23. Office of the Attorney General

24. Office of the Auditor General

25. Office of the Comptroller

26. Office of the Leader of the Opposition

27. Office of the Lieutenant-Governor

28. Office of the Ombudsman

29. Office of the Premier

This Section does not cover procurement of sand, stone, gravel, asphalt compound and pre-mixed concrete for use in the construction or repair of roads.

†NEWFOUNDLAND AND LABRADOR

All Departments of the Province.

†NORTHWEST TERRITORIES

All Departments and Agencies of the Territory.

This Section does not cover procurement subject to the Northwest Territories Business Incentive Policy

*†NOVA SCOTIA

This Section applies to all Departments and Offices of the Province established under the Public Service Act, except for the following entities and circumstances:

1. Emergency Health Services (a subdivision of the Department of Health and Wellness) in respect to ambulance-related procurement, including telecommunications, for emergency health care purposes;

2. The Information, Communications and Technology Services Branch of the Department of Internal Services and the Chief Information Office of the Department of Health and Wellness;

3. Any measure Nova Scotia adopts or maintains with respect to culture or cultural industries; and

4. Procurement of FSC 58 (communications, detection and coherent radiation equipment).

†NUNAVUT

All Departments and Agencies of the Territory.

This Section does not cover procurement subject to the Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) nor those contracts within the terms of Article 24 of the Nunavut Land Claims Agreement.

ONTARIO

All Ministries of the Province.

The following Agencies are included:

1. AgriCorp

2. Centennial Centre of Science and Technology (Ontario Science Centre)

3. Deposit Insurance Corporation of Ontario

4. Metropolitan Convention Centre Corporation

5. Niagara Parks Commission

6. Ontario Clean Water Agency

7. Ontario Financial Services Commission

8. Ontario Immigrant Investor Corporation

9. Ontario Mortgage and Housing Corporation

10. Ontario Mortgage Corporation

11. Ontario Northland Transportation Commission

12. Ontario Tourism Marketing Partnership Corporation

13. Ottawa Congress Centre

14. Science North

*†PRINCE EDWARD ISLAND

All Departments of the Province.

This Section does not cover procurement of construction materials that are used for highway construction and maintenance.

*QUÉBEC

All departments of the Province and the governmental agencies set out in subparagraph (2) of the first paragraph of section 4 of the Act Respecting Contracting by Public Bodies (Chapter C-65.1).

The following entities are also included:

1. Agence du revenu du Québec (Québec Revenue Agency)

2. Institut national d'excellence en santé et en services sociaux (National Institute for Excellence in Health and Social Services) This Section does not cover procurement:

(a) of cultural or artistic goods and services;

(b) of seedling production services;

(c) for work to be performed on property by a contractor according to provisions of a warranty or guarantee held in respect of the property or the original work;

(d) of construction-grade steel (including requirements on subcontracts); and (e) from a non-profit organization.

Chapter 15 (Government Procurement) shall not apply to any measure of Québec adopted or maintained with respect to culture or cultural industries.

*†SASKATCHEWAN

All Ministries of the Province.

The following Boards and Agencies are covered:

1. Public Employee Benefits Agency

2. Saskatchewan Archives Board

3. Saskatchewan Arts Board

This Section does not include Legislative Branch Entities.

*†YUKON

The following Departments of the Territory are covered:

1. Department of Community Services

2. Department of Economic Development

3. Department of Education

4. Department of Energy, Mines and Resources

5. Department of Environment

6. Department of Finance

7. Department of Health and Social Services

8. Department of Highways and Public Works

9. Department of Justice

10. Department of Tourism and Culture

11. Executive Council Office

12. Public Service Commission

The following Agencies are included.

1. French Language Services Directorate

2. Women's Directorate

3. Yukon Worker's Compensation Health and Safety Board

Notes to Section B

1. For provinces and territories listed in this Section, Chapter 15 (Government Procurement) shall not apply to preferences or restrictions on highway projects.

2. For provinces and territories listed in this Section, Chapter 15 (Government Procurement) shall not apply to preferences or restrictions associated with programmes promoting the development of distressed areas.

3. Chapter 15 (Government Procurement) shall not cover procurement that is intended to contribute to economic development within the provinces of Manitoba, Newfoundland and Labrador, New Brunswick, Prince Edward Island and Nova Scotia or the territories of Nunavut, Yukon or Northwest Territories.

4. For those provinces and territories marked by an asterisk (*), Chapter 15 (Government Procurement) shall not cover procurement:

(a) of goods purchased for representational or promotional purposes; or

(b) of services or construction services purchased for representational or promotional purposes outside the province or territory.

5. For those provinces and territories marked by an obelisk (†), Chapter 15 (Government Procurement) shall not cover the procurement of goods, services or construction services purchased for the benefit of, or which is to be transferred to the authority of, school boards or their functional equivalents, publicly-funded academic institutions, social services entities or hospitals.

6. Chapter 15 (Government Procurement) shall not include Crown Corporations of the provinces　and territories.

7. For provinces and territories listed in Section B, Chapter 15 (Government Procurement) shall not cover procurement of urban rail and urban transportation equipment, systems, components and materials incorporated therein as well as all project related materials of iron or steel.

8. For Malaysia, Mexico, United States and Viet Nam, Chapter 15 (Government Procurement) shall not apply to procurement by entities listed in Section B. Canada is prepared to extend coverage of Section B upon the negotiation of mutually acceptable concessions.

SECTION C: Other Entities

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by the entities listed in this Section, subject to the following thresholds.

Thresholds:

355,000 SDRs Goods

355,000 SDRs Services

5,000,000 SDRs Construction Services

List of Other Entities:

1. Atlantic Pilotage Authority

2. Blue Water Bridge Authority

3. Canada Development Investment Corporation

4. Canada Lands Company Limited

5. Canada Post Corporation

6. Canadian Museum for Human Rights

7. Canadian Museum of History

8. Canadian Museum of Nature

9. Canadian Museum of Immigration at Pier 21

10. Canadian Tourism Commission

11. Defence Construction (1951) Ltd.

12. Federal Bridge Corporation Limited

13. Great Lakes Pilotage Authority

14. Laurentian Pilotage Authority

15. Marine Atlantic Inc.

16. National Capital Commission

17. National Gallery of Canada

18. National Museum of Science and Technology

19. Pacific Pilotage Authority

20. PPP Canada Inc.

21. Royal Canadian Mint

22. Via Rail Canada Inc.

Notes to Section C

1. Chapter 15 (Government Procurement) shall not cover procurement by or on behalf of the Royal Canadian Mint of direct inputs for use in minting anything other than Canada legal tender.

2. Chapter 15 (Government Procurement) shall not cover procurement by the Canada Lands Company Limited or its subsidiaries for the development of real property for commercial sale or resale.

3. Chapter 15 (Government Procurement) shall not cover leasing or rental of transportation equipment by or on behalf of Canada Post Corporation, Marine Atlantic Inc., or any pilotage authority.

SECTION D: Goods

1. Unless otherwise specified and subject to paragraph 2, Chapter 15 (Government Procurement) shall cover all goods.

2. Subject to the application of Article 29.2 (Security Exceptions) with respect to procurement by the Department of National Defence, the Royal Canadian Mounted Police, the Department of Fisheries and Oceans for the Canadian Coast Guard, and provincial police forces, Chapter 15 (Government Procurement) shall cover only the goods described in the Federal Supply Classifications (FSC) listed below:

SECTION E: Services

1. Unless otherwise specified, Chapter 15 (Government Procurement) shall cover the services specified in paragraphs 2 and 3. Such services are identified in accordance with the United Nations Provisional Central Product Classification (CPC Prov.) which is found at: http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=9&Lg=1. For purposes of implementation of Chapter 15 (Government Procurement), Canada reserves the right to use a classification system of its choosing.

2. Chapter 15 (Government Procurement) shall cover the following services procured by central government entities listed in Section A and other entities listed in Section C:

3. Chapter 15 (Government Procurement) shall cover the following services procured by central government entities listed in Section A, sub-central government entities listed in Section B, and other entities listed in Section C:

Notes to Section E

1. Chapter 15 (Government Procurement) shall not cover procurement of the following:

(a) Services for the management and operation of government facilities or privately owned facilities used for government purposes, including federally funded research and development;

(b) Public utilities services;

(d) Services, with reference to those goods purchased by the Department of National Defence, the Royal Canadian Mounted Police, the Department of Fisheries and Oceans for the Canadian Coast Guard and provincial police forces which are not covered by Chapter 15 (Government Procurement);

(e) Services procured in support of military forces located overseas; and (f) Services related to culture or cultural industries.

2. The coverage of any service listed in this Section that is provided by or from an aircraft is covered with respect to a particular Party only to the extent that such Party provides effective market access for such service in its territory.

SECTION F: Construction Services

1. Unless otherwise specified and subject to paragraph 2, Chapter 15 (Government Procurement) shall cover all construction services identified in Division 51 of the United Nations Provisional Central Product Classification (CPC Prov.) .

2. Chapter 15 (Government Procurement) shall not cover procurement of the following:

(a) dredging services; and

(b) construction services procured by or on behalf of the federal Department of Transport.

SECTION G: General Notes

Unless otherwise specified, the following General Notes shall apply to Chapter 15 (Government Procurement), including to Sections A through F.

1. Chapter 15 (Government Procurement) shall not cover procurement in respect of:

(a) shipbuilding and repair, including related architectural and engineering services;

(b) agricultural goods made in furtherance of agricultural support programmes or human feeding programmes;

(d) an international crossing between Canada and another country, including the design, construction, operation or maintenance of the crossing as well as any related infrastructure.

2. Chapter 15 (Government Procurement) shall not cover procurement by a procuring entity from another government entity.

3. Chapter 15 (Government Procurement) shall not apply to:

(a) any form of preference, including set asides, to benefit micro, small and medium enterprises; and

(b) any measure adopted or maintained with respect to Aboriginal peoples, nor to set asides for aboriginal businesses; existing aboriginal or treaty rights of any of the Aboriginal peoples of Canada protected by section 35 of the Constitution Act, 1982 are not affected by Chapter 15 (Government Procurement).

4. For greater certainty, Chapter 15 (Government Procurement) shall be interpreted in accordance with the following:

(a) The procurement process is the process that begins after a procuring entity has decided on its requirement and continues through to and including contract award;

(b) Where a contract to be awarded by a procuring entity is not covered by Chapter 15 (Government Procurement), Chapter 15 (Government Procurement) shall not be construed to cover any good or service component of that contract;

(c) Any exclusion that is related either specifically or generally to a procuring entity will also apply to any successor entity in such a manner as to maintain the value of this offer;

(d) For the purpose of the definition of build-operate-transfer contract and public works concession contract, a "contractual arrangement" means a contract;

(e) Services covered by Chapter 15 (Government Procurement) are subject to Canada's exclusions from and reservations to Chapter 10 (Cross-Border Trade in Services), Chapter 9 (Investment) and Chapter 11 (Financial Services);

(f) For the purposes of Article 15.12.7 (Technical Specifications), "government information" includes third party information held by or on behalf of the government and "sensitive" information includes confidential, classified or otherwise protected information; and

(g) Chapter 15 (Government Procurement) shall not cover procurement by a procuring entity on behalf of another entity where the procurement would not be covered by Chapter 15 (Government Procurement) if it were conducted by the other entity itself.

SECTION H: Threshold Adjustment Formula

2. Every two years, Canada shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Canadian dollars. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Canadian dollar in terms of the Special Drawing Rights (SDR) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect.

4. Canada shall consult if a major change in its national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurements is published on the following websites. Legislation and Regulations: http://laws-lois.justice.gc.ca

Canadian Government Tender System: https://buyandsell.gc.ca/

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF CHILE

SECTION A: Central Government Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to procurement by the Central Level of Government Entities listed in this Section where the value of the procurement is estimated, in accordance with Section H (Threshold Adjustment Formula), to equal or exceed the following relevant threshold:

(a) for procurement of goods and services 95,000 SDRs (b) for procurement of construction services 5,000,000 SDRs

2. The monetary thresholds set out in paragraph 1 shall be adjusted in accordance with Section H (Threshold Adjustment Formula) of this Schedule.

List of Entities:

1. Ejecutivo (Executive)

(a) Presidencia de la República (Office of the President of the Republic)

(b) Ministerio del Interior y Seguridad Pública (Ministry of Interior and Public Security)

(c) Ministerio de Relaciones Exteriores (Ministry of Foreign Affairs) (d) Ministerio de Defensa Nacional (Ministry of National Defense)

(e) Ministerio de Hacienda (Ministry of Finance)

(f) Ministerio Secretaría General de la Presidencia (Ministry of the General Secretariat of the President's Office)

(g) Ministerio Secretaría General de Gobierno (Ministry of the General Secretariat of Government)

(h) Ministerio de Economía, Fomento y Turismo (Ministry of Economy, Development and Tourism)

(i) Ministerio de Minería (Ministry of Mining)

(j) Ministerio de Energía (Ministry of Energy)

(k) Ministerio de Desarrollo Social (Ministry of Social Development) (l) Ministerio de Educación (Ministry of Education)

(m) Ministerio de Justicia (Ministry of Justice)

(n) Ministerio del Trabajo y Previsión Social (Ministry of Labor and Social Welfare)

(o) Ministerio de Obras Públicas (Ministry of Public Works)

(p) Ministerio de Transportes y Telecomunicaciones (Ministry of Transport and Telecommunications)

(q) Ministerio de Salud (Ministry of Health)

(r) Ministerio de Vivienda y Urbanismo (Ministry of Housing and Urban Development)

(s) Ministerio de Bienes Nacionales (Ministry of National Assets)

(t) Ministerio de Agricultura (Ministry of Agriculture)

(u) Ministerio del Medio Ambiente (Ministry of Environment)

(v) Ministerio del Deporte (Ministry of Sport)

(w) Servicio Nacional de la Mujer (National Women's Service)

(x) Consejo Nacional de la Cultura y las Artes (National Council for Culture and the Arts)

Note to Section A

Unless otherwise specified within this Section, all agencies subordinate to those listed are covered by this Agreement.

SECTION B: Sub-Central Government Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to procurement by the Sub-Central Level of Government Entities listed in this Section where the value of the procurement is estimated, in accordance with Section H (Threshold Adjustment Formula), to equal or exceed the following relevant threshold:

(a) for procurement of goods and services 200,000 SDRs

(b) for procurement of construction services 5,000,000 SDRs

2. The monetary thresholds set out in paragraph 1 shall be adjusted in accordance with Section H (Threshold Adjustment Formula) of this Schedule.

List of Entities:

1. Gobiernos Regionales (Regional Governments)

(a) Intendencia Región de Arica y Parinacota (Intendancy of Arica y Parinacota Region)

(b) Gobernación de Arica (Governor's Office - Arica)

(d) Intendencia Región de Tarapacá (Intendancy of Tarapacá Region)

(e) Gobernación de Iquique (Governor's Office - Iquique)

(f) Gobernación de Tamarugal (Governor's Office - Tamarugal)

(g) Intendencia Región de Antofagasta (Intendancy of Antofagasta Region)

(h) Gobernación de Antofagasta (Governor's Office – Antofagasta)

(i) Gobernación de Loa (Governor's Office – Loa)

(j) Gobernación de Tocopilla (Governor's Office – Tocopilla)

(k) Intendencia Región de Atacama (Intendancy of Atacama Región)

(l) Gobernación de Copiapó (Governor's Office – Copiapó)

(m) Gobernación de Huasco (Governor's Office – Huasco)

(n) Gobernación de Chañaral (Governor's Office – Chañaral)

(o) Intendencia Región de Coquimbo (Intendancy of Coquimbo Region)

(p) Gobernación de El Elqui (Governor's Office – El Elqui)

(q) Gobernación de Limarí (Governor's Office - Limarí)

(r) Gobernación de Choapa (Governor's Office – Choapa)

(s) Intendencia Región de Valparaíso (Intendancy of Valparaíso Region)

(t) Gobernación de Valparaíso (Governor's Office - Valparaíso)

(u) Gobernación de Quillota (Governor's Office - Quillota)

(v) Gobernación de San Antonio (Governor's Office – San Antonio)

(w) Gobernación de San Felipe (Governor's Office – San Felipe)

(x) Gobernación de Los Andes (Governor's Office – Los Andes)

(y) Gobernación de Petorca (Governor's Office - Petorca)

(z) Gobernación de Isla de Pascua (Governor's Office –Isla de Pascua)

(aa) Intendencia Región del Libertador Bernardo O´Higgins (Intendancy of Libertador Bernardo O'Higgins Region)

(bb) Gobernación de Cachapoal (Governor's Office - Cachapoal)

(cc) Gobernación de Colchagua (Governor's Office - Colchagua)

(dd) Gobernación de Cardenal Caro (Governor's Office – Cardenal Caro)

(ee) Intendencia Región del Maule (Intendancy of Maule Region)

(ff) Gobernación de Curicó (Governor's Office -Curicó)

(gg) Gobernación de Talca (Governor's Office - Talca)

(hh) Gobernación de Linares (Governor's Office - Linares)

(ii) Gobernación de Cauquenes (Governor's Office - Cauquenes)

(jj) Intendencia Región del Bío Bío (Intendancy of Bío Bío Region)

(kk) Gobernación de Concepción (Governor's Office - Concepción)

(ll) Gobernación de Ñuble (Governor's Office - Ñuble)

(mm) Gobernación de Bío Bío (Governor's Office – Bío Bío)

(nn) Gobernación de Arauco (Governor's Office - Arauco)

(oo) Intendencia Región de La Araucanía (Intendancy of La Araucanía Region)

(pp) Gobernación de Cautín (Governor's Office -Cautín)

(qq) Gobernación de Malleco (Governor's Office - Malleco)

(rr) Intendencia Región de Los Ríos (Intendancy of Los Ríos Region)

(ss) Gobernación de Valdivia (Governor's Office - Valdivia)

(tt) Gobernación de Ranco (Governor's Office - Ranco)

(uu) Intendencia Región de Los Lagos (Intendancy of Los Lagos Region)

(vv) Gobernación de Llanquihue (Governor's Office - Llanquihue)

(ww) Gobernación de Osorno (Governor's Office - Osorno)

(xx) Gobernación de Chiloé (Governor's Office - Chiloé)

(yy) Gobernación de Palena (Governor's Office - Palena)

(zz) Intendencia Región de Aysén del General Carlos Ibañez del Campo (Intendancy of Aysén del General Carlos Ibáñez del Campo Region)

(aaa) Gobernación de Coihaique (Governor's Office - Coihaique)

(bbb) Gobernación de Puerto Aysén (Governor's Office –Puerto Aysén)

(ccc) Gobernación de General Carrera (Governor's Office – General Carrera)

(ddd) Gobernación de Capitán Prat (Governor's Office – Capitán Prat)

(eee) Intendencia Región de Magallanes y de la Antártica Chilena (Intendancy of Magallanes y de la Antártica Chilena Region)

(fff) Gobernación de Magallanes (Governor's Office - Magallanes)

(ggg) Gobernación de Última Esperanza (Governor's Office - Última Esperanza)

(hhh) Gobernación de Tierra del Fuego (Governor's Office – Tierra del Fuego)

(iii) Gobernación de Antártica Chilena (Governor's Office – Antártica Chilena)

(jjj) Intendencia Región Metropolitana (Intendancy of Metropolitan Region)

(kkk) Gobernación de Maipo (Governor's Office - Maipo)

(lll) Gobernación de Cordillera (Governor's Office - Cordillera)

(mmm) Gobernación de Talagante (Governor's Office - Talagante)

(nnn) Gobernación de Melipilla (Governor's Office - Melipilla)

(ooo) Gobernación de Chacabuco (Governor's Office - Chacabuco) (ppp) Gobernación de Santiago (Governor's Office - Santiago)

2. All Municipalities

Note to Section B

Chile offers the entities listed under this Section only to those Parties that assume equivalent commitments at the sub-central level1. In the case of the Parties that currently do not have entities at this level of government, Chile could extend the benefits of this Section to the Parties that make improvements to their respective coverage under Section A or C.

SECTION C: Other Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to entities listed in this Section where the value of the procurement is estimated, in accordance with Section H (Threshold Adjustment Formula), to equal or exceed:

(a) for procurement of goods and services 220,000 SDRs

(b) for procurement of construction services 5,000,000 SDRs

2. The monetary thresholds set out in paragraph 1 shall be adjusted in accordance with Section H (Threshold Adjustment Formula) of this Schedule.

3. This Section shall cover only those entities specifically listed below.

List of Entities:

1. Empresa Portuaria Arica (Arica Port Company)

2. Empresa Portuaria Iquique (Iquique Port Company)

3. Empresa Portuaria Antofagasta (Antofagasta Port Company)

4. Empresa Portuaria Coquimbo (Coquimbo Port Company)

5. Empresa Portuaria Valparaíso (Valparaiso Port Company)

6. Empresa Portuaria San Antonio (San Antonio Port Company)

7. Empresa Portuaria Talcahuano San Vicente (Talcahuano San Vicente Port Company) 8. Empresa Portuaria Puerto Montt (Puerto Montt Port Company)

9. Empresa Portuaria Chacabuco (Chacabuco Port Company)

10. Empresa Portuaria Austral (Austral Port Company)

11. Aeropuertos de propiedad del Estado, dependientes de la Dirección General de Aeronáutica Civil (State-owned Airports, dependent on the General Directorate for Civil Aeronautics)

SECTION D: Goods

Chapter 15 (Government Procurement) shall apply to all goods procured by the entities listed in Sections A, B and C, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

SECTION E: Services

Chapter 15 (Government Procurement) shall apply to all services procured by the entities listed in Sections A, B and C, except the following:

Financial Services

All classes

SECTION F: Construction Services

1. Chapter 15 (Government Procurement) shall apply to all construction services procured by the entities listed in Sections A, B and C, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

2. Chapter 15 (Government Procurement) shall not apply to construction services intended for Isla de Pascua (Easter Island).

SECTION G: General Notes

1. Chapter 15 (Government Procurement) shall not apply to any form of preference to benefit micro, small and medium sized enterprises.

2. For greater certainty, Chapter 15 (Government Procurement) shall not apply to:

(a) procurement by a procuring entity from another government entity; and

(b) procurement by a procuring entity on behalf of an entity not listed in this Schedule.

SECTION H: Threshold Adjustment Formula

1. The threshold shall be adjusted in every even-numbered year with each adjustment taking effect on January 1, beginning on January 1 of first even-numbered year after the date of entry into force of this Agreement for Chile.

2. Every two years, Chile shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Chilean pesos. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Chilean peso in terms of the Special Drawing Rights (SDRs) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect.

4. Chile shall consult if a major change in its national currency relative to the SDRs or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurements is published on the following websites: www.chilecompra.cl

www.mercadopublico.cl

www.mop.cl

www.diarioficial.cl

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF JAPAN

SECTION A: Central Government Entities

List of Entities:

All entities covered by the Accounts Law (会計法) (Law No. 35 of 1947) as follows:

1. House of Representatives (衆議院)

2. House of Councillors (参議院)

3. Supreme Court (最高裁判所)

4. Board of Audit (会計検査院)

5. Cabinet (内閣)

6. National Personnel Authority (人事院)

7. Cabinet Office (内閣府)

8. Reconstruction Agency (復興庁)

9. Imperial Household Agency (宮内庁)

10. Japan Fair Trade Commission (公正取引委員会)

11. National Public Safety Commission (National Police Agency) (国家公安委員会 (警察庁))

12. Personal Information Protection Commission (個人情報保護委員会)

13. Financial Services Agency (金融庁)

14. Consumer Affairs Agency (消費者庁)

15. Ministry of Internal Affairs and Communications (総務省)

16. Ministry of Justice (法務省)

17. Ministry of Foreign Affairs (外務省)

18. Ministry of Finance (財務省)

19. Ministry of Education, Culture, Sports, Science and Technology (文部科学省)

20. Ministry of Health, Labour and Welfare (厚生労働省)

21. Ministry of Agriculture, Forestry and Fisheries (農林水産省)

22. Ministry of Economy, Trade and Industry (経済産業省)

23. Ministry of Land, Infrastructure, Transport and Tourism (国土交通省)

24. Ministry of the Environment (環境省)

25. Ministry of Defense (防衛省)

Notes to Section A

Entities covered by the Accounts Law include all their internal subdivisions, independent organs and other organisations and local branch offices provided for in the National Government Organization Law (国家行政組織法) (Law No. 120 of 1948) and the Law establishing the Cabinet Office (内閣府設置法) (Law No. 89 of 1999).

SECTION B: Sub-Central Government Entities

List of Entities:

All prefectural governments entitled "To (都)", "Do (道)", "Fu (府)" and "Ken (県)", and all designated cities entitled "Shitei-toshi (指定都市)", covered by the Local Autonomy Law (地方自治法) (Law No. 67 of 1947) as follows:

1. Hokkaido (北海道)

2. Aomori-ken (青森県)

3. Iwate-ken (岩手県)

4. Miyagi-ken (宮城県)

5. Akita-ken (秋田県)

6. Yamagata-ken (山形県)

7. Fukushima-ken (福島県)

8. Ibaraki-ken (茨城県)

9. Tochigi-ken (栃木県)

10. Gunma-ken (群馬県)

11. Saitama-ken (埼玉県)

12. Chiba-ken (千葉県)

13. Tokyo-to (東京都)

14. Kanagawa-ken (神奈川県)

15. Niigata-ken (新潟県)

16. Toyama-ken (富山県)

17. Ishikawa-ken (石川県)

18. Fukui-ken (福井県)

19. Yamanashi-ken (山梨県)

20. Nagano-ken (長野県)

21. Gifu-ken (岐阜県)

22. Shizuoka-ken (静岡県)

23. Aichi-ken (愛知県)

24. Mie-ken (三重県)

25. Shiga-ken (滋賀県)

26. Kyoto-fu (京都府)

27. Osaka-fu (大阪府)

28. Hyogo-ken (兵庫県)

29. Nara-ken (奈良県)

30. Wakayama-ken (和歌山県)

31. Tottori-ken (鳥取県)

32. Shimane-ken (島根県)

33. Okayama-ken (岡山県)

34. Hiroshima-ken (広島県)

35. Yamaguchi-ken (山口県)

36. Tokushima-ken (徳島県)

37. Kagawa-ken (香川県)

38. Ehime-ken (愛媛県)

39. Kochi-ken (高知県)

40. Fukuoka-ken (福岡県)

41. Saga-ken (佐賀県)

42. Nagasaki-ken (長崎県)

43. Kumamoto-ken (熊本県)

44. Oita-ken (大分県)

45. Miyazaki-ken (宮崎県)

46. Kagoshima-ken (鹿児島県)

47. Okinawa-ken (沖縄県)

48. Osaka-shi (大阪市)

49. Nagoya-shi (名古屋市)

50. Kyoto-shi (京都市)

51. Yokohama-shi (横浜市)

52. Kobe-shi (神戸市)

53. Kitakyushu-shi (北九州市)

54. Sapporo-shi (札幌市)

55. Kawasaki-shi (川崎市)

56. Fukuoka-shi (福岡市)

57. Hiroshima-shi (広島市)

58. Sendai-shi (仙台市)

59. Chiba-shi (千葉市)

60. Saitama-shi (さいたま市)

61. Shizuoka-shi (静岡市)

62. Sakai-shi (堺市)

63. Niigata-shi (新潟市)

64. Hamamatsu-shi (浜松市)

65. Okayama-shi (岡山市)

66. Sagamihara-shi (相模原市)

67. Kumamoto-shi (熊本市)

Notes to Section B

1. For Malaysia, Mexico, New Zealand, United States and Viet Nam, Chapter 15 (Government Procurement) shall not apply to procurement by entities listed in Section B.

2. "To (都)", "Do (道)", "Fu (府)", "Ken (県)" and "Shitei-toshi (指定都市)" covered by the Local Autonomy Law include all internal subdivisions, attached organisations and branch offices of all their governors or mayors, committees and other organisations provided for in the Local Autonomy Law.

3. Chapter 15 (Government Procurement) shall not cover contracts which the entities award for the purpose of their daily profit-making activities which are exposed to competitive forces in markets. This note shall not be used in a manner which circumvents the provisions of Chapter 15 (Government Procurement).

4. Procurement related to operational safety of transportation is not covered.

5. Procurement related to the production, transport or distribution of electricity is not covered.

SECTION C: Other Entities

List of Entities:

Group A

1. Agriculture and Livestock Industries Corporation (独立行政法人農畜産業振興機構)

2. Central Nippon Expressway Company Limited (中日本高速道路株式会社)

3. Development Bank of Japan Inc. (株式会社日本政策投資銀行)

4. East Nippon Expressway Company Limited (東日本高速道路株式会社)

5. Environmental Restoration and Conservation Agency (独立行政法人環境再生保全機構)

6. Farmers' Pension Fund (独立行政法人農業者年金基金)

7. Fund for the Promotion and Development of the Amami Islands (独立行政法人奄美群島振興開発基金)

8. Government Pension Investment Fund (年金積立金管理運用独立行政法人)

9. Hanshin Expressway Company Limited (阪神高速道路株式会社)

10. Health Insurance Claims Review & Reimbursement Services (社会保険診療報酬支払基金)

11. Honshu-Shikoku Bridge Expressway Company Limited (本州四国連絡高速道路株式会社)

12. Japan Alcohol Corporation (日本アルコール産業株式会社)

13. Japan Arts Council (独立行政法人日本芸術文化振興会)

14. Japan Atomic Energy Agency (国立研究開発法人日本原子力研究開発機構) (Note 2(c))

15 Japan Bank for International Cooperation (株式会社国際協力銀行)

16. Japan Environmental Storage & Safety Corporation (中間貯蔵・環境安全事業株式会社)

17. Japan Expressway Holding and Debt Repayment Agency (独立行政法人日本高速道路保有・債務返済機構)

18. Japan External Trade Organization (独立行政法人日本貿易振興機構)

19. Japan Finance Corporation (株式会社日本政策金融公庫)

20. Japan Finance Organization for Municipalities (地方公共団体金融機構)

21. Japan Foundation, The (独立行政法人国際交流基金)

22. Japan Housing Finance Agency (独立行政法人住宅金融支援機構)

23. Japan Institute for Labour Policy and Training, The (独立行政法人労働政策研究・研修機構)

24. Japan International Cooperation Agency (独立行政法人国際協力機構)

25. Japan Labour Health and Welfare Organization (独立行政法人労働者健康福祉機構)

26. Japan National Tourism Organization (独立行政法人国際観光振興機構)

27. Japan Oil, Gas and Metals National Corporation (独立行政法人石油天然ガス・金属鉱物資源機構) (Note 2(d))

28. Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers (独立行政法人高齢・障害・求職者雇用支援機構)

29. Japan Post Bank Company Limited (株式会社ゆうちょ銀行)

30. Japan Post Company Limited (日本郵便株式会社)

31. Japan Post Holdings Company Limited (日本郵政株式会社)

32. Japan Post Insurance Company Limited (株式会社かんぽ生命保険)

33. Japan Racing Association (日本中央競馬会)

34. Japan Railway Construction, Transport and Technology Agency (独立行政法人鉄道建設・運輸施設整備支援機構) (Note 2(a)(e))

35. Japan Science and Technology Agency (国立研究開発法人科学技術振興機構)

36. Japan Society for the Promotion of Science (独立行政法人日本学術振興会)

37. Japan Sport Council (独立行政法人日本スポーツ振興センター)

38. Japan Student Services Organization (独立行政法人日本学生支援機構)

39. Japan Water Agency (独立行政法人水資源機構)

40. JKA (公益財団法人JKA)

41. Management Organization for Postal Savings and Postal Life Insurance (独立行政法人郵便貯金・簡易生命保険管理機構)

42. Metropolitan Expressway Company Limited (首都高速道路株式会社)

43. Mutual Aid Association for Agricultural, Forestry and Fishery Organization Personnel (農林漁業団体職員共済組合)

44. Narita International Airport Corporation (成田国際空港株式会社)

45. National Association of Racing, The (地方競馬全国協会)

46. National Center for Persons with Severe Intellectual Disabilities,

Nozominosono (独立行政法人国立重度知的障害者総合施設のぞみの園)

47. National Consumer Affairs Center of Japan (独立行政法人国民生活センター)

48. New Energy and Industrial Technology Development Organization (国立研究開発法人新エネルギー・産業技術総合開発機構)

49. Northern Territories Issue Association (独立行政法人北方領土問題対策協会)

50. Okinawa Development Finance Corporation (沖縄振興開発金融公庫)

51. Open University of Japan Foundation, The (放送大学学園)

52. Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構)

53. Organization for Workers' Retirement Allowance Mutual Aid (独立行政法人勤労者退職金共済機構)

54. Promotion and Mutual Aid Corporation for Private Schools of Japan, The (日本私立学校振興・共済事業団)

55. RIKEN (国立研究開発法人理化学研究所) (Note 2(c))

56. Tokyo Metro Co., Ltd. (東京地下鉄株式会社) (Note 2(b))

57. Urban Renaissance Agency (独立行政法人都市再生機構)

58. Welfare and Medical Service Agency (独立行政法人福祉医療機構)

59. West Nippon Expressway Company Limited (西日本高速道路株式会社)

Group B

1. Building Research Institute (国立研究開発法人建築研究所)

2. Center for National University Finance and Management (独立行政法人国立大学財務・経営センター)

3. Civil Aviation College (独立行政法人航空大学校)

4. Electronic Navigation Research Institute (国立研究開発法人電子航法研究所)

5. Fisheries Research Agency (国立研究開発法人水産総合研究センター)

6. Food and Agricultural Materials Inspection Center (独立行政法人農林水産消費安全技術センター)

7. Forestry and Forest Products Research Institute (国立研究開発法人森林総合研究所)

8. Inter-University Research Institute Corporation (大学共同利用機関法人)

9. Japan Health Insurance Association (全国健康保険協会)

10. Japan International Research Center for Agricultural Sciences (国立研究開発法人国際農林水産業研究センター)

11. Japan Mint (独立行政法人造幣局)

12. Japan Pension Service (日本年金機構)

13. Labor Management Organization for USFJ Employees (独立行政法人駐留軍等労働者労務管理機構)

14. Marine Technical Education Agency (独立行政法人海技教育機構)

15. National Agency of Vehicle Inspection (自動車検査独立行政法人)

16. National Agriculture and Food Research Organization (国立研究開発法人農業・食品産業技術総合研究機構)

17. National Archives of Japan (独立行政法人国立公文書館)

18. National Cancer Center (国立研究開発法人国立がん研究センター)

19. National Center for Child Health and Development (国立研究開発法人国立成育医療研究センター)

20. National Center for Geriatrics and Gerontology (国立研究開発法人国立長寿医療研究センター)

21. National Center for Global Health and Medicine (国立研究開発法人国立国際医療研究センター)

22. National Center for Industrial Property Information and Training (独立行政法人工業所有権情報・研修館)

23. National Center for Seeds and Seedlings (独立行政法人種苗管理センター)

24. National Center for Teachers' Development (独立行政法人教員研修センター)

25. National Center for University Entrance Examinations (独立行政法人大学入試センター)

26. National Center of Neurology and Psychiatry (国立研究開発法人国立精神・神経医療研究センター)

27. National Cerebral and Cardiovascular Center (国立研究開発法人国立循環器病研究センター)

28. National Fisheries University (独立行政法人水産大学校)

29. National Hospital Organization (独立行政法人国立病院機構)

30. National Institute for Agro-Environmental Sciences (国立研究開発法人農業環境技術研究所)

31. National Institute for Environmental Studies (国立研究開発法人国立環境研究所)

32. National Institute for Materials Science (国立研究開発法人物質・材料研究機構)

33. National Institute for Sea Training (独立行政法人航海訓練所)

34. National Institute of Advanced Industrial Science and Technology (国立研究開発法人産業技術総合研究所)

35. National Institute of Agrobiological Sciences (国立研究開発法人農業生物資源研究所)

36. National Institute of Information and Communications Technology (国立研究開発法人情報通信研究機構)

37. National Institute of Occupational Safety and Health (独立行政法人労働安全衛生総合研究所)

38. National Institute of Radiological Sciences (国立研究開発法人放射線医学総合研究所)

39. National Institute of Special Needs Education (独立行政法人国立特別支援教育総合研究所)

40. National Institute of Technology (独立行政法人国立高等専門学校機構)

41. National Institute of Technology and Evaluation (独立行政法人製品評価技術基盤機構)

42. National Institutes for Cultural Heritage (独立行政法人国立文化財機構)

43. National Institutes of Biomedical Innovation, Health and Nutrition (国立研究開発法人医薬基盤・健康・栄養研究所) (Note 2 (f))

44. National Institution for Academic Degrees and University Evaluation (独立行政法人大学評価・学位授与機構)

45. National Institution for Youth Education (独立行政法人国立青少年教育振興機構)

46. National Livestock Breeding Center (独立行政法人家畜改良センター)

47. National Maritime Research Institute (国立研究開発法人海上技術安全研究所)

48. National Museum of Art (独立行政法人国立美術館)

49. National Museum of Nature and Science (独立行政法人国立科学博物館)

50. National Printing Bureau (独立行政法人国立印刷局)

51. National Research Institute for Earth Science and Disaster Prevention (国立研究開発法人防災科学技術研究所)

52. National Research Institute of Brewing (独立行政法人酒類総合研究所)

53. National Statistics Center (独立行政法人統計センター)

54. National Traffic Safety and Environment Laboratory (独立行政法人交通安全環境研究所)

55. National University Corporation (国立大学法人)

56. National Women's Education Center (独立行政法人国立女性教育会館)

57. Nippon Export and Investment Insurance (独立行政法人日本貿易保険)

58. Port and Airport Research Institute (国立研究開発法人港湾空港技術研究所)

59. Public Works Research Institute (国立研究開発法人土木研究所)

60. Research Institute of Economy, Trade and Industry (独立行政法人経済産業研究所)

Notes to Section C

1. Chapter 15 (Government Procurement) shall not cover contracts which the entities in Group A award for the purpose of their daily profit-making activities which are exposed to competitive forces in markets. This note shall not be used in a manner which circumvents the provisions of Chapter 15 (Government Procurement).

2. Notes to specific entities:

(a) With respect to the railway construction-related activities by Japan Railway Construction, Transport and Technology Agency, procurement related to operational safety of transportation is not covered.

(b) With respect to Tokyo Metro Co., Ltd., procurement related to operational safety of transportation is not covered.

(c) With respect to Japan Atomic Energy Agency and RIKEN, procurement which could lead to the disclosure of information incompatible with the purposes of the Treaty on the Non-Proliferation of Nuclear Weapons or with international agreements on intellectual property rights and procurement for safety-related activities aiming at utilisation and management of radioactive materials and responding to emergencies of nuclear installation are not covered.

(d) With respect to Japan Oil, Gas and Metals National Corporation, procurement related to geological and geophysical survey is not covered.

(e) With respect to the shipbuilding activities by Japan Railway Construction, Transport and Technology Agency, procurement of ships to be jointly owned with private companies is not covered.

(f) With respect to National Institutes of Biomedical Innovation, Health and Nutrition, procurement other than that conducted for the National Institute of Health and Nutrition is not covered.

SECTION D: Goods

1. Chapter 15 (Government Procurement) covers procurement of all goods by the entities listed in Sections A through C, unless otherwise specified in this Agreement.

2. Chapter 15 (Government Procurement) covers procurement by the Ministry of Defense of the following Federal Supply Classification (FSC) categories subject to the Japanese Government determinations under Article 29.2 (Security Exceptions):

FSC Description

22 Railway Equipment

24 Tractors

32 Woodworking Machinery and Equipment

34 Metalworking Machinery

35 Service and Trade Equipment

36 Special Industry Machinery

37 Agricultural Machinery and Equipment

38 Construction, Mining, Excavating, and Highway Maintenance Equipment 39 Materials Handling Equipment

40 Rope, Cable, Chain, and Fittings

41 Refrigeration, Air Conditioning, and Air Circulating Equipment 43 Pumps and Compressors

45 Plumbing, Heating and Sanitation Equipment

46 Water Purification and Sewage Treatment Equipment

47 Pipe, Tubing, Hose, and Fittings

48 Valves

51 Hand Tools

52 Measuring Tools

55 Lumber, Millwork, Plywood and Veneer

61 Electric Wire, and Power and Distribution Equipment

62 Lighting Fixtures and Lamps

65 Medical, Dental, and Veterinary Equipment and Supplies

6630 Chemical Analysis Instruments

6635 Physical Properties Testing Equipment

6640 Laboratory Equipment and Supplies

6645 Time Measuring Instruments

6650 Optical Instruments

6655 Geophysical and Astronomical Instruments

6660 Meteorological Instruments and Apparatus

6670 Scales and Balances

6675 Drafting, Surveying, and Mapping Instruments

6680 Liquid and Gas Flow, Liquid Level, and Mechanical Motion Measuring Instruments

6685 Pressure, Temperature, and Humidity Measuring and Controlling Instruments

6695 Combination and Miscellaneous Instruments

67 Photographic Equipment

68 Chemicals and Chemical Products

71 Furniture

72 Household and Commercial Furnishings and Appliances 73 Food Preparation and Serving Equipment

74 Office Machines and Visible Record Equipment 75 Office Supplies and Devices

76 Books, Maps, and Other Publications

77 Musical Instruments, Phonographs, and Home-type Radios 79 Cleaning Equipment and Supplies

80 Brushes, Paints, Sealers, and Adhesives

8110 Drums and Cans

8115 Boxes, Cartons and Crates

8125 Bottles and Jars

8130 Reels and Spools

8135 Packaging and Packing Bulk Materials

85 Toiletries

87 Agricultural Supplies

93 Non-metallic Fabricated Materials

94 Non-metallic Crude Materials

99 Miscellaneous

SECTION E: Services

Chapter 15 (Government Procurement) covers the following services, which are identified in accordance with the United Nations Provisional Central Product Classification (CPC) 1991, as well as document MTN.GNS/W/120 for Telecommunications services:

(United Nations Provisional Central Product Classification (CPC), 1991)

6112 Maintenance and repair services of motor vehicles (Note 1)

6122 Maintenance and repair services of motorcycles and snowmobiles (Note 1) 633 Repair services of personal and household goods

642 Food serving services (Note 5)

643 Beverage serving services (Note 5)

712 Other land transport services (except 71235 Mail transportation by land) 7213 Rental services of sea-going vessels with operator

7223 Rental services of non-sea-going vessels with operator

73 Air transport services (except 73210 Mail transportation by air)

748 Freight transport agency services

7512 Courier services (Note 2)

83106 to 83108 Leasing or rental services concerning agricultural machinery and equipment without operator (Note 5)

83203 Leasing or rental services concerning furniture and other household Appliances (Note 5)

83204 Leasing or rental services concerning pleasure and leisure equipment (Note 5)

83209 Leasing or rental services concerning other personal or household goods (Note 5)

84 Computer and related services

864 Market research and public opinion polling services

865 Management consulting services (Note 5)

866 Services related to management consulting (except 86602 Arbitration and conciliation services) (Note 5)

867 Architectural, engineering and other technical services (Note 3) 871 Advertising services

87304 Armoured car services

874 Building-cleaning services

876 Packaging services (Note 5)

8814 Services incidental to forestry and logging, including forest management 88442 Publishing and printing services (Note 4)

886 Repair services incidental to metal products, machinery and equipment 921 Primary education services

922 Secondary education services

923 Higher education services

924 Adult education services

94 Sewage and refuse disposal, sanitation and other environmental protection services

9611 Motion picture and video tape production and distribution services (except 96112 Motion picture or video tape production services)

Notes to Section E

1. Maintenance and repair services are not covered with respect to those motor vehicles, motorcycles and snowmobiles which are specifically modified and inspected to meet regulations of the entities.

2. Courier services are not covered with respect to letters.

3. Architectural, engineering and other technical services related to construction services, with the exception of the following services when procured independently, are covered:

(a) Final design services of CPC 86712 Architectural design services;

(b) CPC 86713 Contract administration services;

(c) Design services consisting of one or a combination of final plans, specifications and cost estimates of either CPC 86722 Engineering design services for the construction of foundations and building structures, or CPC 86723 Engineering design services for mechanical and electrical installations for buildings, or CPC 86724 Engineering design services for the construction of civil engineering works; and

(d) CPC 86727 Other engineering services during the construction and installation phase.

4. Publishing and printing services are not covered with respect to materials containing confidential information.

5. With respect to t he following services, Chapter 15 (Government Procurement) shall not cover procurement by the entities listed in Sections B and C:

CPC 642 Food serving services

CPC 643 Beverage serving services

CPC 83106 to 83108 Leasing or rental services concerning agricultural machinery and equipment without operator

CPC 83203 Leasing or rental services concerning furniture and other household Appliances

CPC 83204 Leasing or rental services concerning pleasure and leisure equipment CPC 83209 Leasing or rental services concerning other personal or household goods

CPC 865 Management consulting services

CPC 866 Services related to management consulting (except 86602 Arbitration and conciliation services)

CPC 876 Packaging services

SECTION F: Construction Services

List of Division 51, United Nations Provisional Central Product Classification (CPC) 1991: All services listed in Division 51.

Note to Section F

Procurement with regard to a construction project within the scope of the Act on Promotion of Private Finance Initiative (民間資金等の活用による公共施設等の整備等の促進に関する法律) (Law No. 117 of 1999) as of 30 November 2011 is covered.

SECTION G: General Notes

1. Chapter 15 (Government Procurement) does not cover contracts to be awarded to co-operatives or associations in accordance with laws and regulations existing on the date of entry into force of this Agreement for Japan.

2. Except as otherwise provided for in the Note to Section F, procurement with regard to a project within the scope of the Act on Promotion of Private Finance Initiative (Law No. 117 of 1999) as of 10 December 2010 is covered.

SECTION H: Threshold Adjustment Formula

1. The thresholds shall be adjusted in every even-numbered year with each adjustment taking effect on April 1, beginning on April 1 of the first even-numbered year after the date of entry into force of this Agreement for Japan.

2. Every two years, Japan shall calculate and publish the value of the thresholds under this Schedule expressed in Yen. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Yen in terms of the Special Drawing Rights (SDR) over the two-year period preceding January 1 of the year in which the adjusted thresholds are to take effect.

4. Japan shall notify the other Parties of the current thresholds in its currency immediately after the date of entry into force of this Agreement for Japan, and the adjusted thresholds in its currency thereafter in a timely manner.

5. Japan shall consult if a major change in its national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

1. Electronic or paper media which publishes the information described in Article 15.6.1 (Publication of Procurement Information) pursuant to Article 15.6.2 (Publication of Procurement Information).

(a) Section A:

Kanpō (官報)

or Hōreizensho (法令全書)

(b) Section B:

Kenpō (県報)

Shihō (市報)

or their equivalents,

or Kanpō (官報)

or Hōreizensho (法令全書)

Kanpō (官報)

or Hōreizensho (法令全書),

or http://www.mofa.go.jp/mofaj/ecm/ep/page24_000444.html

2. Electronic or paper media which publishes the notices required by Article 15.7 (Notices of Intended Procurement), Article 15.9.3 (Qualification of Suppliers) and Article 15.16.3 (Post-Award Information) pursuant to Article 15.6.2 (Publication of Procurement Information).

(a) Section A:

Kanpō (官報) (available on paper media and at http://kanpou.npb.go.jp). (b) Section B:

Kenpō (県報);

Shihō (市報);

or their equivalents.

Kanpō (官報);

or http://www.mofa.go.jp/mofaj/ecm/ep/page24_000444.html

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF MALAYSIA

SECTION A: Central Government Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the entities of Central Government listed in this Section where the value of the procurement is estimated to equal or exceed the following relevant thresholds:

List of Entities (Note 1):

1. Ministry of Agriculture and Agro-Based Industry (Kementerian Pertanian dan Industri Asas Tani) (Note 2)

(a) All divisions

(b) Department of Agriculture (Jabatan Pertanian)

(d) Department of Veterinary Services (Jabatan Perkhidmatan Veterinar)

(e) Malaysian Quarantine and Inspection Services (Jabatan Perkhidmatan Quarantin dan Pemeriksaan Malaysia)

2. Ministry of Communication and Multimedia (Kementerian Komunikasi dan Multimedia)

(a) All divisions

(b) Broadcasting Department (Radio and Television) (Jabatan Penyiaran (Radio dan Televisyen))

(d) Tun Abdul Razak Broadcasting and Information Institute (Institut Penyiaran dan Penerangan Tun Abdul Razak)

3. Ministry of Defence (Kementerian Pertahanan) (Note 3)

(a) All divisions

(b) Judge Advocate General Department (Jabatan Ketua Hakim Peguam)

4. Ministry of Domestic Trade, Co-operatives and Consumerism (Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan)

(a) All divisions

5. Ministry of Education (Kementerian Pendidikan) (Note 4)

(a) All divisions

(b) State Education Departments (Jabatan Pendidikan Negeri)

6. Ministry of Energy, Green Technology and Water (Kementerian Tenaga, Teknologi Hijau dan Air)

(a) All divisions

7. Ministry of Federal Territories (Kementerian Wilayah Persekutuan) (a) All divisions

8. Ministry of Finance (Kementerian Kewangan)

(a) Federal Treasury of Malaysia (Perbendaharaan Malaysia) (Note 5)

(b) Property Valuation and Services Department (Jabatan Penilaian dan Perkhidmatan Harta)

9. Ministry of Foreign Affairs (Kementerian Luar Negeri)

(a) All divisions

(b) Institute of Diplomacy and Foreign Relations (Institut Diplomasi dan Hubungan Luar)

10. Ministry of Health (Kementerian Kesihatan)

(a) All divisions (Note 6)

(b) Children Dental Centre & Dental Training College Malaysia (Pusat Pergigian Kanak-Kanak & Kolej Latihan Pergigian Malaysia)

(d) Institute for Health Behavioral Research (Institut Penyelidikan Tingkahlaku Kesihatan)

(e) Institute for Health Management (Institut Pengurusan Kesihatan)

(f) Institute for Health Systems Research (Institut Penyelidikan Sistem Kesihatan)

(g) Institute for Medical Research (Institut Penyelidikan Perubatan)

(h) Institute for Medical Respiratory (Institut Perubatan Respiratori)

(i) Institute of Public Health (Institut Kesihatan Umum)

(j) National Blood Centre (Pusat Darah Negara)

(k) National Cancer Institute (Institut Kanser Negara)

(l) National Leprosy Control Centre (Pusat Kawalan Kusta Negara)

(m) National Pharmaceutical Control Bureau (Biro Pengawalan Farmaseutikal Kebangsaan)

11. Ministry of Higher Education (Kementerian Pendidikan Tinggi) (Note 7)

(a) All divisions

(b) Community College Education Department (Jabatan Pendidikan Kolej Komuniti)

12. Ministry of Home Affairs (Kementerian Dalam Negeri)

(a) All divisions (Note 8(a) and Note 8(b))

(b) Immigration Department Malaysia (Jabatan Imigresen Malaysia) (Note 8(b)) (c) National Anti-Drug Agency (Agensi Anti Dadah Kebangsaan) (Note 8(b))

(d) National Registration Department (Jabatan Pendaftaran Negara) (Note 8(b)) (e) People's Volunteer Corps (Jabatan Sukarelawan Malaysia)

(f) Prison Department Malaysia (Jabatan Penjara Malaysia) (Note 8(b)) (g) Public Defence Department (Jabatan Pertahanan Awam) (Note 8(b)) (h) Registrar of Societies (Jabatan Pendaftaran Pertubuhan)

(i) Royal Malaysia Police Department (Jabatan Polis Diraja Malaysia) (Note 8(b))

13. Ministry of Human Resources (Kementerian Sumber Manusia)

(a) All divisions

(b) Department of Occupational Safety and Health (Jabatan Keselamatan dan Kesihatan Pekerjaan)

(e) Industrial Relations Department (Jabatan Perhubungan Perusahaan)

(f) Labour Department Peninsular Malaysia (Jabatan Tenaga Kerja Semenanjung Malaysia)

(g) Labour Department Sabah (Jabatan Tenaga Kerja Sabah)

(h) Labour Department Sarawak (Jabatan Tenaga Kerja Sarawak)

(i) Manpower Department (Jabatan Tenaga Manusia)

(j) Trade Union Affairs Department (Jabatan Hal Ehwal Kesatuan Sekerja)

14. Ministry of International Trade and Industry (Kementerian Perdagangan Antarabangsa dan Industri)

(a) All divisions

15. Ministry of Natural Resources and Environment (Kementerian Sumber Asli dan Alam Sekitar)

(a) All divisions

(b) Department of Biosafety (Jabatan Biokeselamatan)

(d) Department of Marine Park Malaysia (Jabatan Taman Laut Malaysia)

(e) Department of Wildlife and National Parks (Jabatan Perlindungan Hidupan Liar dan Taman-Taman Negara)

(f) Forestry Department Peninsular Malaysia (Jabatan Perhutanan Semenanjung Malaysia)

(g) National Hydraulic Research Institute (Institut Penyelidikan Hidraulik Kebangsaan)

(h) National Land and Survey Institute (Institut Tanah dan Ukur Negara)

16. Ministry of Plantation Industries and Commodities (Kementerian Perusahaan Perladangan dan Komoditi)

(a) All divisions

17. Ministry of Rural and Regional Development (Kementerian Kemajuan Luar Bandar dan Wilayah)

(a) All divisions

(b) Institute for Rural Advancement (Institut Kemajuan Desa)

18. Ministry of Science, Technology and Innovations (Kementerian Sains, Teknologi dan Inovasi)

(a) All divisions

(b) Department of Chemistry (Jabatan Kimia Malaysia)

(d) Malaysian Meteorological Department (Jabatan Meteorologi Malaysia)

(e) National Science Centre (Pusat Sains Negara)

19. Ministry of Tourism and Culture (Kementerian Pelancongan dan Kebudayaan)

(a) All divisions

(b) Department of Museums (Jabatan Muzium)

(d) Istana Budaya

(e) Malaysia National Library (Perpustakaan Negara Malaysia)

(f) National Archives of Malaysia (Arkib Negara Malaysia)

(g) National Department for Culture and Arts (Jabatan Kebudayaan dan Kesenian Negara)

20. Ministry of Transport (Kementerian Pengangkutan)

(a) All divisions

(b) Department of Civil Aviation (Jabatan Penerbangan Awam)

(d) Road Safety Department (Jabatan Keselamatan Jalan)

(e) Road Transport Department (Jabatan Pengangkutan Jalan)

21. Ministry of Urban Wellbeing, Housing and Local Government (Kementerian Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan) (Note 9)

(a) All divisions

(b) Fire and Rescue Department (Jabatan Bomba dan Penyelamat)

(d) Local Government Department (Jabatan Kerajaan Tempatan)

(e) National Housing Department (Jabatan Perumahan Negara)

(f) National Landscape Department (Jabatan Landskap Negara)

(g) National Solid Waste Management Department (Jabatan Pengurusan Sisa Pepejal Negara)

(h) Urban Wellbeing, Housing and Local Government Institute (Institut Latihan Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan)

22. Ministry of Women, Family and Community Development (Kementerian Pembangunan Wanita, Keluarga dan Masyarakat)

(a) All divisions

(b) Department of Women's Development (Jabatan Pembangunan Wanita)

(c) NAM Institute for the Empowerment of Women (Institut Pengupayaan Wanita Bagi Anggota Pergerakan Negara-Negara Berkecuali)

(d) Social Institute of Malaysia (Institut Sosial Malaysia)

23. Ministry of Works (Kementerian Kerja Raya)

(a) All divisions

(b) Public Works Department Malaysia (Jabatan Kerja Raya Malaysia)

24. Ministry of Youth and Sports (Kementerian Belia dan Sukan)

(a) All divisions

(b) Department of National Youth and Sports (Jabatan Belia dan Sukan Negara)

(d) Registrar of Youth Societies (Pejabat Pendaftar Pertubuhan Belia)

25. Prime Minister's Department (Jabatan Perdana Menteri)

(a) Ceremonial and International Conference Secretariat Division (Bahagian Istiadat dan Urus Setia Persidangan Antarabangsa)

(b) Chief Registrar's Office, Federal Court of Malaysia (Pejabat Ketua Pendaftar Mahkamah Persekutuan Malaysia)

(d) Economic Planning Unit (Unit Perancang Ekonomi)

(e) Implementation of Performance Management Unit (Unit Pelaksanaan Pengurusan Prestasi)

(f) Judicial and Legal Training Institute (Institut Latihan Kehakiman dan Perundangan)

(g) Legal Affairs Division (Bahagian Hal Ehwal Undang-Undang)

(h) Public Complaints Bureau (Biro Pengaduan Awam)

(i) Public Service Department (Jabatan Perkhidmatan Awam)

Notes to Section A

1. Chapter 15 (Government Procurement) shall cover only the entities listed under each Ministry and Prime Minister's Department (Jabatan Perdana Menteri) including the subordinates of the listed entities, unless otherwise specified. Those subordinates that have separate legal status are not covered.

2. Ministry of Agriculture and Agro-Based Industry (Kementerian Pertanian dan Industri Asas Tani): Chapter 15 (Government Procurement) shall not cover any procurement and distribution of inputs for agro-food production in Malaysia.

3. Ministry of Defence (Kementerian Pertahanan): Chapter 15 (Government Procurement) shall cover the procurement of goods and services described in United States Federal Supply Code (FSC) classification (Version August 1998) listed below:

FSC Description

22 Railway Equipment

23 Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles

24 Tractors

25 Vehicular Equipment Components

26 Tires and Tubes

29 Engine Accessories

30 Mechanical Power Transmission Equipment

31 Bearings

32 Woodworking Machinery and Equipment

34 Metalworking Machinery

35 Service and Trade Equipment

36 Special Industry Machinery

37 Agricultural Machinery and Equipment

38 Construction, Mining, Excavating and Highway Maintenance Equipment 39 Materials Handling Equipment

40 Rope, Cable, Chain and Fittings

41 Refrigeration, Air Conditioning and Air Circulating Equipment

42 Fire Fighting, Rescue and Safety Equipment

43 Pumps and Compressors

44 Furnace, Steam Plant and Drying Equipment

45 Plumbing, Heating and Sanitation Equipment

46 Water Purification and Sewage Treatment Equipment

47 Pipe, Tubing, Hose and Fittings

48 Valves

51 Hand tools

52 Measuring Tools

53 Hardware and Abrasives

54 Prefabricated Structures and Scaffolding

55 Lumber, Millwork, Plywood and Veneer

56 Construction and Building Materials

61 Electric Wire, and Power and Distribution Equipment

62 Lighting, Fixtures and Lamps

63 Alarm, Signal and Security Detection Systems

65 Medical, Dental and Veterinary Equipment and Supplies

67 Photographic Equipment

68 Chemicals and Chemical Products

69 Training Aids and Devices

70 General Purpose Automatic Data Processing Equipment, Software, Supplies and Support Equipment

71 Furniture

72 Household and Commercial Furnishings and Appliances

73 Food Preparation and Serving Equipment

74 Office Machines, Text Processing Systems and Visible Record Equipment 75 Office Supplies and Devices

76 Books, Maps and other Publications

77 Musical Instruments, Phonographs and Home-Type Radios

78 Recreational and Athletic Equipment

79 Cleaning Equipment and Supplies

80 Brushes, Paints, Sealers and Adhesives

81 Containers, Packaging and Packing Supplies

83 Textiles, Leather, Furs, Apparel and Shoe Findings, Tents and Flags 84 Clothing, Individual Equipment, and Insignia

85 Toiletries

87 Agricultural Supplies

88 Live Animals

91 Fuels, Lubricants, Oils and Waxes

93 Non-metallic Fabricated Materials

94 Non-metallic Crude Materials

95 Metal Bars, Sheets and Shapes

96 Ores, Minerals, and their Primary Products

99 Miscellaneous

4. Ministry of Education (Kementerian Pendidikan):

(a) Chapter 15 (Government Procurement) shall not cover:

(i) Examinations Syndicate (Lembaga Peperiksaan); and

(ii) procurement in relation to uniforms, text books, and milk and food programmes for pre-school and school children.

(b) For greater certainty, schools, matriculation colleges and teacher training institutes are covered.

5. Ministry of Finance (Kementerian Kewangan): Chapter 15 (Government Procurement) shall cover all divisions under Federal Treasury of Malaysia (Perbendaharaan Malaysia) except Government Investment Company Division (Bahagian Syarikat Pelaburan Kerajaan).

6. Ministry of Health (Kementerian Kesihatan): For greater certainty, government hospitals and clinics are covered.

7. Ministry of Higher Education (Kementerian Pendidikan Tinggi): For greater certainty, community colleges and polytechnics are covered.

8. Ministry of Home Affairs (Kementerian Dalam Negeri): Chapter 15 (Government Procurement) shall not cover:

(a) Publication and Qur'anic Text Control Division (Bahagian Kawalan Penerbitan dan Teks Al-Quran); and

(b) any procurement that has security considerations determined by the Ministry.

9. Ministry of Urban Wellbeing, Housing and Local Government (Kementerian Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan): Chapter 15 (Government Procurement) shall not cover procurement in relation to People's Housing Programme (Program Perumahan Rakyat).

SECTION B: Sub-Central Government Entities

None.

SECTION C: Other Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the entities listed in this Section where the value of the procurement is estimated to equal or exceed the following relevant thresholds:

List of Entities (Note 1):

1. Malaysia External Trade Development Corporation (Perbadanan Pembangunan Perdagangan Luar Malaysia)

2. Malaysia Productivity Corporation (Perbadanan Produktiviti Malaysia)

3. Malaysian Investment Development Authority (Lembaga Pembangunan Pelaburan Malaysia)

4. Small and Medium Enterprises Corporation Malaysia (Perbadanan Perusahaan Kecil dan Sederhana Malaysia)

Notes to Section C:

1. Chapter 15 (Government Procurement) shall cover only the entities listed including the subordinates of the listed entities, unless otherwise specified. Those subordinates that have separate legal status are not covered.

SECTION D: Goods

Chapter 15 (Government Procurement) shall apply to all goods, as described in the United Nations Provisional Central Product Classification (CPC), procured by the entities listed in Section A and Section C, unless otherwise specified in Chapter 15 (Government Procurement) and subject to Section G and the Notes to the respective Sections.

Notes to Section D:

1. Chapter 15 (Government Procurement) shall not cover the procurement of:

SECTION E: Services

Chapter 15 (Government Procurement) shall apply to services listed below, as described in the United Nations Provisional Central Product Classification (CPC), procured by the entities listed in Section A and Section C, unless otherwise specified in Chapter 15 (Government Procurement) and subject to Section G and the Notes to the respective Sections.

CPC Code

Description

61 Sale, maintenance and repair services of motor vehicles and motorcycles

62 Commission agents' and wholesale trade services, except of motor vehicles and motorcycles

63 Retail trade services; repair services of personal and household goods 71 Land transport services

72 Water transport services

732 Freight transportation by air

74 Supporting and auxiliary transport services (except for CPC 747 - Travel agency, tour operator and tourist guide services)

75 Post and Telecommunications Services (except for CPC 7511 - Postal services)

83 Leasing or rental services without operator (except for CPC 83101 -Leasing or rental services concerning private cars without operator)

84 Computer and Related Services

862 Accounting, auditing and book-keeping services

863 Taxation services

864 Market research and public opinion polls

865 Management consulting services (except for CPC 86502 - Financial management consulting services (except business tax))

86601 Project management services other than for construction

867 Architectural, engineering and other technical services

871 Advertising services

872 Placement and supply services of personnel

874 Building-cleaning services

875 Photographic services

876 Packaging services

87905 Translation and interpretation services

CPC Code

Description

884 Services incidental to manufacturing, except to the manufacture of metal products, machinery and equipment

885 Services incidental to the manufacture of metal products, machinery and equipment

886 Repair services incidental to metal products, machinery and equipment (except for CPC 8867 - Repair services n.e.c. of motor vehicles, trailers and semi-trailers, on a fee or contract basis)

92 Education services

93 Health and social services

94 Sewage and Refuse Disposal, Sanitation and Other Environmental Protection Services (except for CPC 9401 - Sewage services and CPC 9403 - Sanitation and similar services)

95 Services of membership organizations (except for CPC 95910 - Religious services)

96311 Library services

9641 Sporting services

97 Other services (except for CPC 97030 - Funeral, cremation and undertaking services and CPC 97090 - Other services n.e.c.)

98 Private households with employed persons

99 Services provided by extraterritorial organizations and bodies

Notes to Section E:

1. Chapter 15 (Government Procurement) shall not cover procurement of cabotage services for the shipment of goods from any port or place in Malaysia to another port or place in Malaysia; or from any port or place in Malaysia to any place in the exclusive economic zone or vice versa, that form a part of, or are incidental to a procurement contract.

2. For CPC 75 and CPC 84, Chapter 15 (Government Procurement) shall not cover any procurement that will affect Malaysia's essential security interest, as determined by the procuring entities.

3. Chapter 15 (Government Procurement) shall not cover plasma fractionation services.

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall apply to all construction services, as described in the United Nations Provisional Central Product Classification (CPC) 51, procured by the entities listed in Section A and Section C, unless otherwise specified in Chapter 15 (Government Procurement) and subject to Section G and the Notes to the respective Sections.

Notes to Section F:

1. Chapter 15 (Government Procurement) shall not cover procurement of dredging services.

2. Chapter 15 (Government Procurement) shall not cover construction services that is carried out to maintain or improve the existing slope (hillside surfacing) conditions through periodic maintenance; or to reconstruct or improve existing slopes or construct new slopes due to natural disaster, flood, landslide ground subsidence and other emergency and unforeseen circumstances.

SECTION G: General Notes

Unless otherwise specified, the following General Notes shall apply without exception to Chapter 15 (Government Procurement), including to all Sections of this Schedule.

1. Chapter 15 (Government Procurement) shall not apply to:

(a) any procurement by and for Istana Negara;

(b) any procurement in relation to rural development programmes in rural areas with less than 10,000 residents and poverty eradication programmes for households earning below Malaysia's Poverty Line Income;

(c) any Public Private Partnership (PPP) contractual arrangements including build-operate transfer (BOT) and public work concessions;

(d) any measures for the development, conservation or preservation of local handicraft, national treasures and national heritage;

(e) any procurement for religious purposes, including that form a part of, or incidental to a procurement contract;

(f) any procurement for research and development; and

(g) any procurement in relation to national celebration events except for construction services.

2. Malaysia reserves the right to adopt or maintain any measure that confers safeguards, provides preference or renders assistance, benefits or other forms of rights or interests to Bumiputera in relation to government procurement not covered by Chapter 15 (Government Procurement). For procurement covered by Chapter 15 (Government Procurement), Malaysia reserves the right to accord Bumiputera status to eligible companies and shall apply the following measures under the Bumiputera policy:

(a) set aside procurement of construction services contracts for Bumiputera up to 30 per cent of the total annual value of construction services contracts above the threshold from the date of entry into force of this Agreement for Malaysia; and

(b) price preferences for:

(i) Category 1:

Bumiputera suppliers providing goods and services originating from any Party, according to the following schedule:

(ii) Category 2:

Bumiputera suppliers providing goods and services originating from non-Parties, according to the following schedule:

(iii) Category 3:

Bumiputera manufacturers that produce goods, according to the following schedule:

3. Procuring entities shall accord price preference for Category 2 to Malaysian suppliers (other than Bumiputera) and suppliers of other Parties providing goods and services originating from any Party.

4. Malaysia reserves the right to adopt or maintain any measure in relation to the procurement of items under Central Contract as described below:

(a) postal and courier services;

(b) envelopes;

(d) environmentally friendly fire extinguisher including its related system;

(e) Microsoft products and services under a Master Licensing Agreement; and (f) small arms ammunition and pyrotechnic devices.

5. Panel Contract shall be applied in a manner consistent with obligations under Chapter 15 (Government Procurement) with respect to the covered procurement set out in this Schedule.

6. Any measure to benefit micro, small and medium enterprises (SMEs) shall be applied in a manner consistent with obligations under Chapter 15 (Government Procurement) with respect to the covered procurement set out in this Schedule.

7. For greater certainty, Chapter 15 (Government Procurement) shall not apply to:

(a) any procurement made by a covered entity on behalf of a non-covered entity; and

(b) procurement funded by grants and sponsorship payments from persons not listed in this Schedule.

SECTION H: Threshold Adjustment Formula

2. Every two years, Malaysia shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Malaysian Ringgit (RM). These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Malaysian Ringgit in terms of the Special Drawing Rights (SDR) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect and rounded to the nearest Malaysian Ringgit.

4. Malaysia shall notify the other Parties of the current thresholds in Malaysian Ringgit immediately after the date of entry into force of this Agreement for Malaysia, and the adjusted thresholds in Malaysian Ringgit thereafter in a timely manner.

5. Malaysia shall consult if a major change in Malaysian Ringgit relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurement is published on the following websites:

Ministry of Finance Malaysia: www.treasury.gov.my

ePerolehan: www.eperolehan.gov.my

SECTION J: Transitional Measures

Thresholds

1. Transitional thresholds for goods, services and construction services:

(a) Section A

(b) Section C

2. Chapter 15 (Government Procurement) shall not apply to any procurement funded by an economic stimulus package in response to a severe nationwide economic crisis implemented within 25 years after the date of entry into force of this Agreement for Malaysia.

Domestic Review Procedures

3. Notwithstanding Article 15.19 (Domestic Review), Malaysia may delay application of its obligations under Article 15.19 for three years after the date of entry into force of this Agreement for Malaysia. During this transitional period, Malaysia shall use existing internal administrative procedures to address complaints, provided that it complies with Article 15.4.1 (General Principles) and Article 15.4.2. Suppliers of any Party may submit complaints to the Ministry of Finance at the address below:

Under Secretary of Government Procurement Division

Government Procurement Division

Ministry of Finance

Ministry of Finance Complex

Precinct 2

62592 Putrajaya

Malaysia

Email: gpcompliance@treasury.gov.my

Tel: +603-8882 4376

Fax: +603-8882 4290

Dispute Settlement Mechanism

4. Notwithstanding Chapter 28 (Dispute Settlement), Malaysia shall not be subject to dispute settlement with respect to its obligations under Chapter 15 (Government Procurement) for a period of five years following the date of entry into force of this Agreement for Malaysia. During this transitional period, Malaysia shall enter into consultations with any Party that raises concerns with Malaysia's implementation of these obligations.

Offsets

5. Notwithstanding Article 15.4.6 (General Principles), Malaysia may delay application of its obligations under Article 15.4.6 on offsets for a period of 12 years following the date of entry into force of this Agreement for Malaysia.

6. During the transitional period, offsets may be applied as follows:

(a) to procurement with a value of more than RM50,000,000;

(b) to procurement conducted by the procuring entities listed under:

(i) Ministry of Agriculture and Agro-Based Industry (Kementerian Pertanian dan Industri Asas Tani);

(ii) Ministry of Communication and Multimedia (Kementerian Komunikasi dan Multimedia);

(iii) Ministry of Defence (Kementerian Pertahanan);

(iv) Ministry of Education (Kementerian Pendidikan);

(v) Ministry of Energy, Green Technology and Water (Kementerian Tenaga, Teknologi Hijau dan Air);

(vi) Ministry of Finance (Kementerian Kewangan);

(vii) Ministry of Health (Kementerian Kesihatan);

(viii) Ministry of Higher Education (Kementerian Pengajian Tinggi);

(ix) Ministry of Home Affairs (Kementerian Dalam Negeri);

(x) Ministry of Natural Resources and Environment (Kementerian Sumber Asli dan Alam Sekitar);

(xi) Ministry of Rural and Regional Development (Kementerian Kemajuan Luar Bandar dan Wilayah);

(xii) Ministry of Science, Technology and Innovation (Kementerian Sains, Teknologi dan Inovasi);

(xiii) Ministry of Transport (Kementerian Pengangkutan);

(xiv) Ministry of Urban Wellbeing, Housing and Local Government (Kementerian Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan);

(xv) Ministry of Works (Kementerian Kerja Raya);

(xvi) Ministry of Youth and Sports (Kementerian Belia dan Sukan);

(xvii) Prime Minister's Department (Jabatan Perdana Menteri);

(c) upon the date of entry into force of this Agreement for Malaysia, the procuring entities may impose offsets as set out in Malaysia's offsets policy with credit value up to 60 per cent equivalent to procurement contract value until the end of the fourth year;

(d) the procuring entities will continue imposing offsets with credit value up to 40 per cent equivalent to procurement contract value until the end of the eighth year; and

(e) the procuring entities will continue imposing offsets with credit value up to 20 per cent equivalent to procurement contract value until the end of the 12th year.

7. From the 13th year following the date of entry into force of this Agreement for Malaysia, the requirement for offsets will not be applied with regard to covered procurement.

8. Malaysia will ensure that its procuring entities clearly indicate the existence of any offsets requirements in the tender notices and specify the offsets programme required in the tender documentation.

ANNEX 15-A

SCHEDULE OF MEXICO

SECTION A: Central Government Entities

Thresholds:

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by entities listed in this Section, in accordance with the following thresholds and subject to Section H:

US$79,507 Goods and Services

US$10,335,931 Construction Services

List of Entities:

1. Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación (Ministry of Agriculture, Livestock, Rural Development, Fisheries and Feeding), includes:

(a) Agencia de Servicios a la Comercialización y Desarrollo de Mercados Agropecuarios (Support Services for Agricultural Marketing)

(b) Comisión Nacional de Acuacultura y Pesca (National Commission of Aquaculture and Fisheries)

(c) Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias (National Forestry, Agriculture and Cattle Research Institute)

(d) Instituto Nacional de Pesca (National Institute of Fisheries)

(e) Servicio de Información Agroalimentaria y Pesquera (Information Service and Agro-alimentary and Fisheries Statistics)

(f) Servicio Nacional de Inspección y Certificación de Semillas (National Service of Inspection and Certification of Seeds)

(g) Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria (National Service of Health, Innocuous and Agro-alimentary Quality)

2. Secretaría de Comunicaciones y Transportes (Ministry of Communication and Transportation), includes:

(a) Instituto Mexicano del Transporte (Mexican Institute of Transportation)

(b) Servicios a la Navegación en el Espacio Aéreo Mexicano (Mexican Air Navigation Services)

3. Secretaría de la Defensa Nacional (Ministry of National Defense)

4. Secretaría de Desarrollo Agrario, Territorial y Urbano (Ministry of Agrarian Territorial and Urban Development), includes:

(a) Comisión Nacional de Vivienda (National Housing Commission)

(b) Procuraduría Agraria (Agrarian Office of the Attorney)

5. Secretaría de Desarrollo Social (Ministry of Social Development), includes:

(a) Coordinación Nacional de PROSPERA (National Coordination PROSPERA)

(b) Instituto Nacional de Desarrollo Social (National Institute for Social Development)

6. Secretaría de Economía (Ministry of Economy), includes:

(a) Comisión Federal de Mejora Regulatoria (Federal Commission of Regulatory Improvement)

(b) Instituto Nacional de la Economía Social (National Institute for Social Economy)

7. Secretaría de Educación Pública (Ministry of Public Education), includes:

(a) Administración Federal de Servicios Educativos en el Distrito Federal (Federal Administration of Educational Services in Mexico City)

(b) Comisión de Apelación y Arbitraje del Deporte (Arbitration and Appeal Committee for Sport)

(d) Consejo Nacional para la Cultura y las Artes (National Council for Culture and Arts)

(e) Instituto Nacional de Antropología e Historia (National Institute of Anthropology and History)

(f) Instituto Nacional de Bellas Artes y Literatura (National Institute of Fine Arts and Literature)

(g) Instituto Nacional del Derecho de Autor (National Institute for Copyrights)

(h) Instituto Nacional de Estudios Históricos de las Revoluciones de Mexico (National Institute of Historical Studies of Mexican Revolutions)

(i) Instituto Politécnico Nacional (National Polytechnic Institute)

(j) Radio Educación (Radio Education)

(k) Universidad Pedagógica Nacional (National Pedagogical University)

8. Secretaría de Energía (Ministry of Energy), includes:

(a) Comisión Nacional de Seguridad Nuclear y Salvaguardias (National Commission on Nuclear Safety and Safeguards)

(b) Comisión Nacional para el Uso Eficiente de la Energía (National Commission for Energy Conservation)

9. Secretaría de la Función Pública (Ministry of Public Administration), includes:

(a) Instituto de Administración y Avalúos de Bienes Nacionales (Institute for Administration and Appraisal of National Property)

10. Secretaría de Gobernación (Ministry of Government), includes:

(a) Archivo General de la Nación (General Archives of the Nation)

(b) Centro Nacional de Prevención de Desastres (National Disaster Prevention Center)

(c) Centro de Producción de Programas Informativos y Especiales (Production Center for Informative Programs and Specials)

(d) Comisión Nacional para Prevenir y Erradicar la Violencia contra las Mujeres (National Commission to Prevent and Eradicate Violence against Women)

(e) Coordinación General de la Comisión Mexicana de Ayuda a Refugiados (General Coordination of the Mexican Commission on Refugee Assistance)

(f) Instituto Nacional de Migración (National Institute of Migration)

(g) Instituto Nacional para el Federalismo y el Desarrollo Municipal (National Institute for Federalism and Municipal Development)

(h) Policía Federal (Federal Police)

(i) Prevención y Readaptación Social (Prevention and Social Readaptation) (j) Secretariado Ejecutivo del Sistema Nacional de Seguridad Pública (Executive Secretariat of the Public Security National System)

(k) Secretaría General del Consejo Nacional de Población (General Secretary of the National Population Council)

(l) Secretaría Técnica de la Comisión Calificadora de Publicaciones y Revistas Ilustradas (Technical Secretary of Illustrated Periodicals and Publications Examining Commission)

(m)Secretaría Técnica del Consejo de Coordinación para la Implementación del Sistema de Justicia Penal (Technical Secretary of the Coordination Council for the Implementation of the Criminal Justice System)

11. Secretaría de Hacienda y Crédito Público (Ministry of Finance and Public Credit), includes:

(a) Comisión Nacional Bancaria y de Valores (National Banking and Securities Commission)

(b) Comisión Nacional de Seguros y Fianzas (National Commission of Insurance and Guarantees)

(d) Servicio de Administración y Enajenación Bienes (Assets Management and Disposition Agency)

(e) Servicio de Administración Tributaria (Tax Administration Service) 12. Secretaría de Marina (Ministry of Navy)

13. Secretaría de Medio Ambiente y Recursos Naturales (Ministry of Environment and Natural Resources), includes:

(a) Comisión Nacional de Áreas Naturales Protegidas (National Commission on Natural Protected Areas)

(b) Instituto Mexicano de Tecnología del Agua (Mexican Water Technology Institute)

(d) Procuraduría Federal de Protección al Ambiente (Federal Attorney's Office for Environmental Protection)

14. Secretaría de Relaciones Exteriores (Ministry of Foreign Relations), includes:

(a) Agencia Mexicana de Cooperación Internacional para el Desarrollo (Mexican International Cooperation Agency for Development)

(b) Instituto de los Mexicanos en el Exterior (Institute for Mexicans Abroad) (c) Instituto Matías Romero (Matías Romero Institute)

15. Secretaría de Salud (Ministry of Health), includes:

(a) Administración del Patrimonio de la Beneficencia Pública (Public Charity Fund Administration)

(b) Centro Nacional de Equidad de Género y Salud Reproductiva (National Centre of Reproductive Health and Gender Equity)

(d) Centro Nacional de Programas Preventivos y Control de Enfermedades (National Center for Prevention and Disease Control)

(e) Centro Nacional de Trasplantes (National Transplants Center)

(f) Centro Nacional de la Transfusión Sanguínea (National Blood Transfusion Center)

(g) Centro Nacional para la Prevención y Control de las Adicciones (National Center for Prevention and Addiction Control)

(h) Centro Nacional para la Prevención y Control del VIH/SIDA (National Center for the Prevention and Control of HIV/AIDS)

(i) Centro Nacional para la Salud de la Infancia y la Adolescencia (National Center for Health of Childhood and Adolescence)

(j) Comisión Federal para la Protección contra Riesgos Sanitarios (Federal Commission for Protection Against Health Risks)

(k) Comisión Nacional de Arbitraje Médico (National Commission of Medical Arbitration)

(l) Comisión Nacional de Bioética (National Commission of Bioethics

(m)Comisión Nacional de Protección Social en Salud (National Commission of Social Health Protection)

(n) Instituto Nacional de Rehabilitación (National Rehabilitation Institute) (o) Laboratorios de Biológicos y Reactivos de México, S.A. de C.V. (Laboratories of Biologicals and Reagents of Mexico)

(p) Servicios de Atención Psiquiátrica (Psychiatric Attention Services)

16. Secretaría del Trabajo y Previsión Social (Ministry of Labor and Social Welfare), includes:

(a) Comité Nacional Mixto de Protección al Salario (Joint National Committee for Wage Protection)

(b) Procuraduría Federal de la Defensa del Trabajo (Office of the Federal Attorney for Labor Defense)

17. Secretaría de Turismo (Ministry of Tourism), includes:

(a) Corporación de Servicios al Turista Ángeles Verdes (Ángeles Verdes Corporation for Tourist Services)

(b) Instituto de Competitividad Turística (Institute for Tourist Competitiveness)

18. Procuraduría General de la República (Office of the Attorney General of the Republic)

19. Centro de Ingeniería y Desarrollo Industrial (Engineering and Industrial Development Center)

20. Comisión Nacional de Libros de Texto Gratuitos (National Commission of Free Textbooks)

21. Comisión Nacional de las Zonas Áridas (National Commission on Arid Zones)

22. Consejo Nacional de Fomento Educativo (National Educational Development Council)

Note to Section A

English translation of entities listed in this Section is only provided for the purposes of reference; it is not an official translation.

SECTION B: Sub-Central Government Entities

None.

SECTION C: Other Entities

Thresholds:

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by the entities listed in this Section, in accordance with the following thresholds and subject to Section H:

List of Other Entities:

1. Aeropuerto Internacional de la Ciudad de México, S.A. de C.V. (International Airport of México City)

2. Aeropuertos y Servicios Auxiliares (ASA) (Airports and Auxiliary Services)

3. Caminos y Puentes Federales de Ingresos y Servicios Conexos (CAPUFE) (Federal Toll Roads and Bridges and Related Services)

4. Centro de Integración Juvenil, A.C (Youth Integration Centers)

5. Comisión Federal de Electricidad (CFE) (Federal Electricity Commision)

6. Comisión Nacional del Agua (National Water Commision)

7. Comisión Nacional Forestal (National Forestry Commision)

8. Comisión Nacional para el Desarrollo de los Pueblos Indigenas (National Commision for the Development of Indigenous People)

9. Comisión para la Regularización de la Tenencia de la Tierra (Commision for the Regularization of Land Tenure)

10. Consejo Nacional de Ciencia y Tecnología (CONACYT) (National Science and Technology Council)

11. Consejo de Promoción Turística de México, S.A. de C.V. (México Tourism Board)

12. Distribuidora Impulsora Comercial de Conasupo S.A. de C.V. (Diconsa) (Commercial Distributor and Trade Prmotion)

13. Ferrocarril del Istmo de Tehuantepec, S.A. de C.V. (Railroad of the Itsmo de Tehuatepec)

14. Grupo Aeroportuario de la Ciudad de México S.A. de C.V. (Airport Group of México City)

15. Instituto Mexicano de Cinematografía (Mexican Institute of Cinematography)

16. Instituto Mexicano de la Juventud (Mexican Youth Institute)

17. Instituto Mexicano del Seguro Social (IMSS) (Mexican Social Security Institute)

18. Instituto Nacional de la Infraestructura Física Educativa (National Institute of Physical Educational Infrastructure)

19. Instituto Nacional de las Mujeres (Women National Institute)

20. Instituto Mexicano de la Propiedad Industrial (Mexican Institute of Industrial Property)

21. Instituto Nacional de las Personas Adultas Mayores (Natiotal Institute for the Elderly)

22. Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE) (Social Security and Services for Government Employees Institute)

23. Instituto de Seguridad Social para las Fuerzas Armadas Mexicanas (Social Security for the Mexican Armed Forces Institute)

24. Instituto Nacional para la Educación de los Adultos (National Institute for Adult Education)

25. Leche Industrializada Conasupo S.A. de C.V. (Liconsa) (No incluye la compra de bienes agricolas adquiridos para programas de apoyo a la agricultura o bienes para la alimentacion humana) (Conasupo Industrialized Milk) (Not including procurements of agricultural goods made in furtherance of agricultural support programs or human feeding programs)

26. Lotería Nacional para la Asistencia Pública (National Lottery for Public Assistance)

27. NOTIMEX S.A. de C.V.

28. Petróleos Mexicanos (PEMEX) (Mexican Petroleum) (No inlcuye las compras de combustibles y gas) (Not including procurements of fuels or gas)

(a) PEMEX Corporativo (PEMEX Corporative)

(b) PEMEX Exploración y Producción (PEMEX exploration and Production)

(d) PEMEX Gas y Petroquímica Básica (PEMEX Gas and Basic Petrochemical)

(e) PEMEX Petroquímica (PEMEX Petrochemical)

29. Procuraduría Federal del Consumidor (Federal Office of The Attorney for Consumers)

30. Pronósticos para la Asistencia Pública (Forecasting for Public Assistance)

31. Servicio Aeroportuario de la Ciudad de México, S.A. de C.V. (Airport Services of México City)

32. Servicio Geológico Mexicano (Mexican Geological Service)

33. Servicio Postal Mexicano (Mexican Postal Services)

34. Sistema Nacional para el Desarrollo Integral de la Familia (DIF) (No inluye las compras de bienes agricolas adquiridos para programas de apoyo a la agricultura o bienes para la alimentacion humana) (National System for Integral Family Development) (Not including procurements of agricultural goods made in furtherance of agricultural support programs or human feeding programs).

35. Talleres Gráficos de México (National Printers of Mexico)

36. Telecomunicaciones de México (TELECOM) (Telecommunications of México)

Notes to Section C

1. English translation of entities listed in this Section is only provided for the purposes of reference; it is not an official translation.

2. For Brunei, Malaysia, New Zealand and Viet Nam, Chapter 15 (Government Procurement) shall not apply to procurement by entities listed in this Section.

SECTION D: Goods

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover all goods that are procured by the entities listed in Sections A and C. However, for procurement by the Secretaría de la Defensa Nacional (Ministry of National Defense) and the Secretaría de Marina (Ministry of Navy) only the following goods are included in the coverage of Chapter 15 (Government Procurement):

(Note: numbers refer to the Federal Supply Classification (FSC)codes)

FSC Description

22 Railway equipment

23 Ground effect vehicles, motor vehicles, trailers and cycles (except buses in 2310; and military trucks and trailers in 2320 and 2330 and tracked combat, assault and tactical vehicles in 2350)

24 Tractors

25 Vehicular equipment components

26 Tires and tubes

29 Engine accessories

30 Mechanical power transmission equipment

32 Woodworking machinery and equipment

34 Metal-working machinery

35 Service and trade equipment

36 Special industry machinery

37 Agricultural machinery and equipment

38 Construction, mining, excavating, and highway maintenance equipment

39 Materials handling equipment

40 Rope, cable, chain, and fittings

41 Refrigeration, air conditioning, and air circulating equipment

42 Firefighting, rescue, and safety equipment; and environmental protection equipment and materials

43 Pumps and compressors

44 Furnace, steam plant, and drying equipment; and nuclear reactors

45 Plumbing, heating, and waste disposal equipment

46 Water purification and sewage treatment equipment

47 Pipe, tubing, hose, and fittings

48 Valves

49 Maintenance and repair shop equipment

52 Measuring tools

53 Hardware and abrasives

54 Prefabricated structures and scaffolding

55 Lumber, millwork, plywood, and veneer

56 Construction and building materials

61 Electric wire, and power and distribution equipment

62 Lighting fixtures and lamps

63 Alarm, signal and security detection systems

65 Medical, dental, and veterinary equipment and supplies

66 Instruments and laboratory equipment

67 Photographic equipment

68 Chemicals and chemical products

69 Training aids and devices

70 Automatic data processing equipment (including firmware), software, supplies and support equipment

71 Furniture

72 Household and commercial furnishings and appliances

73 Food preparation and serving equipment

74 Office machines, text processing systems and visible record equipment

75 Office supplies and devices

76 Books, maps, and other publications (except 7650: drawings and specifications)

77 Musical instruments, phonographs, and home-type radios

78 Recreational and athletic equipment

79 Cleaning equipment and supplies

80 Brushes, paints, sealers, and adhesives

81 Containers, packaging, and packing supplies

85 Toiletries

87 Agricultural supplies

88 Live animals

91 Fuels, lubricants, oils, and waxes

93 Nonmetallic fabricated materials

94 Nonmetallic crude materials

96 Ores, minerals, and their primary products (except 9620: minerals, natural and synthetic)

99 Miscellaneous

SECTION E: Services

Chapter 15 (Government Procurement) shall not cover the procurement of the following services identified in accordance with the North American Free trade Agreement (NAFTA) Common Classification System, Appendix 1001.1b-2-B of NAFTA that are procured by entities listed in Sections A and C:

Notes to Section E

1. The provisions of Chapter 15 (Government Procurement) shall not apply to the operation of government facilities under concessions.

2. All services related to goods acquired by the Secretaría de la Defensa Nacional (Ministry of National Defense) and the Secretaría de Marina (Ministry of Navy) that are not covered by Chapter 15 (Government Procurement), shall be excluded.

3. All services that are not excluded from the coverage of Chapter 15 (Government Procurement) shall be subject to Chapter 10 (Cross-Border Trade in Services) and Annex I and Annex II of this Agreement.

4. The management and operating services contracts awarded to research and development centers operating with federal funds, or related to the implementation of research programmes sponsored by the government shall be excluded from the disciplines of Chapter 15 (Government Procurement).

5. Chapter 15 (Government Procurement) shall not apply to the procurement of transportation services that are part of, or are incidental to a purchase contract.

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall apply to all construction services procured by the entities listed in Sections A and C, identified in Division 51 of the United Nations Provisional Central Product Classification (CPC Prov) which can be found at: http://unstats.un.org/unsd/cr/registry/regcs.asp?Cl=9&Lg=1&Co=51, unless otherwise specified in Chapter 15 (Government Procurement) including this Schedule.

SECTION G: General Notes

The following General Notes shall apply to Chapter 15 (Government Procurement), including Sections A through F:

Transitional Provisions1

PEMEX, CFE and Non-Energy Construction

1. Mexico may set aside from the obligations of Chapter 15 (Government Procurement) for each calendar year following the date of entry into force of this Agreement for Mexico the respective percentage specified in paragraph 2 of:

(a) the total value of procurement contracts for goods and services and any combination thereof and construction services procured by PEMEX in the year that are above the thresholds set out in Section C;

(b) the total value of procurement contracts for goods and services and any combination thereof and construction services procured by CFE in the year that are above the thresholds set out in Section C; and

(c) the total value of procurement contracts for construction services procured in the year that are above the thresholds set out in Section A, excluding procurement contracts for construction services procured by PEMEX and CFE.

2. The percentages referred to in paragraph 1 are as follows:

3. The value of procurement contracts that are financed by loans from regional and multilateral financial institutions shall not be included in the calculation of the total value of procurement contracts under paragraphs 1 and 2.

4. Mexico shall ensure that the total value of the procurement contracts under any single FSC class (or other classification system agreed by the Parties) that are set aside by PEMEX or CFE under paragraphs 1 and 2 for any calendar year does not exceed 15 per cent of the total value of the procurement contracts that may be set aside by PEMEX or CFE for that year.

Pharmaceuticals

5. Until January 1 of the ninth calendar year following the entry into force of this Agreement for Mexico, Chapter 15 (Government Procurement) shall not apply to the procurement by the Secretaría de Salud (Ministry of Health), IMSS, ISSSTE, Secretaría de la Defensa Nacional (Ministry of National Defense) and the Secretaría de Marina (Ministry of Navy) of drugs that are not currently patented in Mexico or whose Mexican patents have expired. Nothing in this paragraph shall prejudice protection of intellectual property rights under Chapter 18 (Intellectual Property).

Permanent Provisions

6. Chapter 15 (Government Procurement) shall not apply to procurements made:

(a) with a view to commercial resale by government owned retail stores;

(b) by one entity from another entity of Mexico; or

7. Chapter 15 (Government Procurement) shall not apply to public utility services (including telecommunication, transmission, water and energy services).

8. Chapter 15 (Government Procurement) shall not apply to any transportation services including: land transportation (CPC 71); water transport (CPC 72); air transport (CPC 73); supporting and auxiliary transport (CPC 74); post and telecommunication (CPC 75); repair services of other transport equipment, on a fee or contractual basis (CPC 8868).

9. Chapter 15 (Government Procurement) shall not apply to build-operate-transfer contracts and public works concessions contracts.

10. Notwithstanding any provision in Chapter 15 (Government Procurement), Mexico may set aside procurement contracts from the obligations of Chapter 15 (Government Procurement), subject to the following:2

(a) the total value of the contracts set aside may not exceed the Mexican peso equivalent of:

(i) US$1,340,000,000 in each year until December 31 of the ninth calendar year following the date of entry into force of this Agreement for Mexico, which may be allocated by all entities except PEMEX and CFE;

(ii) US$2,230,000,000 in each year beginning January 1 of the tenth calendar year following the date of entry into force of this Agreement for Mexico, which may be allocated by all entities;

(b) the total value of contracts under any single FSC class (or other classification system agreed by the Parties) that may be set aside under this paragraph in any year shall not exceed 10 per cent of the total value of contracts that may be set aside under this paragraph for that year;

(c) no entity subject to subparagraph (a) may set aside contracts in any calendar year of a value of more than 20 per cent of the total value of contracts that may be set aside for that year; and

(d) the total value of the contracts set aside by PEMEX or CFE may not exceed the Mexican peso equivalent of US$892,000,000 in each calendar year, beginning January 1 of the 10th year following the date of entry into force of this Agreement for Mexico.

11. (a) Beginning in January of the next calendar year after the date of entry into force of this Agreement for Mexico, the dollar values referred to in paragraph 10 shall be adjusted annually for cumulative inflation from the date of entry into force of this Agreement for Mexico, based on the implicit price deflator for the United States Gross Domestic Product (USGDP) or any successor index published by the Council of Economic Advisors in "Economic Indicators".

(b) The dollar values adjusted for cumulative inflation up to January of each calendar year following 2015 shall be equal to the original dollar values multiplied by the ratio of:

(i) the implicit USGDP price deflator or any successor index published by the Council of Economic Advisors in "Economic Indicators", current as of January of that year, to

(ii) the implicit USGDP price deflator or any successor index published by the Council of Economic Advisors in "Economic Indicators", current as of the date of entry into force of this Agreement for Mexico, provided that the price deflators under subparagraphs (i) and (ii) have the same base year.

12. The national security exception provided for in Article 29.2 (Security Exceptions) shall cover procurements made in support of safeguarding nuclear materials or technology.

13. (a) Notwithstanding any provision of Chapter 15 (Government Procurement), an entity may impose a local content requirement of no more than:

(i) 40 per cent, for labour-intensive turnkey or major integrated projects; or (ii) 25 per cent, for capital-intensive turnkey or major integrated projects.

(b) For the purposes of this paragraph, "turnkey or major integrated project" means, in general, a construction, supply or installation project undertaken by a person pursuant to a right granted by an entity with respect to which:

(i) the prime contractor is vested with the authority to select the general contractors or subcontractors;

(ii) neither the Government of Mexico nor its entities fund the project;

(iii) the person bears the risks associated with non-performance; and

(iv) the facility will be operated by an entity or through a procurement contract of that entity.

14. In the event that Mexico exceeds in any given year the total value of contracts it may set aside for that year in accordance with paragraph 10 of its Permanent Provisions or paragraphs 1, 2 and 4 of its Transitional Provisions, Mexico shall consult with the other Parties with a view to agreement on compensation in the form of additional procurement opportunities during the following year. The consultations shall be without prejudice to the rights of any Party under Chapter 28 (Dispute Settlement).

15. Nothing in Chapter 15 (Government Procurement) shall be construed to require PEMEX to enter into risk-sharing contracts.

16. Chapter 15 (Government Procurement) shall not apply to contracts to be awarded to cooperatives and rural or urban unprivileged groups that the government branch or entity agreed directly with them in accordance with laws and regulations existing at the time of the entry into force of this Agreement for Mexico.

17. For greater certainty, Chapter 15 (Government Procurement) shall be interpreted in accordance with the following:

(a) where a contract to be awarded by a procuring entity is not covered by Chapter 15 (Government Procurement), Chapter 15 shall not be construed to cover any good or service component of that contract;

(b) any exclusion that is related either specifically or generally to a procuring entity shall also apply to any successor entity in such a manner as to maintain the value of this offer; and

(c) Chapter 15 (Government Procurement) shall not cover procurement by a procuring entity on behalf of another entity where the procurement would not be covered by Chapter 15 if it were conducted by the other entity itself.

SECTION H: Thresholds Adjustment Formula

1. Notwithstanding the threshold values set out in sections A and C, in order to provide equivalence to the current value of the thresholds applied in the context of the NAFTA, Mexico shall, from the date of entry into force of this Agreement for Mexico, apply the NAFTA thresholds, as may be amended, instead of those mentioned in Sections A and C.

2. Mexico shall calculate and convert the value of the thresholds into Mexican pesos using the conversion rate of the Banco de México (Bank of Mexico). Its conversion rate shall be the existing value of the Mexican peso in terms of the U.S. dollar as of December 1 and June 1 of each year, or the first working day thereafter. The conversion rate as of December 1 shall apply from January 1 to June 30 of the following year, and the conversion rate as of June 1 shall apply from July 1 to December 31 of that year.

3. Information related with thresholds shall be published in www.compranet.gob.mx

SECTION I: Procurement Information

Information on government procurement shall be published in the following websites: www.dof.gob.mx

www.compranet.gog.mx

www.pemex.com

www.cfe.gob.mx

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF NEW ZEALAND

SECTION A: Central Government Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the central government entities listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2 (Scope), to equal or exceed:

List of Entities:

1. Canterbury Earthquake Recovery Authority

2. Crown Law Office

3. Department of Conservation

4. Department of Corrections

5. Department of Internal Affairs

6. Department of the Prime Minister and Cabinet

7. Education Review Office

8. Government Communications Security Bureau

9. Inland Revenue Department

10. Land Information New Zealand

11. Ministry of Business, Innovation and Employment

12. Ministry for Culture and Heritage

13. Ministry of Defence

14. Ministry of Education

15. Ministry for the Environment

16. Ministry of Foreign Affairs and Trade

17. Ministry of Health

18. Ministry of Justice

19. Ministry of Māori Development

20. Ministry for Pacific Peoples

21. Ministry for Primary Industries

22. Ministry of Social Development

23. Ministry of Transport

24. Ministry for Women

25. New Zealand Customs Service

26. New Zealand Defence Force

27. New Zealand Police

28. Serious Fraud Office

29. State Services Commission

30. Statistics New Zealand

31. The Treasury

Note to Section A

All agencies subordinate to the above listed central government entities are covered, provided that an agency does not have a separate legal personality.

SECTION B: Sub-Central Government Entities

None.

SECTION C: Other Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the other government entities listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2 (Scope), to equal or exceed:

List of Entities:

1. Careers New Zealand

2. Civil Aviation Authority of New Zealand

3. Education New Zealand

4. Energy Efficiency and Conservation Authority

5. Maritime New Zealand

6. New Zealand Antarctic Institute

7. New Zealand Fire Service Commission

8. New Zealand Trade and Enterprise

9. Sport New Zealand (excluding procurement of goods and services containing confidential information related to enhancing competitive sport performance)

10. Tertiary Education Commission

Notes to Section C

1. For the entities listed in this Section, Chapter 15 (Government Procurement) shall cover only those entities listed and does not extend to subordinate or subsidiary agencies.

2. New Zealand does not offer coverage for entities listed in this Section to Mexico.

SECTION D: Goods

Chapter 15 (Government Procurement) shall apply to all goods procured by the entities listed in Sections A and C of this Schedule, unless otherwise specified in Chapter 15 (Government Procurement), including this Schedule.

SECTION E: Services

Chapter 15 (Government Procurement) shall apply to all services procured by the entities listed in Sections A and C of this Schedule unless otherwise specified in Chapter 15 (Government Procurement), except the following:

(a) procurement of research and development services;1

(b) procurement of public health, education and welfare services;2and

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall apply to all construction services3procured by the entities listed in Sections A and C of this Schedule unless otherwise specified in Chapter 15 (Government Procurement), except for procurement not covered as set out in Section G of this Schedule.

SECTION G: General Notes

1. Chapter 15 (Government Procurement) shall not apply to:

(a) any procurement by an entity covered under this Schedule from another entity covered under this Schedule;

(b) procurement of goods or services in respect of contracts for construction, refurbishment or furnishing of chanceries abroad;

(d) any procurement for the purposes of developing, protecting or preserving national treasures of artistic, historic, archaeological value or cultural heritage; or

(e) procurement of storage or hosting of government data and related services based on storage or processing outside the territory of New Zealand to protect government information as described in Article 14.2.3(b) (Scope and General Provisions).

2. For greater certainty, Chapter 15 (Government Procurement) shall be interpreted in accordance with the following:

(a) a procuring entity may apply limited tendering procedures under Article 15.10.2(b) (Limited Tendering) or Article 15.10.2(g) in relation to unsolicited unique proposals;5

(b) with reference to Article 15.2.2(d) (Scope), Chapter 15 (Government Procurement) shall not apply to any procurement made by a procuring entity covered under this Schedule on behalf of an organisation that is not covered under this Schedule;

(c) with reference to Article 15.2.2 (Scope), Chapter 15 (Government Procurement) shall not apply to commercial sponsorship arrangements; and

(d) with reference to Article 15.2.2 (Scope), Chapter 15 (Government Procurement) shall not apply to governmental provision of goods and services.

SECTION H: Threshold Adjustment Formula

2. Every two years, New Zealand shall calculate and publish the value of the thresholds under this Schedule expressed in New Zealand dollars. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the New Zealand dollar in terms of the Special Drawing Rights (SDR) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect.

4. New Zealand shall consult if a major change in its national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

The information to be published under this Chapter 15 (Government Procurement) will be published as follows:

New procurement opportunities: www.gets.govt.nz

Procurement policy and practice: www.procurement.govt.nz New Zealand legislation: www.legislation.govt.nz

ANNEX 15-A – NEW ZEALAND – 10

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF PERU

SECTION A: Central Government Entities

Thresholds:

95,000 SDR Goods

95,000 SDR Services

5,000,000 SDR Construction Services

List of Entities:

Unless otherwise specified herein, Chapter 15 (Government Procurement) shall cover all agencies subordinate to the entities listed in this Section.

1. Banco Central de Reserva del Perú (Central Reserve Bank of Peru)

2. Congreso de la República del Perú (Congress of the Republic of Peru)

3. Consejo Nacional de la Magistratura (National Council of Magistrates)

4. Contraloría General de la República (Comptroller General's Office of the Republic)

5. Defensoría del Pueblo (Office of the People's Ombudsperson)

6. Jurado Nacional de Elecciones (National Electoral Board)

7. Ministerio de Agricultura y Riego (Ministry of Agriculture and Irrigation) 8. Ministerio del Ambiente (Ministry of Environment)

9. Ministerio de Comercio Exterior y Turismo (Ministry of Foreign Trade and Tourism)

10. Ministerio de Cultura (Ministry of Culture)

11. Ministerio de Defensa (Ministry of Defense) (Note 1)

12. Ministerio de Economía y Finanzas (Ministry of Economy and Finance) (Note 2)

13. Ministerio de Educación (Ministry of Education)

14. Ministerio de Energía y Minas (Ministry of Energy and Mining)

15. Ministerio de Justicia y Derechos Humanos (Ministry of Justice and Human Rights)

16. Ministerio de la Mujer y Poblaciones Vulnerables (Ministry of the Woman and Vulnerable Populations)

17. Ministerio de la Producción (Ministry of Production)

18. Ministerio de Relaciones Exteriores (Ministry of Foreign Affairs)

19. Ministerio de Salud (Ministry of Health)

20. Ministerio de Trabajo y Promoción del Empleo (Ministry of Labour and Employment Development)

21. Ministerio de Transportes y Comunicaciones (Ministry of Transport and Communications)

22. Ministerio de Vivienda, Construcción y Saneamiento (Ministry of Housing, Construction and Sanitation)

23. Ministerio del Interior (Ministry of Interior) (Note 1)

24. Ministerio Público (Prosecutor's Ministry)

25. Oficina Nacional de Procesos Electorales (National Office of Electoral Processes)

26. Poder Judicial (Judicial Power)

27. Presidencia del Consejo de Ministros (Presidency of the Council of Ministers)

28. Registro Nacional de Identificación y Estado Civil (National Registry of Identification and Marital Status)

29. Seguro Social de Salud (ESSALUD) (Health Insurance) (Note 3)

30. Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones (AFPs) (Superintendence of Banking, Insurance and Private Administrators of Pension Funds (AFPs))

31. Superintendencia Nacional de Educación Superior Universitaria (National Superintendence of University Education)

32. Tribunal Constitucional (Constitutional Tribunal)

Notes to Section A

1. Ministerio de Defensa and Ministerio del Interior (Ministry of Defense and Ministry of Interior): Chapter 15 (Government Procurement) shall not cover the procurement of clothing/apparel (HS 6205) and footwear (HS 64011000) by the Army, Navy, Air Force or National Police of Peru.

2. Ministerio de Economía y Finanzas (Ministry of Economy and Finance): Chapter 15 (Government Procurement) shall not cover the procurement by the Agency for the Promotion of Private Investment (Agencia de Promoción de la Inversión Privada (PROINVERSION)) of technical, legal, financial, economic or similar consulting services, which are necessary to promote private investment through the granting of concessions or other means such as capital increase, joint ventures, service, leasing and management contracts.

3. Seguro Social de Salud (ESSALUD) (Health Insurance): Chapter 15 (Government Procurement) shall not cover the procurement of sheets (HS 6301) and blankets (HS 6302).

SECTION B: Sub-Central Government Entities

Thresholds:

200,000 SDR Goods

200,000 SDR Services

5,000,000 SDR Construction Services

List of Entities:

Chapter 15 (Government Procurement) shall cover procurement only by those entities listed in this Section.

1. Gobierno Regional de Amazonas (Regional Government of Amazonas)

2. Gobierno Regional de Ancash (Regional Government of Ancash)

3. Gobierno Regional de Arequipa (Regional Government of Arequipa)

4. Gobierno Regional de Ayacucho (Regional Government of Ayacucho)

5. Gobierno Regional de Apurímac (Regional Government of Apurimac)

6. Gobierno Regional de Cajamarca (Regional Government of Cajamarca)

7. Gobierno Regional del Callao (Regional Government of Callao)

8. Gobierno Regional de Cusco (Regional Government of Cusco)

9. Gobierno Regional de Ica (Regional Government of Ica)

10. Gobierno Regional de Huancavelica (Regional Government of Huancavelica)

11. Gobierno Regional de Huánuco (Regional Government of Huanuco)

12. Gobierno Regional de Junín (Regional Government of Junin)

13. Gobierno Regional de la Libertad (Regional Government of La Libertad)

14. Gobierno Regional de Lambayeque (Regional Government of Lambayeque)

15. Gobierno Regional de Lima (Regional Government of Lima)

16. Gobierno Regional de Loreto (Regional Government of Loreto)

17. Gobierno Regional de Madre de Dios (Regional Government of Madre de Dios)

18. Gobierno Regional de Moquegua (Regional Government of Moquegua)

19. Gobierno Regional de Pasco (Regional Government of Pasco)

20. Gobierno Regional de Piura (Regional Government of Piura)

21. Gobierno Regional de Puno (Regional Government of Puno)

22. Gobierno Regional de San Martín (Regional Government of San Martin)

23. Gobierno Regional de Tacna (Regional Government of Tacna)

24. Gobierno Regional de Tumbes (Regional Government of Tumbes)

25. Gobierno Regional de Ucayali (Regional Government of Ucayali)

Note to Section B

Peru offers the entities listed under this Section with respect to:

(a) those Parties that assume equivalent commitments at the same level of government; and

(b) those Parties that are original signatories and do not have sub-central government entities.

SECTION C: Other Entities

Threshold:

160,000 SDR Goods

160,000 SDR Services

5,000,000 SDR Construction Services

List of Entities:

1. Agro Banco (Agriculture Bank)

2. Banco de la Nación (National Bank)

3. Compañía de Negociaciones Mobiliarias e Inmobiliarias S.A. (Negotiation Company of Real Estate and Movable Property)

4. Corporación Financiera de Desarrollo S.A. (Financial Corporation of Development) 5. Corporación Peruana de Aeropuertos y Aviación Civil S.A. (CORPAC) (Peruvian Corporation of Airports and Civil Aviation)

6. Electricidad del Perú S.A. (ELECTROPERU) (Electricity Company of Peru)

7. Empresa Eléctrica del Sur S.A. (Electricity Company of the South)

8. Empresa de Administración de Infraestructura Eléctrica S.A. (Administration Company of Electric Infrastructure)

9. Empresa de Generación Eléctrica de Machupicchu (Hydro Power Company of Machupicchu)

10. Empresa Nacional de la Coca S.A. (ENACO) (National Company of the Coca)

11. Empresa Nacional de Puertos S.A. (ENAPU) (Peru National Harbors Company)

12. Empresa Peruana de Servicios Editoriales (Peruvian Company of Publishing Services)

13. Empresa Regional de Servicios Públicos de Electricidad del Oriente (Regional Company of Electricity Public Services of the Orient)

14. Empresa Regional de Servicios Públicos de Electricidad del Sur Este S.A. (Regional Company of Electricity Public Services of the South East)

15. PERUPETRO

16. Petróleos del Perú (PETROPERU) (Peru's Oil Company) (Note)

17. Servicio de Agua Potable y Alcantarillado de Lima (SEDAPAL) (Potable Water and Sewerage Service of Lima)

18. Servicio Industrial de la Marina (SIMA) (Naval Industrial Services)

19. Servicios Postales del Perú S.A (Peru Postal Services)

20. Sociedad Eléctrica del Sur Oeste (Electric Company of the South West)

Note to Section C

Petróleos del Perú (PETROPERU) (Peru's Oil Company): Chapter 15 (Government Procurement) shall not cover the procurement of the following goods:

(a) Crude Petroleum

(b) Gasoline

(d) Diesel oil

(e) Butane

(f) Low sulfur medium distillation or Gasoil

(g) Natural gas

(h) Bio-diesel

(i) Saturated acyclic hydrocarbons

(j) Catalyzers

(k) Ethanol

(l) Additives

SECTION D: Goods

Chapter 15 (Government Procurement) shall apply to all goods procured by the entities listed in Sections A, B and C, subject to the Notes to the respective Sections, and Section G.

SECTION E: Services

Chapter 15 (Government Procurement) shall apply to all services procured by the entities listed in Sections A, B and C, subject to the Notes to the respective Sections, and Section G, except for the services excluded in this Schedule.

Chapter 15 (Government Procurement) shall not cover the procurement of the following services, as elaborated in the Central Product Classification Version 1.1 (for complete listing of Central Product Classification Version 1.1, see http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=16):

CPC 8221 Accounting and financial auditing services

CPC 82191 Arbitration and conciliating services

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall apply to the procurement of all construction services under CPC 51 procured by the procuring entities listed in Sections A, B and C, unless otherwise specified in Chapter 15.

SECTION G: General Notes

Unless otherwise specified herein, the following General Notes shall apply without exception to Chapter 15 (Government Procurement), including all Sections of this Schedule.

1. Chapter 15 (Government Procurement) shall not apply to procurement programmes on behalf of micro and small sized enterprises.

2. Chapter 15 (Government Procurement) shall not apply to the procurement of goods for food assistance programmes.

3. Chapter 15 (Government Procurement) shall not apply to the acquisition of weavings and clothing made with alpaca and llama fibres.

4. Chapter 15 (Government Procurement) shall not apply to procurement by the embassies, consulates, and other missions of the foreign service of Peru, exclusively for their operation and management.

5. For greater certainty, Chapter 15 (Government Procurement) shall not apply to procurement of banking, financial or specialised services related to the following activities:

(a) the incurring of public indebtedness; or

(b) public debt management.

6. Chapter 15 (Government Procurement) shall not apply to procurement by a Peruvian entity of a good or service from another Peruvian entity.

SECTION H: Threshold Adjustment Formula

2. Every two years, Peru shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Soles. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Soles in terms of the Special Drawing Rights (SDR) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect.

4. Peru shall notify the other Parties of the current thresholds in its currency immediately after this Agreement enters into force, and the adjusted thresholds in its currency thereafter in a timely manner.

5. Peru shall consult if a major change in a national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurement is published on the following websites: Legislation and Jurisprudence: www.osce.gob.pe

Procuring opportunities on goods and services: www.seace.gob.pe

Procuring opportunities on BOT contracts and public works concessions contracts: www.proinversion.gob.pe

National Registry of Suppliers (RNP): www.rnp.gob.pe

ANNEX 15-A – PERU – 12

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF SINGAPORE

SECTION A: Central Government Entities

Thresholds:

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by entities listed in this Section, subject to the following thresholds:

130,000 SDR Goods (specified in Section D) 130,000 SDR Services (specified in Section E) 5,000,000 SDR Construction (specified in Section F)

List of Entities:

1. Auditor-General's Office

2. Attorney-General's Chambers

3. Cabinet Office

4. Istana

5. Judicature

6. Ministry of Communication and Information

7. Ministry of Culture, Community and Youth

8. Ministry of Education

9. Ministry of the Environment and Water Resources

10. Ministry of Finance

11. Ministry of Foreign Affairs

12. Ministry of Health

13. Ministry of Home Affairs

14. Ministry of Law

15. Ministry of Manpower

16. Ministry of National Development

17. Ministry of Social and Family Development

18. Ministry of Trade and Industry

19. Ministry of Transport

20. Parliament

21. Presidential Councils

22. Prime Minister's Office

23. Public Service Commission

24. Ministry of Defence

Note: Chapter 15 (Government Procurement) shall generally apply to purchases by the Singapore Ministry of Defence of the following Federal Supply Categories (FSC) of the United States of America (others being excluded) subject to the Government of Singapore's determinations under Article 29.2 (Security Exceptions).

FSC Description

22 Railway Equipment

23 Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles

24 Tractors

25 Vehicular Equipment Components

26 Tires and Tubes

29 Engine Accessories

30 Mechanical Power Transmission Equipment

31 Bearings

32 Woodworking Machinery and Equipment

34 Metalworking Machinery

35 Service and Trade Equipment

36 Special Industry Machinery

37 Agricultural Machinery and Equipment

38 Construction, Mining, Excavating and Highway Maintenance Equipment 39 Materials Handling Equipment

40 Rope, Cable, Chain and Fittings

41 Refrigeration, Air Conditioning and Air Circulating Equipment

42 Fire Fighting, Rescue and Safety Equipment

43 Pumps and Compressors

44 Furnace, Steam Plant and Drying Equipment

45 Plumbing, Heating and Sanitation Equipment

46 Water Purification and Sewage Treatment Equipment

47 Pipe, Tubing, Hose and Fittings

48 Valves

51 Handtools

52 Measuring Tools

53 Hardware and Abrasives

54 Prefabricated Structures and Scaffolding

55 Lumber, Millwork, Plywood and Veneer

56 Construction and Building Materials

61 Electric Wire, and Power and Distribution Equipment

62 Lighting, Fixtures and Lamps

63 Alarm, Signal and Security Detection Systems

65 Medical, Dental and Veterinary Equipment and Supplies

67 Photographic Equipment

68 Chemicals and Chemical Products

69 Training Aids and Devices

70 General Purpose Automatic Data Processing Equipment, Software, Supplies and Support Equipment

71 Furniture

72 Household and Commercial Furnishings and Appliances

73 Food Preparation and Serving Equipment

74 Office Machines, Text Processing Systems and Visible Record Equipment 75 Office Supplies and Devices

76 Books, Maps and other Publications

77 Musical Instruments, Phonographs and Home-Type Radios

78 Recreational and Athletic Equipment

79 Cleaning Equipment and Supplies

80 Brushes, Paints, Sealers and Adhesives

81 Containers, Packaging and Packing Supplies

83 Textiles, Leather, Furs, Apparel and Shoe Findings, Tents and Flags 84 Clothing, Individual Equipment, and Insignia

85 Toiletries

87 Agricultural Supplies

88 Live Animals

89 Subsistence

91 Fuels, Lubricants, Oils and Waxes

93 Non-metallic Fabricated Materials

94 Non-metallic Crude Materials

95 Metal Bars, Sheets and Shapes

96 Ores, Minerals, and their Primary Products

99 Miscellaneous

Notes to Section A

1. Chapter 15 (Government Procurement) shall not apply to any procurement in respect of:

(a) construction contracts for chanceries abroad and headquarters buildings made by the Ministry of Foreign Affairs; and

(b) contracts made by the Internal Security Department, Criminal Investigation Department, Security Branch and Central Narcotics Bureau of the Ministry of Home Affairs as well as procurement that have security considerations made by the Ministry.

2. Unless otherwise specified herein, Chapter 15 (Government Procurement) shall apply to all agencies subordinate to the entities listed in this Section that do not have a legal status that is separate from the listed entities under Singapore's law.

SECTION B: Sub-Central Government Entities

Not applicable for Singapore as Singapore does not have any sub-central government entities.

SECTION C: Other Entities

Thresholds:

Unless otherwise specified, Chapter 15 (Government Procurement) shall cover procurement by the entities listed in this Section, subject to the following thresholds:

400,000 SDR Goods (specified in Section D) 400,000 SDR Services (specified in Section E) 5,000,000 SDR Construction (specified in Section F)

List of Entities:

1. Agency for Science, Technology and Research

2. Board of Architects

3. Building and Construction Authority

4. Casino Regulatory Authority

5. Civil Aviation Authority of Singapore

6. Civil Service College

7. Competition Commission of Singapore

8. Council for Estate Agencies

9. Economic Development Board

10. Health Promotion Board

11. Hotels Licensing Board

12. Housing and Development Board

13. Info–communications Development Authority of Singapore

14. Inland Revenue Authority of Singapore

15. International Enterprise Singapore

16. Land Transport Authority of Singapore

17. Jurong Town Corporation

18. Maritime and Port Authority of Singapore

19. Monetary Authority of Singapore

20. Media Development Authority of Singapore

21. National Arts Council

22. National Library Board

23. National Parks Board

24. Preservation of Monuments Board

25. Professional Engineers Board

26. Public Transport Council

27. Science Centre Board

28. Sentosa Development Corporation

29. Singapore Land Authority

30. Singapore Tourism Board

31. Standards, Productivity and Innovation Board

32. Urban Redevelopment Authority

SECTION D: Goods

Chapter 15 (Government Procurement) shall apply generally to all goods procured by the entities listed in Sections A and C, unless otherwise specified in this Chapter.

SECTION E: Services

The following services as contained in document MTN.GNS/W/120 are covered (others being excluded):

CPC Description

862 Accounting, Auditing and Book-keeping Services

8671 Architectural Services

865 Management Consulting Services

874 Building-Cleaning Services

641-643 Hotels and Restaurants (incl. catering)

74710 Travel Agencies and Tour Operators

7472 Tourist Guide Services

843 Data Processing Services

844 Database Services

932 Veterinary Services

84100 Consultancy Services Related to the Installation of Computer Hardware 84210 Systems and Software Consulting Services

87201 Executive Search Services

87202 Placement services of office support personnel and other workers

87905 Translation and Interpretation Services

7523 Electronic Mail

7523 Voice Mail

7523 On-Line Information and Database Retrieval

7523 Electronic Data Interchange

96112 Motion Picture or Video Tape Production Services

96113 Motion Picture or Video Tape Distribution Services

96121 Motion Picture Projection Services

96122 Video Tape Projection Services

96311 Library Services

8672 Engineering Services

7512 Courier Services

- Biotechnology Services

- Exhibition Services

- Commercial Market Research

- Interior Design Services, Excluding Architecture

- Professional, Advisory and Consulting Services Relating to Agriculture, Forestry, Fishing and Mining, Including Oilfield Services

Notes to Section E

The offer regarding services is subject to the measures listed in Singapore's Schedules to Annex I and Annex II of this Agreement.

SECTION F: Construction Services

The following construction services in the sense of Division 51 of the Central Product Classification as contained in document MTN.GNS/W/120 are covered (others being excluded):

List of construction services covered:

CPC Description

512 General construction work for buildings

513 General construction work for civil engineering

514, 516 Installation and assembly work

517 Building completion and finishing work

511, 515, 518 Others

Notes to Section F

The offer regarding construction services is subject to the measures listed in Singapore's Schedules to Annex I and Annex II of this Agreement.

SECTION G: General Notes

Chapter 15 (Government Procurement) shall not apply to any procurement made by a covered entity on behalf of a non-covered entity.

SECTION H: Threshold Adjustment Formula

1. The thresholds for the procurement of goods and services by entities listed in Sections A and C, and the thresholds for procurement of construction services by entities listed in Sections A and C shall be adjusted in every even-numbered year with each adjustment taking effect on January 1, beginning on January 1 of the first even-numbered year after the date of entry into force of this Agreement for Singapore.

2. The adjustments shall be based on the average of the daily conversion rates of the Singapore currency in terms of the Special Drawing Rights (SDR), published by the International Monetary Fund in its monthly International Financial Statistics over the two-year period preceding October 1 or November 1 of the year prior to the thresholds in Singapore

currency becoming effective which will be from January 1.

3. Singapore shall consult if a major change in its national currency relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

All information on government procurement is published on https://www.gebiz.gov.sg/.

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF THE UNITED STATES

SECTION A: Central Government Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to the entities of the central level of government listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2.8 (Scope) and Article 15.2.9, to equal or exceed:

(a) for procurement of goods and services: 130,000 SDRs; and

(b) for procurement of construction services: 5,000,000 SDRs.

The thresholds set out in this paragraph shall be adjusted in accordance with Section H of this Schedule.

2. Unless otherwise specified herein, Chapter 15 (Government Procurement) shall apply to all agencies subordinate to the entities listed in this Section.

List of Entities:

1. Advisory Council on Historic Preservation

2. African Development Foundation

3. Alaska Natural Gas Transportation System

4. American Battle Monuments Commission

5. Appalachian Regional Commission

6. Broadcasting Board of Governors

7. Commission of Fine Arts

8. Commission on Civil Rights

9. Commodity Futures Trading Commission

10. Consumer Product Safety Commission

11. Corporation for National and Community Service

12. Court Services and Offender Supervision Agency for the District of Columbia

13. Delaware River Basin Commission

14. Denali Commission

15. Department of Agriculture (Note 1)

16. Department of Commerce (Note 2)

17. Department of Defense (Note 3)

18. Department of Education

19. Department of Energy (Note 4)

20. Department of Health and Human Services

21. Department of Homeland Security (Note 5)

22. Department of Housing and Urban Development

23. Department of the Interior, including the Bureau of Reclamation

24. Department of Justice

25. Department of Labor

26. Department of State

27. Department of Transportation (Note 6)

28. Department of the Treasury

29. Department of Veterans Affairs

30. Environmental Protection Agency

31. Equal Employment Opportunity Commission

32. Executive Office of the President

33. Export-Import Bank of the United States

34. Farm Credit Administration

35. Federal Communications Commission

36. Federal Crop Insurance Corporation

37. Federal Deposit Insurance Corporation

38. Federal Election Commission

39. Federal Energy Regulatory Commission

40. Federal Home Loan Mortgage Corporation

41. Federal Housing Finance Agency

42. Federal Labor Relations Authority

43. Federal Maritime Commission

44. Federal Mediation and Conciliation Service

45. Federal Mine Safety and Health Review Commission 46. Federal Prison Industries, Inc.

47. Federal Reserve System

48. Federal Retirement Thrift Investment Board

49. Federal Trade Commission

50. General Services Administration (Note 7)

51. Government National Mortgage Association

52. Holocaust Memorial Council

53. Inter-American Foundation

54. Merit Systems Protection Board

55. Millennium Challenge Corporation

56. National Aeronautics and Space Administration

57. National Archives and Records Administration

58. National Assessment Governing Board

59. National Capital Planning Commission

60. National Council on Disability

61. National Credit Union Administration

62. National Endowment for the Arts

63. National Endowment for the Humanities

64. National Foundation on the Arts and the Humanities

65. National Labor Relations Board

66. National Mediation Board

67. National Science Foundation

68. National Transportation Safety Board

69. Nuclear Regulatory Commission

70. Occupational Safety and Health Review Commission

71. Office of Government Ethics

72. Office of Personnel Management

73. Office of Special Counsel

74. Overseas Private Investment Corporation

75. Peace Corps

76. Railroad Retirement Board

77. Securities and Exchange Commission

78. Selective Service System

79. Small Business Administration

80. Smithsonian Institution

81. Social Security Administration

82. Susquehanna River Basin Commission

83. U.S. Marine Mammal Commission

84. United States Access Board

85. United States Agency for International Development

86. United States International Trade Commission

Notes to Section A

1. Department of Agriculture: Chapter 15 (Government Procurement) shall not cover procurement of any agricultural good made in furtherance of an agricultural support program or a human feeding program.

2. Department of Commerce: Chapter 15 (Government Procurement) shall not cover procurement of any good or service related to the shipbuilding activities of the U.S. National Oceanic and Atmospheric Administration.

3. Department of Defense:

(a) Chapter 15 (Government Procurement) shall not cover procurement of any good described in any Federal Supply Code classification (for complete listing of U.S. Federal Supply Classification, see any of the following Federal Supply Code (FSC), which can be found in the Product Code Section of the Federal Procurement Data System Product and Service Code Manual at https://www.acquisition.gov) listed below:

FSC Description

FSC 11 Nuclear Ordnance

FSC 18 Space Vehicles

FSC 19 Ships, Small Craft, Pontoons and Floating Docks (the part of this classification defined as naval vessels or major components of the hull or superstructure thereof)

FSC 20 Ship and Marine Equipment (the part of this classification defined as naval vessels or major components of the hull or superstructure thereof)

FSC 2310 Passenger Motor Vehicles (only buses)

FSC 2350 Combat, Assault & Tactical Vehicles, Tracked

FSC 51 Hand Tools

FSC 52 Measuring Tools

FSC 60 Fiber Optics Materials, Components, Assemblies and Accessories

FSC 8140 Ammunition & Nuclear Ordnance Boxes, Packages & Special Containers

FSC 83 Textiles, Leather, Furs, Apparel, Shoes, Tents and Flags (all elements other than pins, needles, sewing kits, flagstaffs, flagpoles and flagstaff trucks)

FSC 84 Clothing, Individual Equipment and Insignia (all elements other than sub-class 8460 - luggage)

FSC 89 Subsistence (all elements other than sub-class 8975- tobacco products)

(b) Chapter 15 (Government Procurement) shall not cover procurement of any specialty metal or any good containing one or more specialty metals. Specialty metal means:

(i) steel for which the maximum alloy content exceeds one or more of the following levels: manganese, 1.65 per cent; silicon, 0.60 per cent; or copper, 0.60 per cent;

(ii) steel that contains more than 0.25 per cent of any of the following elements: aluminum, chromium, cobalt, columbium, molybdenum, nickel, titanium, tungsten or vanadium;

(iii) a metal alloy consisting of a nickel, iron-nickel or cobalt base alloy that contains a total of other alloying metals (except iron) in excess of 10 per cent;

(iv) titanium or a titanium alloy; or

(v) zirconium or a zirconium base alloy.

(c) Chapter 15 (Government Procurement) generally shall not cover procurement of any good described in any of the following FSC classifications, due to the application of Article 29.2 (Security Exceptions):

FSC Description

FSC 10 Weapons

FSC 12 Fire Control Equipment

FSC 13 Ammunitions and Explosives

FSC 14 Guided Missiles

FSC 15 Aircraft and Airframe Structural Components

FSC 16 Aircraft Components and Accessories

FSC 17 Aircraft Launching, Landing and Ground Handling Equipment

FSC 19 Ships, Small Craft, Pontoons and Floating Docks

FSC 20 Ship and Marine Equipment

FSC 28 Engines, Turbines and Components

FSC 31 Bearings

FSC 58 Communications, Detection and Coherent Radiation

FSC 59 Electrical and Electronic Equipment Components

FSC 95 Metal Bars, Sheets and Shapes

4. Department of Energy: Due to the application of Article 29.2 (Security Exceptions), Chapter 15 (Government Procurement) shall not cover procurement of:

(a) any good or service that supports the safeguarding of nuclear materials or technology, where the Department of Energy conducts the procurement under the authority of the Atomic Energy Act; or

(b) any oil purchase related to the Strategic Petroleum Reserve.

5. Department of Homeland Security:

(a) Chapter 15 (Government Procurement) shall not cover procurement by the Transportation Security Administration of FSC 83 (Textiles, Leather, Furs, Apparel, Shoes, Tents and Flags) and FSC 84 (Clothing, Individual Equipment and Insignia).

(b) The national security considerations applicable to the Department of Defense shall apply equally to the U.S. Coast Guard.

6. Department of Transportation: Chapter 15 (Government Procurement) shall not cover procurement by the Federal Aviation Administration.

7. General Services Administration: Chapter 15 (Government Procurement) shall not cover procurement of any good in any of the following FSC classifications:

FSC Description

FSC 51 Hand Tools

FSC 52 Measuring Tools

FSC 7340 Cutlery and Flatware

8. For goods and services including construction services of Japan and suppliers of such goods and services, Chapter 15 (Government Procurement) shall not cover procurement by the National Aeronautics and Space Administration.

9. For goods and services, including construction services, of Viet Nam and suppliers of such goods and services, Chapter 15 (Government Procurement) shall apply only to the following entities for the Department of Defense:

Department of Defense Education Activity

Defense Commissary Agency

The United States is prepared to amend this Note at such time as coverage with respect to the Ministry of National Defense can be resolved with Viet Nam.

SECTION B: Sub-Central Government Entities

None.

SECTION C: Other Entities

Thresholds:

1. Chapter 15 (Government Procurement) shall apply to the other covered entities listed in this Section where the value of the procurement is estimated, in accordance with Article 15.2.8 (Scope) and Article 15.2.9, to equal or exceed:

(a) for procurement of goods and services: US$250,000; and

(b) for procurement of construction services: 5,000,000 SDRs

The monetary threshold set out in subparagraph (b) shall be adjusted in accordance with Section H of this Schedule.

2. Unless otherwise specified herein, Chapter 15 (Government Procurement) shall apply only to the entities listed in this Section.

List of Entities:

1. Tennessee Valley Authority

2. Bonneville Power Administration

3. Western Area Power Administration

4. Southeastern Power Administration

5. Southwestern Power Administration

6. St. Lawrence Seaway Development Corporation

7. Rural Utilities Service (Note 1)

Notes to Section C

1. The Rural Utilities Service shall not impose any domestic purchase requirement as a condition of its financing of any power generation or telecommunication project that exceeds the thresholds specified above. The Rural Utilities Service undertakes no other commitments with respect to its financing of power generation and telecommunications projects.

2. For goods and services, including construction services, of Malaysia and suppliers of such goods and services, Chapter 15 (Government Procurement) shall not cover procurement by entities listed in this Section that are responsible for the generation or distribution of electricity, including the commitment with respect to financing provided by the Rural Utilities Service of power generation projects described in Note 1 to this Section.

SECTION D: Goods

Chapter 15 (Government Procurement) shall cover all goods procured by the entities listed in Sections A and C, subject to the Notes to the respective Sections and the General Notes.

SECTION E: Services

Chapter 15 (Government Procurement) shall cover all services procured by the entities listed in Sections A and C, subject to the Notes to the respective Sections, the General Notes and the Notes to this Section, except for the services excluded in the Schedule of a Party.

Notes to Section E

1. Chapter 15 (Government Procurement) shall not cover procurement of any of the following services, as identified in accordance with the Provisional Central Product Classification (CPC), which is found at: http://unstats.un.org/unsd/cr/registry/regcst.asp?C1=9&Lg=1:

(a) All transportation services, including Launching Services (CPC Categories 71, 72, 73, 74, 8859, 8868).

(b) Operation of Government-Owned Facilities:

All facilities operated by the Department of Defense, Department of Energy and the National Aeronautics and Space Administration; and

for all entities listed in Sections A and C of this Schedule, Research and Development facilities.

(d) Research and development.

2. Chapter 15 (Government Procurement) shall not cover procurement of any service in support of military forces located overseas.

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall cover all construction services procured by the entities listed in Sections A and C, listed in Division 51 of the Provisional Central Product Classification (CPC), which is found at: http://unstats.un.org/unsd/cr/registry/regcs.asp?C1=9&Lg=51, subject to the Notes to the respective Sections, the General Notes and the Notes to this Section, except for the construction services excluded in the Schedule of a Party.

Note to Section F

Chapter 15 (Government Procurement) shall not cover procurement of dredging services.

SECTION G: General Notes

Unless otherwise specified herein, the following General Notes shall apply without exception to Chapter 15 (Government Procurement), including to all sections of this Schedule.

1. Chapter 15 (Government Procurement) shall not apply to any set-aside on behalf of a small- or minority-owned business. A set-aside may include any form of preference, such as the exclusive right to provide a good or service, or any price preference.

2. Except as specified otherwise in this Schedule, Chapter 15 (Government Procurement) shall not apply to non-contractual agreements or any form of government assistance, including governmental provision of goods and services to persons or governmental authorities not specifically covered under this Schedule.

3. Where a contract is to be awarded by an entity that is not covered by Chapter 15 (Government Procurement), Chapter 15 shall not be construed to cover any good or service component of that contract.

4. Chapter 15 (Government Procurement) shall not cover procurement of transportation services that form a part of, or are incidental to, a procurement contract.

SECTION H: Threshold Adjustment Formula

1. Any threshold denominated in Special Drawing Rights (SDRs) shall be adjusted in every even-numbered year, with each adjustment taking effect on January 1, beginning on January 1 of the first even-numbered year after the date of entry into force of this Agreement for the United States.

2. The adjustments shall be based on an average of the daily conversion rates of the U.S. dollar in terms of SDRs, published by the IMF in its monthly International Financial Statistics, for the two-year period preceding October 1 or November 1 of the year before the adjusted thresholds are to take effect.

3. The Parties shall consult if any major change in a national currency relative to SDRs or another Party's currency creates a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

Publications utilised by the United States for the publication of notices of intended procurement and of post-award notices and the publication annually of information on permanent lists of qualified suppliers in the case of selective tendering procedures:

Federal Business Opportunities (http://www.fedbizopps.gov)

Laws, regulations, judicial decisions, administrative rulings and procedures regarding government procurement for entities listed in Section A are published on the following websites:

US Federal Laws (primarily US Code Titles 10 and 41):

http://www.gpo.gov/fdsys/browse/collectionUScode.action?collectionCode=USCODE Federal Acquisition Regulation (FAR): http://www.acquisition.gov/far/index.html

Agency Supplemental Regulations:

http://www.acquisition.gov/agency_supp_regs.asp

Federal Register: https://www.federalregister.gov/

Federal Government Procurement Policies:

http://www.whitehouse.gov/omb/procurement/

Bid Protest Decisions of Government Accountability Office:

http://www.gao.gov/legal/bidprotest.html

US Civilian Board of Contract Appeals Decisions: http://www.cbca.gsa.gov/ Judicial Decisions:

US Court of Federal Claims (jurisdiction includes claims related to government contracts, including bid protests): http://www.uscfc.uscourts.gov/

US Court of Appeals for the Federal Circuit (jurisdiction includes appeals from the US Civilian Boards of Contract Appeals): http://www.cafc.uscourts.gov/

Laws, judicial decisions, administrative rulings and procedures regarding government procurement for entities listed in Section C are available directly from the listed entities.

SECTION J: Transitional Measures

None.

ANNEX 15-A

SCHEDULE OF VIET NAM

SECTION A: Central Government Entities

Chapter 15 (Government Procurement) shall apply to the entities of the central level of government listed in this Section where the value of the procurement is estimated to equal or exceed the following thresholds.

Thresholds:

1. Goods and Services

- From the date of entry into force of this Agreement for Viet Nam to the end of the fifth year following the date of entry into force of this Agreement for Viet Nam: 2,000,000 SDR

- From the beginning of the sixth year to the end of the 10thyear following entry into force of this Agreement for Viet Nam: 1,500,000 SDR

- From the beginning of the 11th year to the end of the 15thyear following the entry into force of this Agreement for Viet Nam: 1,000,000 SDR

- From the beginning of the 16thyear to the end of the 20thyear following the entry into force of this Agreement for Viet Nam: 260,000 SDR

- From the beginning of the 21styear to the end of the 25thyear following the entry into force of this Agreement for Viet Nam: 190,000 SDR

- From the beginning of the 26thyear following entry into force of this Agreement for Viet Nam: 130,000 SDR

2. Construction services

- From the date of entry into force of this Agreement for Viet Nam to the end of the fifth year following entry into force of this Agreement for Viet Nam: 65,200,000 SDRs

- From the beginning of the sixth year to the end of the 10th year following entry into force of this Agreement for Viet Nam: 32,600,000 SDRs

- From the beginning of the 11th year to the end of the 15th year following entry into force of this Agreement for Viet Nam: 16,300,000 SDRs

- From the beginning of the 16th year following entry into force of this Agreement for Viet Nam: 8,500,000 SDRs

List of Entities:

1. Ministry of Justice (Bộ Tư pháp)

(a) Department of Criminal and Administrative Legislation (Vụ Pháp luật hình sự - hành chính)

(b) Department of Economic-Civil Legislation (Vụ Pháp luật dân sự - kinh tế)

(d) Department of Legal Dissemination and Education (Vụ Phổ biến, giáo dục pháp luật)

(e) Agency of Judicial Support (Cục Bổ trợ tư pháp)

(f) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(g) Ministry Inspectorate (Thanh tra Bộ)

(h) Department of Emulation and Commendation (Vụ Thi đua – Khen thưởng)

(i) Department of International Cooperation (Vụ Hợp tác quốc tế)

(j) Department of General Affairs on Legislative Development (Vụ Các vấn đề chung về xây dựng pháp luật)

(k) Agency of National Legal Aid (Cục Trợ giúp pháp lý)

(l) Agency of Child Adoption (Cục Con nuôi)

(m) Department of Planning and Finance (Vụ Kế hoạch – Tài chính)

(n) Directorate of Civil Judgement Enforcement (Tổng cục Thi hành án dân sự)

(o) Agency of Examination of Legal Normative Documents (Cục Kiểm tra văn bản quy phạm pháp luật)

(p) Agency of National Registry of Secured Transactions (Cục Đăng ký quốc gia giao dịch bảo đảm)

(q) Agency of Information Technology (Cục Công nghệ thông tin)

(r) Ministry Office (Văn phòng Bộ)

(s) Agency of National Compensation (Cục bồi thường nhà nước)

(t) The South Agency (Cục Công tác phía Nam)

(u) Agency of Administrative Procedure Control (Cục Kiểm soát thủ tục hành chính)

(v) Agency of Civil Status, Nationality and Authentication (Cục Hộ tịch, quốc tịch, chứng thực)

2. Ministry of Planning and Investment (Bộ Kế hoạch và Đầu tư)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of Emulation and Reward (Vụ Thi đua khen thưởng) (e) Department of Cooperatives (Vụ Hợp tác xã)

(f) Department of Finance and Monetary (Vụ Tài chính tiền tệ)

(g) Department of National Economic Issues (Vụ Tổng hợp kinh tế quốc dân)

(h) Public Procurement Agency (Cục Quản lý đấu thầu)

(i) Department of Industrial Economy (Vụ Kinh tế công nghiệp)

(j) Department of Agricultural Economy (Vụ Kinh tế nông nghiệp) (k) Department of Service Economy (Vụ Kinh tế dịch vụ)

(l) Department of Infrastructure and Urban Centers (Vụ Kết cấu hạ tầng và đô thị)

(m) Department of Economic Zones Management (Vụ Quản lý các khu kinh tế)

(n) Department of Investment Supervision & Appraisal (Vụ Giám sát và Thẩm định đầu tư)

(o) Department of Planning Management (Vụ Quản lý quy hoạch)

(p) Department of Local and Territorial Economy (Vụ Kinh tế địa phương và lãnh thổ)

(q) Department of Foreign Economic Relations (Vụ Kinh tế đối ngoại)

(r) Department of Labor, Culture and Social Affairs (Vụ Lao động, Văn hóa, Xã hội)

(s) Department of Science,Education, Natural Resources and Environment (Vụ Khoa học, Giáo dục, Tài nguyên và Môi trường)

(t) Enterprise Development Agency (Cục Phát triển doanh nghiệp)

(u) Foreign Investment Agency (Cục Đầu tư nước ngoài)

(v) Business Registration Management Agency (Cục Quản lý đăng ký kinh doanh)

(w) Ministry Office, including Representative Offices in Ho Chi Minh and Da Nang city (Văn phòng Bộ, kể cả các VPĐD ở Thành phố Hồ Chí Minh và Đà Nẵng)

(x) National Defense - Security Department (Vụ Quốc phòng – An ninh)

(y) General Statistics Office (Tổng cục Thống kê)

3. Ministry of Labour, War Invalids and Social Affairs (Bộ Lao động, Thương binh và Xã hội)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Department of Legal Affairs (Vụ Pháp chế)

(d) Department of Social Insurance (Vụ Bảo hiểm xã hội)

(e) Department of Gender Equality (Vụ Bình đẳng giới)

(f) Department of Labour-Salary (Vụ Lao động – Tiền lương)

(g) Department of International Cooperation (Vụ Hợp tác quốc tế)

(h) Agency of Overseas Labour (Cục Quản lý lao động ngoài nước)

(i) Agency of Occupational Safety and Health (Cục An toàn lao động)

(j) Agency of Employment (Cục Việc làm)

(k) Agency of Children Protection and Care (Cục Bảo vệ, chăm sóc trẻ em)

(l) Department of Planning – Finance (Vụ Kế hoạch – Tài chính)

(m) Agency of the People with Special Contributions to the Country (Cục Người có công)

(n) Agency of Social Evil Prevention (Cục Phòng, chống tệ nạn xã hội)

(o) Agency of Social Protection (Cục Bảo trợ xã hội)

(p) Ministry Office (Văn phòng Bộ)

(q) Directorate of Vocational Training (Tổng Cục dạy nghề)

4. Ministry of Culture, Sports and Tourism (Bộ Văn hóa, Thể thao và Du lịch)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of Science, Technology and Environment (Vụ Khoa học, Công nghệ và Môi trường)

(e) Agency of International Cooperation (Cục Hợp tác quốc tế)

(f) Agency of Cultural Heritage (Cục Di sản văn hóa)

(g) Department of Training Managemen(Vụ Đào tạo t)

(h) Directorate of Viet Nam National Administration of Tourism (Tổng cục Du lịch)

(i) Department of Emulation and Reward (Vụ Thi đua khen thưởng)

(j) Agency of Art, Photography and Exhibition (Cục Mỹ thuật, Nhiếp ảnh và Triển lãm)

(k) Department of Family (Vụ Gia đình)

(l) Department of Ethnic Culture (Vụ Văn hóa dân tộc)

(m) Department of Library (Vụ Thư viện)

(n) Department of Planning and Finance (Vụ Kế hoạch – Tài chính)

(o) Ministry Office, including Representative Offices in Da Nang city (Văn phòng Bộ kể cả VPĐD ở Đà Nẵng)

(p) South Agency (Cục Công tác phía Nam)

(q) Agency of Performing Arts (Cục Nghệ thuật biểu diễn)

(r) Cinema Agency (Cục Điện ảnh)

(s) Agency of Copyright (Cục Bản quyền tác giả)

(t) Agency of Grassroots Culture (Cục Văn hóa cơ sở)

(u) Directorate of Physical Training and Sports (Tổng cục Thể dục thể thao)

(v) The Management Unit of the Culture and Tourism Village of Vietnamese ethnics (Ban Quản lý Làng Văn hóa – Du lịch các dân tộc Việt Nam)

5. Ministry of Science and Technology (Bộ Khoa học và Công nghệ)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of International Cooperation (Vụ Hợp tác quốc tế)

(e) Department of Social and Natural Sciences (Vụ Khoa học xã hội và Tự nhiên)

(f) Department of Science and Technology for Economic Technical Branches (Vụ Khoa học và Công nghệ các ngành Kinh tế - Kỹ thuật)

(g) Department of High Technology (Vụ Công nghệ cao)

(h) Department of Technology Appraisal, Examination and Assessment (Vụ Đánh giá, Thẩm định và Giám định công nghệ )

(i) Department of Planning and General Affairs (Vụ Kế hoạch – Tổng hợp)

(j) Technology Application and Development Agency (Cục Ứng dụng và phát triển công nghệ)

(k) Agency of National Office of Intellectual Property of Viet Nam (Cục Sở hữu trí tuệ)

(l) Ministry Office (Văn phòng Bộ)

(m) The South Agency (Cục Công tác phía Nam)

(n) Directorate of Standards and Quality (Tổng Cục Tiêu chuẩn đo lường Chất lượng)

(o) Office of State-Level Key Programs (Văn phòng các chương trình trọng điểm cấp Nhà nước)

(p) Department of Finance (Vụ Tài chính)

(q) Department of Emulation and Reward (Vụ Thi đua - Khen thưởng)

(r) Department of Local Science and Technology Development (Vụ Phát triển khoa học và công nghệ địa phương)

(s) National Agency for Technology Entrepreneurship and Commercialization Development (Cục Phát triển thị trường và doanh nghiệp khoa học và công nghệ)

(t) National Agency for Scientific and Technological Information (Cục Thông tin khoa học và Công nghệ quốc gia)

(u) Viet Nam Agency for Radiation and Nuclear Safety and Control (Cục An toàn bức xạ và Hạt nhân)

(v) Viet Nam Atomic Energy Commission (Cục Năng lượng nguyên tử)

(w) The Management Board of Hoa Lac Hi-Tech Park (Ban Quản lý Khu công nghệ cao Hoà Lạc)

6. Ministry of Finance (Bộ Tài chính)

(a) Agency of Price Control (Cục Quản lý giá)

(b) Agency of Corporate Finance (Cục Tài chính Doanh nghiệp)

(d) Agency of Public Asset Management (Cục Quản lý Công sản)

(e) Department of State Budget (Vụ Ngân sách nhà nước)

(f) Department of Investment (Vụ Đầu tư)

(g) Department of Finance for National Defense and Security (Vụ I (Vụ Tài chính, Quốc phòng, An ninh đặc biệt))

(h) Department of Public Expenditure (Vụ Tài chính hành chính sự nghiệp)

(i) Department of Tax Policy (Vụ Chính sách thuế)

(j) Department of Banking and Financial Institutions (Vụ Tài chính các Ngân hàng và tổ chức tài chính)

(k) Department of Accounting and Auditing Regulations (Vụ chế độ kế toán và kiểm toán)

(l) Department of International Cooperation (Vụ Hợp tác quốc tế)

(m) Legal Affairs Department (Vụ Pháp chế)

(n) Department of Personnel and Training (Vụ Tổ chức cán bộ)

(o) Department of Emulation and Commendation (Vụ Thi đua - Khen thưởng)

(p) Ministry Inspectorate (Thanh tra Bộ)

(q) Insurance Supervisory Agency (Cục Quản lý, giám sát Bảo hiểm)

(r) Agency of Planning and Finance (Cục Kế hoạch tài chính)

(s) Ministry Office, including Representative Offices in HoChiMinh city (Văn phòng Bộ, kể cả Văn phòng đại diện tại Thành phố Hồ Chí Minh)

(t) State Securities Commission (Ủy ban Chứng khoán Nhà nước)

(u) General Department of State Reserves (Tổng cục dự trữ nhà nước)

(v) State Treasury (Kho bạc Nhà nước)

(w) General Department of Customs (Tổng cục Hải quan)

(x) General Department of Taxation (Tổng cục Thuế)

(y) Agency of Financial Informatics and Statistics (Cục Tin học và Thống kê tài chính)

7. Ministry of Construction (Bộ Xây dựng)

(a) Department of International Cooperation (Vụ Hợp tác quốc tế)

(b) Department of Science, Technology and Environment (Vụ Khoa học công nghệ và môi trường)

(d) Legal Affairs Department (Vụ Pháp chế)

(e) Department of Architecture and Construction Planning (Vụ Quy hoạch – kiến trúc)

(f) Ministry Inspectorate (Thanh tra Bộ)

(g) Department of Construction Economics (Vụ Kinh tế xây dựng)

(h) Urban Development Agency (Cục Phát triển đô thị)

(i) Department of Building Materials (Vụ Vật liệu xây dựng)

(j) Department of Planning and Finance (Vụ Kế hoạch tài chính)

(k) Agency of Construction Activity Management (Cục Quản lý hoạt động xây dựng)

(l) Agency of Technical – Infrastructure (Cục Hạ tầng kỹ thuật)

(m) State Agency of Construction Quality Inspection (Cục Giám định nhà nước về chất lượng công trình xây dựng)

(n) Management Agency for Housing and Real-estate Market (Cục Quản lý nhà và thị trường Bất động sản)

(o) Ministry Office (Văn phòng Bộ)

(p) The South Agency (Cục công tác phía Nam)

(q) Enterprises Management Department (Vụ Quản lý doanh nghiệp)

8. Ministry of Information and Communications (Bộ Thông tin và Truyền thông)

(a) Department of Posts (Vụ Bưu chính)

(b) Department of Information Technology (Vụ Công nghệ thông tin)

(d) Department of International Cooperation (Vụ Hợp tác quốc tế)

(e) Legal Affairs Department (Vụ Pháp chế)

(f) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(g) Department of Planning and Finance (Vụ Kế hoạch - Tài chính)

(h) Ministry Inspectorate (Thanh tra Bộ)

(i) Ministry Office, including Representative Offices in DaNang city (Văn phòng Bộ, kể cả Văn phòng đại diện tại Đà Nẵng)

(j) Agency of Radio Frequency Management (Cục Tần số vô tuyến điện)

(k) Agency of Telecommunications (Cục Viễn thông)

(l) Agency of Computerization (Cục Tin học hóa)

(m) Agency of Press (Cục Báo chí)

(n) Agency of Publication, Print and release (Cục Xuất bản, In và Phát hành)

(o) Agency of Broadcasting and Electronic Information (Cục Phát thanh, truyền hình và thông tin điện tử)

(p) The South Agency (Cục Công tác phía Nam)

(q) Agency of Foreign Information Service (Cục Thông tin đối ngoại)

(r) Enterprises Management Department (Vụ Quản lý doanh nghiệp)

(s) Department of Emulation and Reward (Vụ Thi đua khen thưởng)

(t) Department of Fundamental Information (Vụ Thông tin cơ sở)

(u) Central Post Agency (Cục bưu điện Trung ương)

(v) Agency of Information Security (Cục An toàn thông tin)

9. Viet Nam Social Security (Bảo hiểm Xã hội Việt Nam)

(a) Department of fund investment and management (Ban Đầu tư quỹ)

(b) Administration Office, including Representative Office in HoChiMinh city (Văn phòng, bao gồm Văn phòng đại diện tại Thành phố Hồ Chí Minh)

(d) Department of Implementation of Health Insurance Policies (Ban Thực hiện chính sách Bảo hiểm y tế)

(e) Department of Issuance of Books and Cards (Ban Sổ, Thẻ)

(f) Department of Propaganda (Ban Tuyên truyền)

(g) Department of International Cooperation (Ban Hợp tác quốc tế)

(h) Department of Emulation and Reward (Ban Thi đua – Khen thưởng)

(i) Department of Legislation (Ban Pháp chế)

(j) Department of Personnel and Organization (Ban Tổ chức cán bộ)

(k) Department of Money Collection (Ban Thu)

(l) Department of Finance and Accounting (Ban Tài chính – Kế toán)

(m) Department of Planning and Investment (Ban Kế hoạch và Đầu tư)

(n) Department of Pharmaceutics (Ban Dược và Vật tư y tế)

(o) Department of Inspection (Ban Kiểm tra)

(p) Department of Internal Audit (Ban Kiểm toán nội bộ)

10. Government Inspectorate (Thanh tra Chính phủ)

(a) Department of Personnel and Organization (Vụ Tổ chức Cán bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of sector-based Economic Inspection (Dep.I) (Vụ thanh tra khối kinh tế ngành (Vụ I))

(e) Department of Internal Affairs and General Economic Inspection (Dep.II) (Vụ thanh tra khối nội chính và kinh tế tổng hợp (Vụ II))

(f) Department of Socio-Cultural Inspection (Dep.III) (Vụ thanh tra khối văn hóa xã hội (Vụ III))

(g) Agency of Settlement of Complaints-Denunciations and Inspection for region 1 (Agency I) ( Cục giải quyết khiếu nại tố cáo và thanh tra khu vực 1 (Cục I))

(h) Agency of Settlement of Complaints-Denunciations and Inspection for region 2 (Agency II) ( Cục giải quyết khiếu nại tố cáo và thanh tra khu vực 2 (Cục II))

(i) Agency of Settlement of Complaints-Denunciations and Inspection for region 3 (Agency III) (Cục giải quyết khiếu nại tố cáo và thanh tra khu vực 3 (Cục III))

(j) (Anti -corruption Agency (AgencyIV) Cục chống tham nhũng (Cục IV))

(k) Ministry Office, including Representative Offices in HoChiMinh city (Văn phòng, kể cả Văn phòng đại diện tại Thành phố Hồ Chí Minh)

(l) Department of Citizen Reception and Complaint and Denunciation Handling (Vụ tiếp dân và xử lý đơn thư)

(m) Department of Post-Inspection Supervision, Evaluation and Handling (Vụ giám sát, thẩm định và xử lý sau thanh tra)

(n) Department of Planning, Finance and General Affairs (Vụ Kế hoạch, Tài chính và Tổng hợp)

11. Ministry of Industry and Trade (Bộ Công Thương)

(a) Planning Department (Vụ Kế hoạch)

(b) Organization and Personnel Department (Vụ Tổ chức cán bộ)

(d) International Cooperation Department (Vụ Hợp tác quốc tế)

(e) Ministry Inspectorate (Thanh tra Bộ)

(f) Science and Technology Department (Vụ Khoa học và Công nghệ)

(g) Heavy Industry Department (Vụ Công nghiệp nặng)

(h) Directorate of Energy (Tổng cục năng l ượng)

(i) Light Industry Department (Vụ Công nghiệp nhẹ)

(j) Export-Import Agency (Cục Xuất nhập khẩu)

(k) Domestic Market Department (Vụ Thị trường trong nước)

(l) Mountainous and Frontier Trade Department (Vụ Thương mại biên giới và miền núi)

(m) Asia-Pacific Market Department (Vụ Thị trường châu Á - Thái Bình Dương) (n) Europe Market Department (Vụ Thị trường châu Âu)

(o) America Market Department (Vụ Thị trường châu Mỹ)

(p) Africa, Western and South Asia Markets Department (Vụ Thị trường châu Phi, Tây Á, Nam Á)

(q) Multilateral Trade Policy Department (Vụ Chính sách thương mại đa biên)

(r) Remuneration and Rewards Department (Vụ Thi đua - Khen thưởng)

(s) Finance Department (Vụ Tài chính)

(t) The South Agency (Cục Công tác phía nam)

(u) Electricity Regulatory Agency (Cục Điều tiết điện lực)

(v) Competition Agency (Cục Quản lý cạnh tranh)

(w) Market Surveillance Agency (Cục Quản lý thị trường)

(x) Trade Promotion Agency (Cục Xúc tiến thương mại)

(y) Agency for Industrial Promotion (Cục Công nghiệp địa phương)

(z) Industrial Safety Techniques and Environment Agency (Cục Kỹ thuật an toàn và Môi trường công nghiệp)

(aa) Viet Nam E-Commerce and Information Technology Agency (Cục Thương mại điện tử và Công nghệ thông tin)

(bb) Chemicals Agency (Cục Hóa chất)

(cc) Human Resource Development Department (Vụ Phát triển nguồn nhân lực)

(dd) Ministry Office, including Representative Offices in Da Nang city (Văn phòng Bộ, kể cả Văn phòng đại diện tại Đà Nẵng)

12. Ministry of Health (Bộ Y tế)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of International Cooperation (Vụ Hợp tác quốc tế)

(e) Drug Administration of Viet Nam (Cục Quản lý dược)

(f) Department of Health Insurance (Vụ Bảo hiểm y tế)

(g) Department of Children - Mother Health (Vụ Sức khỏe Bà mẹ – Trẻ em)

(h) Agency of Administration of Traditional Medicine (Cục Quản lý Y Dược cổ truyền)

(i) Department of Health Equipment and Works (Vụ Trang thiết bị và Công trình y tế)

(j) Department of Planning and Finance (Vụ Kế hoạch – Tài chính)

(k) Ministry' Office, including Representative Offices in Ho Chi Minh city (Văn phòng Bộ, kể cả Văn phòng đại diện tại Thành phố Hồ Chí Minh)

(l) Agency of Preventive Medicine (Cục Y tế dự phòng)

(m) HIV/AIDS Prevention Agency (Cục Phòng, chống HIV/AIDS)

(n) Agency of Health Examination and Treatment (Cục Quản lý khám, chữa bệnh)

(o) Agency of Food Safety (Cục An toàn thực phẩm)

(p) Directorate of Population Family Planning (Tổng cục Dân số – Kế hoạch hóa gia đình)

(q) Department of communication and Emulation (Vụ truyền thông và Thi đua Khen thưởng)

(r) Agency of Information Technology (Cục Công nghệ thông tin)

(s) Agency of Administration of Environmental Health (Cục Quản lý môi trường Y tế)

(t) Agency of Science, Technology and Training (Cục Khoa học công nghệ và Đào tạo)

13. Ministry of Natural Resources and Environment (Bộ Tài nguyên và Môi trường)

(a) Legal Affairs Department (Vụ Pháp chế)

(b) Department of Finance (Vụ Tài chính)

(d) Department of International Cooperation (Vụ Hợp tác quốc tế)

(e) Department of Emulation, Commendation and Propaganda (Vụ Thi đua khen thưởng và tuyên truyền)

(f) Ministry Inspectorate (Thanh tra Bộ)

(g) Department of Planning (Vụ Kế hoạch)

(h) Department of Science and Technology (Vụ Khoa học và Công nghệ) (i) Directorate of Land Administration (Tổng cục Quản lý đất đai)

(j) Agency of Water Resources Management (Cục Quản lý tài nguyên nước)

(k) Agency of Meteorology, Hydrography and Climate Changes (Cục Khí tượng thủy văn và Biến đổi khí hậu)

(l) Agency of Survey and Mapping (Cục Đo đạc và Bản đồ Việt Nam)

(m) Ministry Office, including Representative Offices in Ho Chi Minh city (Văn phòng Bộ, bao gồm cả Văn phòng đại diện tại Thành phố Hồ Chí Minh)

(n) Directorate of Environment (Tổng cục Môi trường)

(o) Directorate of Geology and Minerals of Viet Nam ( Tổng cục Địa chất và Khoáng sản)

(p) Agency of Technology and Information (Cục Công nghệ và Thông tin)

(q) Agency of National Remote Sensing (Cục Viễn thám quốc gia)

(r) General Department of the Sea and Offshore Islands (Tổng cục Biển và Hải đảo Việt Nam)

14. Ministry of Education and Training (Bộ Giáo dục và Đào tạo)

(a) Ministry Inspectorate (Thanh tra Bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of Pre-school Education (Vụ Giáo dục Mầm non)

(e) Department of Primary Education (Vụ Giáo dục Tiểu học)

(f) Department of Secondary Education (Vụ Giáo dục Trung học)

(g) Department of Professional Education (Vụ Giáo dục Chuyên nghiệp)

(h) Department of Higher Education (Vụ Giáo dục Đại học)

(i) Department of Ethnic Minorities Education (Vụ Giáo dục Dân tộc)

(j) Department of Continuing Education (Vụ Giáo dục Thường xuyên)

(k) Department of Student Affairs (Vụ Công tác học sinh, sinh viên)

(l) Department of National Defense (Vụ Giáo dục Quốc phòng)

(m) Department of Science, Technology and Environment (Vụ Khoa học - Công nghệ và Môi trường)

(n) Department of International Cooperation (Vụ Hợp tác Quốc tế)

(o) Department of Planning and Finance (Vụ Kế hoạch - Tài chính)

(p) Agency of Testing and Education Administrators (Cục Khảo thí và Kiểm định chất lượng giáo dục)

(q) Agency of Teachers and Education Administrators (Cục Nhà giáo và Cán bộ quản lý giáo dục)

(r) Agency of Information Technology (Cục Công nghệ thông tin)

(s) Agency of Education Facilities and Children' Toys (Cục Cơ sở vật chất và Thiết bị trường học, đồ chơi trẻ em)

(t) International Education Agency (Cục Đào tạo với nước ngoài)

(u) Ministry Office (Văn phòng Bộ)

(v) Representative Office in HoChiMinh city ( Cơ quan đại diện tại TP. Hồ Chí Minh)

15. Ministry of Home Affairs (Bộ Nội vụ)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) The Organization and Personnel Administration (Vụ Tổ chức - Biên chế)

(d) The Department of State Employees and Servants (Vụ Công chức - Viên chức)

(e) The Local Administration Department (Vụ Chính quyền địa phương)

(f) The International Cooperation Department (Vụ Hợp tác quốc tế)

(g) The Department of Non-Government Organization (Vụ Tổ chức phi chính phủ)

(h) The Administrative Reform Department (Vụ Cải cách hành chính)

(i) The Department of Training and Fostering of State Officials (Vụ Đào tạo, Bồi dưỡng cán bộ công chức)

(j) Legal Affairs Department (Vụ Pháp chế)

(k) The General Department (Vụ Tổng hợp)

(l) Ministry Inspectorate (Thanh tra Bộ)

(m) Ministry Office, including Representative Offices in Da nang and Ho Chi Minh city (Văn phòng Bộ, kể cả Văn phòng đại diện tại Đà Nẵng và Thành phố Hồ Chí Minh)

(n) State Records Management and Archives Agency (Cục Văn thư và Lưu trữ nhà nước)

(o) Government Committee for Religious Affairs (Ban Tôn giáo Chính phủ) (p) Central Committee of Emulation and Commendation (Ban Thi đua - Khen thưởng Trung ương)

(q) Department of Planning – Finance (Vụ Kế hoạch - Tài chính)

(r) Department of Youth affairs (Vụ Công tác thanh niên)

16. Ministry of Foreign Affairs (Bộ Ngoại giao )

(a) ASEAN Department (Vụ ASEAN)

(b) South East Asia-South Asia-South Pacific Department ( Vụ Đông Nam Á - Nam Á - Nam Thái Bình Dương)

(d) Europe Department (Vụ Châu Âu)

(e) America Department (Vụ Châu Mỹ)

(f) West Asia - Africa Department (Vụ Tây Á - Châu Phi)

(g) Policy planning Department (Vụ Chính sách Đối ngoại)

(h) International Organizations Department (Vụ các Tổ chức Quốc tế)

(i) Law and International Treaty Department (Vụ Luật pháp và Điều ước Quốc tế)

(j) Department of Multilateral Economic Cooperation (Vụ Hợp tác Kinh tế Đa phương)

(k) Economic Department (Vụ Tổng hợp Kinh tế)

(l) External Culture and UNESCO Department (Vụ Văn hóa Đối ngoại và UNESCO)

(m) Press and Information Department (Vụ Thông tin Báo chí)

(n) Personnel and Organization Department (Vụ Tổ chức Cán bộ)

(o) Ministry Inspectorate (Thanh tra Bộ)

(p) Ministry Office (Văn phòng Bộ)

(q) Consular Agency (Cục Lãnh sự)

(r) State Protocol Agency (Cục Lễ tân Nhà nước)

(s) Administrative and Financial Agency (Cục Quản trị Tài vụ)

(t) State Commission on Overseas Vietnamese (Ủy ban Nhà nước về người Việt Nam ở nước ngoài)

(u) Hochiminh City's Department of External Relations (Sở Ngoại vụ thành phố Hồ Chí Minh)

(v) Agency of Foreign Affairs (Cục Ngoại vụ)

(w) Department of Emulation, Rewards and Diplomatic Tradition (Vụ Thi đua – khen thưởng và Truyền thống ngoại giao)

17. Committee for Ethnic Affairs (Ủy ban Dân tộc)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Legal Affairs Department (Vụ Pháp chế)

(d) Department of Policies on Ethnic Minority (Vụ Chính sách dân tộc) (e) Department of Locality No.I (Vụ Địa phương I)

(f) Department of Locality No.II (Vụ Địa phương II)

(g) Department of Locality No.III (Vụ Địa phương III)

(h) Department of Propaganda (Vụ Tuyên truyền)

(i) Department of International Cooperation (Vụ Hợp tác quốc tế)

(j) Department of General Affairs (Vụ Tổng hợp)

(k) Department of Planning and Finance (Vụ Kế hoạch - Tài chính)

(l) Ministry Office (Văn phòng)

(m) Department of Ethnic Minorities (Vụ dân tộc thiểu số)

18. Ministry of Agriculture and Rural Development (Bộ Nông nghiệp và Phát triển nông thôn)

(a) International Cooperation Department (Vụ Hợp tác quốc tế)

(b) Department of Sciences, Technology and Environment (Vụ Khoa học, Công nghệ và Môi trường)

(d) Department of Finance (Vụ Tài chính)

(e) Department of Personnel and Organization ( Vụ Tổ chức cán bộ)

(f) Legal Affairs Department (Vụ Pháp chế)

(g) Ministry Inspectorate (Thanh tra Bộ)

(h) Agency of Livestock (Cục Chăn nuôi)

(i) Agency of Crop Production (Cục Trồng trọt)

(j) Agency of Processing for Agro-forestry- Fisheries Products and Salt Production (Cục Chế biến, nông lâm thủy sản và nghề muối)

(k) Ministry Office (Văn phòng Bộ)

(l) Agency of Plant Protection (Cục Bảo vệ thực vật)

(m) Water Resources Directorate (Tổng cục Thủy lợi)

(n) Directorate of Forest (Tổng cục Lâm nghiệp)

(o) Directorate of Fisheries (Tổng cục Thủy sản)

(p) Agency of Animal Health (Cục Thú y)

(q) Agency of Construction Management (Cục Quản lý xây dựng công trình)

(r) Agency of Cooperatives and Rural Development (Cục Kinh tế hợp tác và Phát triển nông thôn)

(s) National Agro-Forestry-Fisheries Quality Assurance Agency (Cục Quản lý chất lượng nông lâm sản và thủy sản)

(t) Department of Enterprise Management (Vụ Quản lý doanh nghiệp)

19. Ministry of Transport (Bộ Giao thông vận tải)

(a) Legal Affairs Department (Vụ Pháp chế)

(b) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(d) Department of Environment (Vụ Môi trường)

(e) Department of International Cooperation (Vụ Hợp tác quốc tế)

(f) Department of Traffic Safety (Vụ An toàn giao thông)

(g) Department of Transport Infrastructure (Vụ Kết cấu hạ tầng giao thông)

(h) Department of Science and Technology (Vụ Khoa học - Công nghệ)

(i) Department of Finance (Vụ Tài chính)

(j) Department of Planning and Investment (Vụ Kế hoạch - Đầu tư)

(k) Department of Enterprises Management (Vụ quản lý doanh nghiệp)

(l) Ministry Inspectorate (Thanh tra Bộ)

(m) Ministry Office (Văn phòng Bộ)

(n) Transport Engineering Construction and Quality Management Agency (Cục Quản lý xây dựng và Chất lượng công trình giao thông)

(o) Viet Nam Register Agency (Cục Đăng kiểm Việt Nam)

(p) Viet Nam Inland Waterways Agency (Cục Đường thủy nội địa Việt Nam)

(q) Viet Nam Maritime Agency (Cục Hảng hải Việt Nam)

(r) Viet Nam Railway Agency (Cục Đường sắt Việt Nam)

(s) Civil Aviation (Cục Hàng không Việt Nam)

(t) Directorate for Roads of Viet Nam (Tổng cục Đường bộ Việt Nam)

(u) Transport Health Service Administration (Cục Y tế Giao thông vận tải)

20. Ministry of Public Security (Bộ Công an)

(a) General Police Department (Tổng cục cảnh sát)

(b) Police Bureau of Fire Prevention, Fighting and Rescue (Cục Cảnh sát Phòng cháy, chữa cháy và cứu nạn, cứu hộ)

21. Ministry of National Defense (Bộ Quốc phòng)

(a) Department of Economics (Cục Kinh tế)

(b) Rescue Department (Cục Cứu hộ - Cứu nạn)

Notes to Section A:

1. Chapter 15 (Government Procurement) shall apply only to the procurement made by the above-mentioned entities subordinate to the relevant ministries which are listed in this Section and their administrative subordinate agencies at central level.

2. For Ministry of Labour, War invalids and Social Affairs, Chapter 15 (Government Procurement) shall not apply to any procurement of goods and services involving martyrs' cemetery.

3. For Viet Nam Social Security, for greater certainty, Chapter 15 (Government Procurement) shall not cover any procurement of investment management, investment advisory, or master custody and safekeeping services for the purposes of managing and investing the assets of superannuation funds of Viet Nam Social Security.

4. For Ministry of Transport, Chapter 15 (Government Procurement) shall not apply to procurement of construction services of the Ministry of Transport.

5. For Ministry of National Defense:

(a) Chapter 15 (Government Procurement) shall cover only the goods described as follows:

(i) tyres used on light trucks (maximum payload capacity from 410 kg to 3050 kg, external diameter from 475 mm to 972 mm), on specialty motor cars (maximum payload capacity from 2937 kg to 61500 kg, external diameter from 1220 mm to 3045 mm), on heavy trucks (maximum payload capacity from 4770 kg to 5525 kg, external diameter from 1020 mm to 1230 mm)

(ii) inner tubes used on motor cars (sectional diameter from 104 mm to 236 mm, inside diameter from 305 mm to 605 mm), on bicycles (as stipulated in TC 03- 2002/CA), on motorcycles (as stipulated in TCVN 5721-1, JIS6367, DOT, SN1)

(iii) leather products used on motor cars

(iv) elastic belts of all kinds (80 mm wide and 500 m long)

(v) cast-iron pipes and accessories (gray cast iron, ductile cast iron: common kinds with diameter from 100-800mm suitable to ISO 2531:1998 national standard)

(vi) antenna pillars (stay cables of a triangle cross-section of 330 with a height of 21-45 m; stay cables of a triangle cross-section of 660 with a height of 36-66 m; stay cables of a triangle cross-section of 800 with a height of 60-100 m; stay cables of a circle cross-section with a height of 15 m; mobile cable ties - of a height of 10 m) and all kinds of metallic scaffolds, support pillars and shuttering (of common kind)

(vii) spiral screws

(viii) chimneys

(ix) equipment for production of baked bricks of all kinds (of an output of up to 20,000,000 bricks/year)

(x) equipment for production of pure ice (parameters of big machines: ice cube size of 48 x 80 mm, an output of 9-10 tonnes/24h, 400 kg/batch, power consumption level of 0.085 kwh/kg of ice, the compressor's output of 50 HP) (xi) sterilising autoclaves (of types of 20, 52 and 75 litres)

(xii) industrial water filters (of an output of 6 tonnes/h, electric capacity of 25 kw)

(xiii) winches, operated by electric motor (of a lifting capacity of up to 50 tonnes) (xiv) dot matrix printers

(xv) washing machines of all kinds (including kinds with automatic dryers) (xvi) cash registers

(xvii) showers (used for baffle separator in kitchen: Q030JGEV, Q030JGV, Q030JGEVQ01)

(xviii) tube plate acid lead battery (special-used for forklift trucks operated by electricity: capacity of between 2V-100 Ah and 2V-1000 Ah; Special-used for trams in golf yards, railway stations, ports; capacity of 6V-225Ah, 8V-195Ah; 12V 130Ah)

(xix) headlights for car, Headlights for 1- tonne – capacity - under – truck, Wipers for automobile,

(xx) horn for automobile

(xxi) post office boxes

(xxii) webcam

(xxiii) two-wheels bicycles and other pedal-powered cycles (including three-wheel cargo pedicabs)

(xxiv) exhaust pipes of motorcycles, grip handle at back of motorcycles, before and back dampings for motorcycles

(xxv) one-phase and three-phase electronic meters (U of up to 380V, I of up to 100A), one-phase and three-phase electronic meters, single-phase electronic meters (Degree of accuracy 1.0: normalised voltage (Un): 220 VAC, rated current (Ib):5A, 10A, 20A, 30A, 50A: maximum current (Imax): 20A, 40A, 60A, 80A, 100A, starting current (Ist)< 0.4%Ib; working frequency: 50Hz; meter constant: 1600 impulse/kwh),

(xxvi) composite protection boxes of electricity meters,

(xxvii) composite boxes of electricity meters

(xxviii) testing apparatus for meter (12 – position single phase; 40 – position single phase)

(xxix) alarm-clocks

(xxx) wall clocks (electrically operated)

(xxxi) warning signs made of fluorescent reflection aluminium (for autos, motors, traffic signs)

(xxxii) rubber sticks, electric sticks of all kinds, pepper spray (type of 500 ml, 2000 ml)

(xxxiii) cane or beet sugar and sucrose (chemically pure, in solid form), raw sugar not containing added flavouring or colouring matter and others

(xxxiv) vinegar

(xxxv) table salt

(xxxvi) lime

(xxxvii) pure copper ore (18-20% Cu)

(xxxviii) monosodium glutamate

(xxxix) printing inks of all kinds (used to print identification)

(xl) newsprint, in rolls or sheets (of a standard weight of 42-55 g/m2) (xli) uncoated paper and paperboard, of a kind used for printing, writing or photocopying, card-making, punch tape paper or waxed base for manufacture of technical paper (of a standard weight of 40-120 g/m2. Excluding those under subheadings of: 4802.51.20, 4802.60.20, 4802.30.00, 4802.40.00, 4802.20.00) (xlii) paper shoe insoles (for lining shoes)

(xliii) three-ply, five-ply cartons

(xliv) cotton and polyester shoelaces

(xlv) inners of vacuum flasks

(xlvi) electrostatic-painted steel protection boxes of electric meter (for electric grid works)

(xlvii) accessories of motorbike and bicycle

(xlviii) composite meter protection box (for electric grid works; type of 01 meter, single phase; type of 02 meters, single phase; type of 04 meters, single phase, type of 01 meter, 03 phases)

(xlix) HDPE plastic water tubes (type of φ 20-110mm, with low heat-transfer coefficient, resisting sunlight, not be ionised under ultraviolet ray, resisting the low temperature of -40oC), PPR plastic water tubes (type of φ 20-90mm, resisting high temperature and pressure, high durability, good bending resistance, not causing noise and vibration when water flow going pass)

(l) plastic doors, plastic doors with steel core produced from shaped uPVC bar (manufactured synchronously from components such as shaped door frame, glassy box, and washer. Having sound insulating, heat insulating property and resisting high pressure; energy saving)

(li) mirror glass (of a thickness of between 1.5 - 18mm)

(lii) hot and cold showers (type of 02 water-flows used for restroom), cold bathroom showers (type of 01 water-flow used for restroom), hot and cold lavatory faucets (type of 02 water-flows used for restroom), cold faucets (type of 01 water flow used for restrooms), cold tap to wash up dishes (type of 02 water-flows used for kitchen room), pond faucet (type of 02 water-flows used for washing hands) (liii) electric lamp of all kinds (filament lamps of common type; compact lamps of 2U, 3U, capacity of 5-20W; FHF Fluorescents, capacity of 32W; FLD Fluorescents, capacity of 18W and 36W)

(liv) paper-made packaging of software products

(lv) boxes and covers protecting objects carrying information

(lvi) paper-made labels of electronic products

(b) Chapter 15 (Government Procurement) shall cover only the services described in the United Nations Provisional Central Product Classification as follows:

CPC Description

61120 Maintenance and repair services of motor vehicles (except for service involving engine overhaul)

612 Sale, maintenance and repair services of motorcyles and snowmobiles; sales of related parts and accessories (offer only the services involving maintenance and repair services of motor vehicles under CPC612)

87401 Disinfecting and exterminating services

87507 Restoration, copying and retouching services of photography

87501 Portrait photography services

51520 Water well drilling (except for installation and repair work of piping systems within buildings)

6. For Ministry of Public Security

(a) Chapter 15 (Government Procurement) shall cover only the goods as described in the HS issued together with Circular No. 156/2011/TT-BTC dated November 24, 2011 as follows:

(b) Chapter 15 (Government Procurement) shall not cover services or construction services procured by the Ministry of Public Security.

(c) The extent and composition of coverage of pharmaceuticals by the Ministry, and the rights accorded to the foreign invested pharmaceutical enterprises, will follow the same formula as that employed by the Ministry of Health for its covered procurement of pharmaceuticals, laid out in the notes in Section D.

SECTION B: Sub-Central Government Entities

None.

SECTION C: Other Entities

Chapter 15 (Government Procurement) shall apply to the entities listed in this Section where the value of the procurement is estimated to equal or exceed the following thresholds:

Thresholds:

1. Goods and Services

- From the date of entry into force of this Agreement for Viet Nam to the end of the fifth year following entry into force of this Agreement for Viet Nam: 3,000,000 SDR

- From the beginning of the sixth year following entry into force of this Agreement for Viet Nam: 2,000,000 SDR

2. Construction Services

- From the date of entry into force of this Agreement for Viet Nam to the end of the fifth year following entry into force of this Agreement for Viet Nam: 65,200,000 SDR

- From the beginning of the sixth year to the end of the 10thyear following entry into force of this Agreement for Viet Nam: 55,000,000 SDR

- From the beginning of the 11thyear to the end of the 15th year following entry into force of this Agreement for Viet Nam: 40,000,000 SDR

- From the beginning of the 16thyear to the end of the 20thyear following entry into force of this Agreement for Viet Nam: 25,000,000 SDR

- From the beginning of the 21styear following entry into force of this Agreement for Viet Nam: 15,000,000 SDR

List of Entities:

1. Viet Nam News Agency (Thông tấn xã Việt Nam)

(a) Personnel and Organization Board (Ban Tổ chức cán bộ)

(b) Board of Inspection (Ban Kiểm tra)

(d) Board of Planning and Finance (Ban Kế hoạch – Tài chính)

(e) Board of News for Foreign Service (Ban Biên tập tin đối ngoại)

(f) Board of Domestic News (Ban Biên tập tin trong nước)

(g) Board of Economic News (Ban Biên tập tin kinh tế)

(h) Board of World News (Ban Biên tập tin thế giới)

(i) Database-Documentation Center (Trung tâm thông tin tư liệu)

(j) Informatics Centre (Trung tâm tin học)

(k) Viet Nam News Agency Professional Training Centre (Trung tâm Bồi dưỡng nghiệp vụ Thông tấn)

(l) Representative Office in the South (Cơ quan Thông tấn xã Việt Nam khu vực phía Nam)

(m) Representative Office in the Centre -Tay Nguyen (Cơ quan Thông tấn xã Việt Nam khu vực Miền Trung – Tây Nguyên)

(n) Pictorial Editorial Board (Ban Biên tập ảnh)

(o) The Administrative Affair Office (Văn phòng Thông tấn xã)

2. Ho Chi Minh National Academy of Politics (Học viện Chính trị quốc gia Hồ Chí Minh)

(a) Department of Personnel and Organization (Vụ Tổ chức cán bộ)

(b) Department of Scientific Management (Vụ Quản lý khoa học)

(d) Department of International cooperation( Vụ Hợp tác quốc tế)

(e) Department of Training Management (Vụ Quản lý đào tạo)

(f) Department of Provincial Political Schools (Vụ Các trường chính trị) (g) Institute of International Relations (Viện Quan hệ quốc tế)

(h) Institute of State and Law (Viện Nhà nước và Pháp luật)

(i) Institute of Philosophy (Viện Triết học)

(j) Institute of Political Sciences (Viện Chính trị học)

(k) Institute of Culture and Development (Viện Văn hóa và Phát triển)

(l) Institute of Human Right Studies (Viện Nghiên cứu quyền con người)

(m) Institute of Economics (Viện Kinh tế)

(n) Journal of Political Theory (Tạp chí Lý luận chính trị)

(o) Institute of the CPV History (Viện Lịch sử Đảng)

(p) Institute of Ho Chi Minh and the CPV's Leaders' Studies (Viện Hồ Chí Minh và các Lãnh tụ của Đảng)

(q) Institute of Scientific Socialism (Viện Chủ nghĩa xã hội khoa học)

(r) Institute of Sociology (Viện Xã hội học)

(s) Department of Planning and Finance (Vụ Kế hoạch – Tài chính)

3. Viet Nam Academy of Social Sciences (Viện Hàn lâm Khoa học xã hội Việt Nam)

(a) Social Sciences Publishing House (Nhà xuất bản Khoa học xã hội)

(b) Institute of Indian and Southwest Asian Studies (Viện Nghiên cứu Ấn Độ và Tây Nam Á)

(d) Viet Nam Social Sciences Review (Tạp chí Khoa học xã hội Việt Nam)

(e) Institute of Human Studies (Viện Nghiên cứu con người)

(f) Institute for Religious Studies (Viện Nghiên cứu Tôn giáo)

(g) Viet Nam Institute for Northeast Asian Studies (Viện Nghiên cứu Đông Bắc Á)

(h) Viet Nam Institute of American Studies (Viện Nghiên cứu Châu Mỹ)

(i) Viet Nam Museum of Ethnology (Bảo tàng Dân tộc học Việt Nam)

(j) Institute of African and Middle East Studies (Viện Nghiên cứu Châu Phi và Trung Đông)

(k) Viet Nam Institute of Chinese Studies (Viện Nghiên cứu Trung Quốc)

(l) Center for Information Technology (Trung tâm Ứng dụng Công nghệ thông tin)

(m) Institute of Sustainable Development of the Central Region (Viện Phát triển bền vững vùng Tây Nguyên)

(n) Institute of Cultural Studies (Viện Nghiên cứu Văn hóa)

(o) Institute of History (Viện Sử học)

(p) Institute of State and Law (Viện Nhà nước và Pháp luật)

(q) Institute of Anthropology (Viện Dân tộc học)

(r) Institute for Southeast Asian Studies (Viện Nghiên cứu Đông Nam Á)

(s) Institute of Philosophy (Viện Triết học)

(t) Institute of Sociology (Viện Xã hội học)

(u) Institute for European Studies (Viện Nghiên cứu Châu Âu)

(v) Institute of Psychology (Viện Tâm lý học)

(w) Viet Nam Institute of Literature (Viện Văn học)

(x) Viet Nam Institute of Economics (Viện Kinh tế Việt Nam)

(y) Viet Nam Institute of Lexicography and Encyclopedia (Viện Từ điển học và Bách khoa thư Việt Nam)

(z) Institute of World Economics and Politics (Viện Kinh tế và Chính trị thế giới)

(aa) Institute of Han - Nom Studies (Viện Nghiên cứu Hán – Nôm)

(bb) Graduate Academy of Social Sciences (Học viện Khoa học xã hội) (cc) Institute of Archaeology (Viện Khảo cổ học )

(dd) Institute of Social Sciences Information (Viện Thông tin Khoa học xã hội) (ee) Department of Personnel and Organization (Ban Tổ chức cán bộ)

(ff) Department of Finance and Planning (Ban Kế hoạch – Tài chính)

(gg) Department of Science Management (Ban Quản lý Khoa học)

(hh) Department of International Cooperation (Ban Hợp tác quốc tế)

(ii) Head Office (Văn phòng)

4. Viet Nam Academy of Science and Technology (VAST) (Viện Hàn lâm Khoa học và công nghệ Việt Nam)

(a) Institute of Mathematics (Viện Toán học)

(b) Publishing House for Science and Technology (Nhà xuất bản Khoa học tự nhiên và Công nghệ)

(d) Institute of Applied Informatics and Mechanics (Viện Cơ học và Tin học ứng dụng)

(e) Institute of Chemical Technology (Viện Công nghệ hóa học)

(f) Institute of Applied Materials Science (Viện Khoa học vật liệu ứng dụng)

(g) Institute of Tropical Biology (Viện Sinh học nhiệt đới)

(h) Institute of Energy Science (Viện Khoa học năng lượng)

(i) Administration Office, including Representative Offices in Ho Chi Minh city (Văn phòng VAST, bao gồm Văn phòng đại diện tại Thành phố Hồ Chí Minh)

(j) Institute of Information Technology (Viện Công nghệ thông tin)

(k) Institute of Mechanics (Viện Cơ học )

(l) Institute of Geophysics (Viện Vật lý địa cầu)

(m) Institute of Ecology and Biological Resources (Viện Sinh thái và Tài nguyên sinh vật)

(n) Institute of Marine Environment and Resources (Viện Tài nguyên và Môi trường biển)

(o) Tay Nguyen Institute of Biology (Viện Sinh học Tây Nguyên)

(p) Institute of Oceanography (Viện Hải dương học)

(q) Nha Trang Institute of Technology Research and Application ( Viện Nghiên cứu và Ứng dụng công nghệ Nha Trang)

(r) Institute of Physics (Viện Vật lý)

(s) Institute of Marine Geology and Geophysics (Viện Địa chất và Địa vật lý biển)

(t) Institute of Environmental Technology (Viện Công nghệ môi trường)

(u) Institute of Materials Science (Viện Khoa học vật liệu)

(v) Institute of Chemistry (Viện Hóa học)

(w) Institute of Natural Products Chemistry (Viện Hóa học các hợp chất thiên nhiên)

(x) Institute of Biotechnology (Viện Công nghệ sinh học)

(y) Institute of Geography (Viện Địa lý)

(z) Institute of Geological Sciences (Viện Địa chất)

(aa) Institute of Tropical Technology (Viện Kỹ thuật nhiệt đới)

(bb) Space Technology Institute (Viện Công nghệ vũ trụ)

(cc) Center for Information Infrastructure Development (Trung tâm tin học và Tính toán)

(dd) Institute of Marine Biochemistry (Viện Hóa sinh biển)

5. Bach Mai Hospital (Bệnh viện Bạch Mai)

6. Cho Ray Hospital (Bệnh viện Chợ Rẫy)

7. Hue Central Hospital (Bệnh viện Đa khoa Trung ương Huế)

8. Thai Nguyen National General Hospital (Bệnh viện Đa khoa Trung ương Thái Nguyên) 9. Can Tho National Hospital (Bệnh viện Đa khoa Trung ương Cần Thơ)

10. Quang Nam Central General Hospital (Bệnh viện Đa khoa Trung ương Quảng Nam)

11. Uong Bi Viet Nam – Sweden Hospital (Bệnh viện Việt Nam - Thụy Điển Uông Bí)

12. Viet Nam – Cuba Donghoi Friendship Hospital (Bệnh viện Hữu nghị Việt Nam - Cu Ba Đồng Hới)

13. Viet Duc Hospital (Bệnh viện Hữu nghị Việt - Đức)

14. E Hospital (Bệnh viện E)

15. Friendship Hospital (Bệnh viện Hữu nghị)

16. Thong Nhat Hospital/ Unified Hospital (Bệnh viện Thống Nhất)

17. C Hospital (Bệnh viện C Đà Nẵng)

18. K Hospital (Bệnh viện K)

19. Viet Nam National Hospital of Pediatrics (Bệnh viện Nhi Trung ương)

20. National Hospital of Obstetrics and Gynecology (Bệnh viện Phụ - Sản Trung ương)

21. The Viet Nam National Institute of Ophthalmology (Bệnh viện Mắt Trung ương)

22. Hospital of Ear - Nose - Throat (Bệnh viện Tai - Mũi - Họng Trung ương)

23. National Hospital of Endocrinology (Bệnh viện Nội tiết Trung ương)

24. National Hospital of Odonto - Stomatology (Bệnh viện Răng - Hàm - Mặt Trung ương Hà Nội)

25. Ho Chi Minh Hospital of Odonto - Stomatology (Bệnh viện Răng - Hàm - Mặt Trung ương thành phố Hồ Chí Minh)

26. Central 71 Hospital (Bệnh viện 71 Trung ương)

27. Central 74 Hospital (Bệnh viện 74 Trung ương)

28. National Hospital of Lung Diseases (Bệnh viện Phổi Trung ương)

29. National Psychiatric Hospital no.1 (Bệnh viện Tâm thần Trung ương 1)

30. National Metal Hospital 2 (Bệnh viện Tâm thần Trung ương 2)

31. Quyhoa National Leprosy Dermatology Hospital (Bệnh viện Phong - Da liễu Trung ương Quy Hòa)

32. Quynh Lap National Leprosy Dermatology Hospital (Bệnh viện Phong - Da liễu Trung ương Quỳnh Lập)

33. Hospital of Nursing - Rehabilitation (Bệnh viện Điều dưỡng - Phục hồi chức năng Trung ương)

34. National Hospital of Tropical Diseases (Bệnh viện Bệnh Nhiệt đới Trung ương)

35. National Hospital of Dermatology and Venereology (Bệnh viện Da liễu Trung ương) 36. Hospital of Geriatric (Bệnh viện Lão khoa Trung ương)

37. National Hospital of Traditional Medicine (Bệnh viện Y học cổ truyền Trung ương) 38. National Hospital of Acupuncture (Bệnh viện Châm cứu Trung ương)

Notes to Section C:

1. For greater certainty, for Viet Nam News Agency, Ho Chi Minh National Academy of Politics, Viet Nam Academy for Social Sciences, Viet Nam Academy for Science and Technology, Chapter 15 (Government Procurement) shall apply only to the procurement made by the above-mentioned entities subordinate to the relevant procuring entities.

2. For Ho Chi Minh National Academy of Politics, Chapter 15 (Government Procurement) shall not apply to procurement of restoration services of Ho Chi Minh National Academy of Politics.

3. For Viet Nam News Agency, Chapter 15 (Government Procurement) shall not apply to any procurement in relation to news and documentary production of Viet Nam News Agency.

4. For 34 National Hospitals, for the purpose of determining whether a pharmaceutical procurement equals or exceeds the Section C goods threshold, the relevant contract will be the consolidated pharmaceutical contract which lasts at least one year for each hospital, or the centralised contract conducted by the Ministry of Health on behalf of them. Should a hospital procure in contracts which last a shorter period, the applicable threshold shall be 500,000 SDR. Should a procurement contract concern a single pharmaceutical product, the applicable threshold shall be 180,000 SDR.

5. Viet Nam does not offer the coverage of Section C to Mexico.

SECTION D: Goods

Chapter 15 (Government Procurement) shall cover all goods procured by the entities listed in Sections A and C, subject to the Notes to the respective Sections and Section G, except for goods indicated in the lists below.

Note to Section D:

For pharmaceutical products, the following notes shall apply.

1. For each calendar year following the date of entry into force of this Agreement for Viet Nam, Viet Nam may set aside from the obligations of Chapter 15 (Government Procurement) the respective percentage of contract value of pharmaceutical products as follows.

2. With respect to the share of pharmaceutical procurement subject to commitments under Chapter 15 (Government Procurement), its composition will be composed of the following categories in sequential order:

(a) all innovative (patented) pharmaceuticals; then

(b) all Category 1 generics (under the classification system of Viet Nam's Ministry of Health); then

(d) all Category 3 generics; then

(e) all Category 4 generics; then

(f) Category 5 generics,

until the share of the annual procurement that is covered for that year is reached.

3. Any Party's suppliers of pharmaceuticals, including foreign invested enterprises, to covered entities shall have the right to participate directly in tenders.

4. Chapter 15 (Government Procurement) shall not cover procurement of distribution services of pharmaceutical products that form a procurement contract or form a part of, or are incidental to, a procurement contract. In case these services form a part of, or are incidental to, a procurement contract, the successful supplier of that procurement, including foreign invested enterprises, shall have the right to choose any licensed pharmaceutical distributors in Viet Nam to deliver pharmaceutical products to covered entities, including their existing distributors.

SECTION E: Services

The following services, as elaborated in the United Nations Provisional Central Product Classification, are covered (others being excluded):

CPC Description

61 Sale, maintenance and repair services of motor vehicles and motorcycles 64 Hotel and restaurant services

75231 Data network services

75232 Electronic message and information services

84 Computer and related services

862 Accounting, auditing and book-keeping services

863 Taxation services

864 Market research and public opinion polls

872 Placement and supply services of personnel

874 Building-cleaning services

87501 Portrait photography services

87503 Action photography services

87504 Specialty photography services

87505 Photography processing services

87506 Motion picture processing services to the motion picture and television industries

87507 Restoration, copying and retouching services of photography 87509 Other photographic services

876 Packaging services

87903 Telephone answering services

87904 Duplicating services

87905 Translation and interpretation services

87906 Mailing list compilation and mailing services

94 Sewage and refuse disposal, sanitation and other environmental protection services (except for refuse collection in the offices of covered entities)

97 Other services (except for Codes: 97030 – Funeral, cremation and undertaking services and 97090 – Other services n.e.c.)

980 Private households with employed persons

99 Services provided by extraterritorial organizations and bodies

Notes to Section E

1. Chapter 15 (Government Procurement) shall not apply to:

(a) any procurement of public utilities services; or

(b) any procurement of services associated with the management and operation of government facilities and all privately owned facilities used for government purposes.

2. For CPC 75231, 75232, 84, commitments under Chapter 15 (Government Procurement) are available to a supplier of a Party who is, in case the procurement applies to enterprises, established and operates in Viet Nam under Vietnamese laws, or in case the procurement applies to an individual, an individual bearing Vietnamese nationality.

SECTION F: Construction Services

Chapter 15 (Government Procurement) shall cover all construction services procured by the entities listed in Section A and Section C listed in Division 51 of the United Nations Provisional Central Product Classification (CPC), except for the construction services excluded in the Schedule of the Party, subject to the Notes to the respective Sections, the General Notes, and the Notes to this Section.

Notes to Section F:

Chapter 15 (Government Procurement) shall not cover the procurement of:

1. dredging services;

2. construction in remote, mountainous and extremely difficult areas as stipulated in Viet Nam's regulations and on islands located beyond Viet Nam's territorial sea; or

3. construction of ministerial level headquarters.

SECTION G: General Notes

1. Chapter 15 (Government Procurement) shall not apply to:

(a) build-operate-transfer contract and public works concession contract;

(b) any procurement for the purposes of developing, protecting or preserving national treasures of artistic, historic, archaeological value or cultural heritage;

(c) procurement of any goods and related services involving national reserves stipulated in the Law on National Reserves and any amendments thereof;

(d) any procurement involving any form of preference to benefit small and medium enterprises;

(e) measures for the health, welfare and the economic and social advancement of ethnic minorities;

(f) procurement funded by grants and sponsorship payments from persons not listed in this Annex;

(g) any procurement of goods and services inside the territory of Viet Nam, for the consumption outside the territory of Viet Nam;

(h) any procurement of goods and services involving national celebrations and religious purposes;

(i) transportation services that form a part of, or are incidental to, a procurement contract; or

(j) any procurement by a procuring entity from another government entity.

2. For greater certainty,

(a) limited tendering shall apply also to bomb and mine sweeping for land clearance;

(b) Chapter 15 (Government Procurement) shall not apply to any procurement made by a covered entity on behalf of a non-covered entity;

(c) provided that it complies with Article 15.4 (General Principles), Viet Nam may adopt measures that discriminate in favour of suppliers of any Party offering the goods or services of any Party against those suppliers offering goods or services from non-Parties;

(d) any exclusion that is related either specifically or generally to a procuring entity will also apply to any successor entity in such a manner as to maintain the value of this offer;

(e) services covered by Chapter 15 (Government Procurement) are subject to exclusions from and reservations to Chapter 9 (Investment), Chapter 10 (Cross Border Trade in Services) and Chapter 11 (Financial Services).,;

(f) nothing in Chapter 15 (Government Procurement) shall be construed to prevent Viet Nam from adopting or maintaining any measure that it considers necessary for the protection of essential security interests, including national secrets, as defined in Vietnamese laws and regulations; and

(g) this market access offer shall only apply to original signatories, namely Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and the United States.

SECTION H: Threshold Adjustment Formula

2. Every two years, Viet Nam shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Viet Nam Dong. These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Viet Nam Dong in terms of the Special Drawing Rights (SDR) over the two year period preceeding October 1 of the year before the adjusted thresholds are to take effect.

4. Viet Nam shall notify the other Parties of the current thresholds in Viet Nam Dong immediately after this Agreement enters into force for Viet Nam, and the adjusted thresholds in Viet Nam Dong thereafter in a timely manner.

5. Viet Nam shall consult if a major change in Viet Nam Dong relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

SECTION I: Procurement Information

1. Notice of Intended Procurement is published in Viet Nam Public Procurement Newspaper (Báo Đấu thầu).

2. Viet Nam shall provide the address of website to publish procurement information after transitional period.

SECTION J: Transitional Measures

1. Notwithstanding the requirement in Article 15.7.2 (Notices of Intended Procurement), where notices of intended procurement are accessible by electronic means, they must be provided free of charge, Viet Nam may charge a fee for access to its notices of intended procurement, when these notices are accessible by electronic means, until Viet Nam's e procurement system is operational and Viet Nam has issued a legal measure requiring all of its Section A procuring entities to use the e-procurement system, provided that it complies with Article 15.4 (General Principles). During this transitional period, Viet Nam will periodically inform the Parties of the status of the development and implementation of its e

procurement system.

2. Notwithstanding the requirements in Article 15.7.3(g) and (h) (Notices of Intended Procurement) that a notice of intended procurement include a list and a brief description of any conditions for participation of suppliers and limitations on the number of qualified supplier to be invited to tender, Viet Nam may omit such information from its notices of intended procurement, until Viet Nam's e-procurement system is operational and Viet Nam has issued a legal measure requiring all of its Section A procuring entities to use the e procurement system. During this transitional period, Viet Nam shall provide such information in its tender documentation, provided that it complies with Article 15.4 (General Principles).

3. Notwithstanding the requirement in Article 15.14.3 (Time Periods) that a procuring entity provide 40 days for the final date for submission of tenders, Viet Nam may establish a final date for submission of tenders that is not less than 25 days from the date on which:

(a) in the case of open tendering, the notice of intended procurement is published; or

(b) in the case of selective tendering, the entity notifies the suppliers that they will be invited to submit tenders,

until Viet Nam's e-procurement system is operational and Viet Nam has issued a legal measure requiring all of its Section A procuring entities to use the e-procurement system, or seven years after the date of entry into force of this Agreement for Viet Nam, whichever is earlier, provided that it complies with Article 15.4 (General Principles).

On request by Viet Nam, the Parties will give favourable consideration to the extension of the transitional period for up to a maximum of an additional three years period provided that Viet Nam has demonstrated concrete steps during the implementation period to comply with Article 15.14.3 (Time Periods).

4. Notwithstanding the requirements in Article 15.16.3(f) (Post-Award Information) that the post-award notice include a brief description of the circumstances justifying the use of a limited tendering procedure, Viet Nam may omit such information from post-award notices until Viet Nam's e-procurement system is operational and Viet Nam has issued a legal measure requiring all of its Section A procuring entities to use the e-procurement system. During this period, Viet Nam shall provide such information to a Party on request.

5. Notwithstanding Article 15.19 (Domestic Review), Viet Nam may delay application of its obligations under Article 15.19 (Domestic Review) for three years after the date of entry into force of this Agreement for Viet Nam. During this period, Viet Nam shall allow suppliers of any Party to take complaints about the conduct of a covered procurement to the procuring entity, in accordance with the Public Procurement Law, provided that it complies with Article 15.4 (General Principles).

6. Notwithstanding Chapter 28 (Dispute Settlement), Viet Nam shall not be subject to dispute settlement with respect to its obligations under Chapter 15 (Government Procurement) for five years from the date of entry into force of this Agreement for Viet Nam. During this transitional period, Viet Nam shall enter into consultations with any Party that raises concerns with the implementation of its obligations.

7. Transitional thresholds are applied as provided for in Sections A and C. Offsets

8. Notwithstanding Article 15.4.6 (General Principles), Viet Nam is allowed to seek, take account of, impose or enforce any form of offsets at any stage of a procurement as follows:

(a) Upon the date of entry into force of this Agreement for Viet Nam, Viet Nam may request offsets in any form, including a price preference programme, on up to 40 per cent of the annual value of total covered procurement, decreasing after 10 years to on up to 30 per cent of the annual value of total covered procurement, until the end of 25th year. The offset programme shall be eliminated from the beginning of the 26th year after the date of entry into force of this Agreement for Viet Nam.

(b) For greater certainty, subparagraph (a) does not limit the amount of offsets that Viet Nam may request on a contract that falls within the annual percentage of total covered procurement subject to offsets as indicated above.

CHAPTER 16

COMPETITION POLICY

Article 16.1: Competition Law and Authorities and Anticompetitive Business Conduct

1. Each Party shall adopt or maintain national competition laws that proscribe anticompetitive business conduct, with the objective of promoting economic efficiency and consumer welfare, and shall take appropriate action with respect to that conduct. These laws should take into account the APEC Principles to Enhance Competition and Regulatory Reform, done at Auckland, September 13, 1999.

2. Each Party shall endeavour to apply its national competition laws to all commercial activities in its territory.2 However, each Party may provide for certain exemptions from the application of its national competition laws provided that those exemptions are transparent and are based on public policy grounds or public interest grounds.

3. Each Party shall maintain an authority or authorities responsible for the enforcement of its national competition laws (national competition authorities). Each Party shall provide that it is the enforcement policy of that authority or authorities to act in accordance with the objectives set out in paragraph 1 and not to discriminate on the basis of nationality.

Article 16.2: Procedural Fairness in Competition Law Enforcement

1. Each Party shall ensure that before it imposes a sanction or remedy against a person for violating its national competition laws, it affords that person:

(a) information about the national competition authority's competition concerns;

(b) a reasonable opportunity to be represented by counsel; and

(c) a reasonable opportunity to be heard and present evidence in its defence, except that a Party may provide for the person to be heard and present evidence within a reasonable time after it imposes an interim sanction or remedy.

In particular, each Party shall afford that person a reasonable opportunity to present evidence or testimony in its defence, including: if applicable, to offer the analysis of a properly qualified expert, to cross-examine any testifying witness; and to review and rebut the evidence introduced in the enforcement proceeding.

2. Each Party shall adopt or maintain written procedures pursuant to which its national competition law investigations are conducted. If these investigations are not subject to definitive deadlines, each Party's national competition authorities shall endeavour to conduct their investigations within a reasonable time frame.

3. Each Party shall adopt or maintain rules of procedure and evidence that apply to enforcement proceedings concerning alleged violations of its national competition laws and the determination of sanctions and remedies thereunder. These rules shall include procedures for introducing evidence, including expert evidence if applicable, and shall apply equally to all parties to a proceeding.

4. Each Party shall provide a person that is subject to the imposition of a sanction or remedy for violation of its national competition laws with the opportunity to seek review of the sanction or remedy, including review of alleged substantive or procedural errors, in a court or other independent tribunal established under that Party's laws.

5. Each Party shall authorise its national competition authorities to resolve alleged violations voluntarily by consent of the authority and the person subject to the enforcement action. A Party may provide for such voluntary resolution to be subject to judicial or independent tribunal approval or a public comment period before becoming final.

6. If a Party's national competition authority issues a public notice that reveals the existence of a pending or ongoing investigation, that authority shall avoid implying in that notice that the person referred to in that notice has engaged in the alleged conduct or violated the Party's national competition laws.

7. If a Party's national competition authority alleges a violation of its national competition laws, that authority shall be responsible for establishing the legal and factual basis for the alleged violation in an enforcement proceeding.5

8. Each Party shall provide for the protection of business confidential information, and other information treated as confidential under its law, obtained by its national competition authorities during the investigative process. If a Party's national competition authority uses or intends to use that information in an enforcement proceeding, the Party shall, if it is permissible under its law and as appropriate, provide a procedure to allow the person under investigation timely access to information that is necessary to prepare an adequate defence to the national competition authority's allegations.

9. Each Party shall ensure that its national competition authorities afford a person under investigation for possible violation of the national competition laws of that Party reasonable opportunity to consult with those competition authorities with respect to significant legal, factual or procedural issues that arise during the investigation.

Article 16.3: Private Rights of Action6

1. For the purposes of this Article, "private right of action" means the right of a person to seek redress, including injunctive, monetary or other remedies, from a court or other independent tribunal for injury to that person's business or property caused by a violation of national competition laws, either independently or following a finding of violation by a national competition authority.

2. Recognising that a private right of action is an important supplement to the public enforcement of national competition laws, each Party should adopt or maintain laws or other measures that provide an independent private right of action.

3. If a Party does not adopt or maintain laws or other measures that provide an independent private right of action, the Party shall adopt or maintain laws or other measures that provide a right that allows a person:

(a) to request that the national competition authority initiate an investigation into an alleged violation of national competition laws; and

(b) to seek redress from a court or other independent tribunal following a finding of violation by the national competition authority.

4. Each Party shall ensure that a right provided pursuant to paragraph 2 or 3 is available to persons of another Party on terms that are no less favourable than those available to its own persons.

5. A Party may establish reasonable criteria for the exercise of any rights it creates or maintains in accordance with this Article.

Article 16.4: Cooperation

1. The Parties recognise the importance of cooperation and coordination between their respective national competition authorities to foster effective competition law enforcement in the free trade area. Accordingly, each Party shall:

(a) cooperate in the area of competition policy by exchanging information on the development of competition policy; and

(b) cooperate, as appropriate, on issues of competition law enforcement, including through notification, consultation and the exchange of information.

2. A Party's national competition authorities may consider entering into a cooperation arrangement or agreement with the competition authorities of another Party that sets out mutually agreed terms of cooperation.

3. The Parties agree to cooperate in a manner compatible with their respective laws, regulations and important interests, and within their reasonably available resources.

Article 16.5: Technical Cooperation

Recognising that the Parties can benefit by sharing their diverse experience in developing, applying and enforcing competition law and in developing and implementing competition policies, the Parties shall consider undertaking mutually agreed technical cooperation activities, subject to available resources, including:

(a) providing advice or training on relevant issues, including through the exchange of officials;

(b) exchanging information and experiences on competition advocacy, including ways to promote a culture of competition; and

Article 16.6: Consumer Protection

1. The Parties recognise the importance of consumer protection policy and enforcement to creating efficient and competitive markets and enhancing consumer welfare in the free trade area.

2. For the purposes of this Article, fraudulent and deceptive commercial activities refers to those fraudulent and deceptive commercial practices that cause actual harm to consumers, or that pose an imminent threat of such harm if not prevented, for example:

(a) a practice of making misrepresentations of material fact, including implied factual misrepresentations, that cause significant detriment to the economic interests of misled consumers;

(b) a practice of failing to deliver products or provide services to consumers after the consumers are charged; or

3. Each Party shall adopt or maintain consumer protection laws or other laws or regulations that proscribe fraudulent and deceptive commercial activities.

4. The Parties recognise that fraudulent and deceptive commercial activities increasingly transcend national borders and that cooperation and coordination between the Parties is desirable to effectively address these activities.

5. Accordingly, the Parties shall promote, as appropriate, cooperation and coordination on matters of mutual interest related to fraudulent and deceptive commercial activities, including in the enforcement of their consumer protection laws.

6. The Parties shall endeavour to cooperate and coordinate on the matters set out in this Article through the relevant national public bodies or officials responsible for consumer protection policy, laws or enforcement, as determined by each Party and compatible with their respective laws, regulations and important interests and within their reasonably available resources.

Article 16.7: Transparency

1. The Parties recognise the value of making their competition enforcement policies as transparent as possible.

2. Recognising the value of the APEC Competition Law and Policy Database in enhancing the transparency of national competition laws, policies and enforcement activities, each Party shall endeavour to maintain and update its information on that database.

3. On request of another Party, a Party shall make available to the requesting Party public information concerning:

(a) its competition law enforcement policies and practices; and

(b) exemptions and immunities to its national competition laws, provided that the request specifies the particular good or service and market of concern and includes information explaining how the exemption or immunity may hinder trade or investment between the Parties.

4. Each Party shall ensure that a final decision finding a violation of its national competition laws is made in writing and sets out, in non-criminal matters, findings of fact and the reasoning, including legal and, if applicable, economic analysis, on which the decision is based.

5. Each Party shall further ensure that a final decision referred to in paragraph 4 and any order implementing that decision are published, or if publication is not practicable, are otherwise made available to the public in a manner that enables interested persons and other Parties to become acquainted with them. Each Party shall ensure that the version of the decision or order that is made available to the public does not include confidential information that is protected from public disclosure by its law.

Article 16.8: Consultations

In order to foster understanding between the Parties, or to address specific matters that arise under this Chapter, on request of another Party, a Party shall enter into consultations with the requesting Party. In its request, the requesting Party shall indicate, if relevant, how the matter affects trade or investment between the Parties. The Party addressed shall accord full and sympathetic consideration to the concerns of the requesting Party.

Article 16.9: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.

ANNEX 16-A:

APPLICATION OF ARTICLE 16.2 (PROCEDURAL FAIRNESS IN COMPETITION LAW ENFORCEMENT), ARTICLE 16.3 (PRIVATE RIGHTS OF ACTION) AND ARTICLE 16.4 (COOPERATION) TO BRUNEI DARUSSALAM

1. If as of the date of entry into force of this Agreement, Brunei Darussalam does not have a national competition law which is in force and has not established a national competition authority, Article 16.2 (Procedural Fairness in Competition Law Enforcement), Article 16.3 (Private Rights of Action) and Article 16.4 (Cooperation) shall not apply to Brunei Darussalam for a period of no longer than 10 years after that date.

2. If Brunei Darussalam establishes a national competition authority or authorities before the end of the 10-year period, Article 16.2 (Procedural Fairness in Competition Law Enforcement), Article 16.3 (Private Rights of Action) and Article 16.4 (Cooperation) shall apply to Brunei Darussalam from the date of establishment.

3. During the 10 year period, Brunei Darussalam shall take such steps as may be necessary to ensure that it is in compliance with Article 16.2 (Procedural Fairness in Competition Law Enforcement), Article 16.3 (Private Rights of Action) and Article 16.4 (Cooperation) at the end of the 10-year period and shall endeavour to comply with these obligations before the end of such period. Upon request of a Party, Brunei Darussalam shall inform the Parties of its progress since entry into force of the Agreement in developing and implementing an appropriate national competition law and establishing a national competition authority or authorities.

CHAPTER 17

STATE-OWNED ENTERPRISES AND DESIGNATED MONOPOLIES

Article 17.1: Definitions

For the purposes of this Chapter:

Arrangement means the Arrangement on Officially Supported Export Credits, developed within the framework of the Organization for Economic Co-operation and Development (OECD), or a successor undertaking, whether developed within or outside of the OECD framework, that has been adopted by at least 12 original WTO Members that were Participants to the Arrangement as of January 1, 1979;

commercial activities means activities which an enterprise undertakes with an orientation toward profit-making1and which result in the production of a good or supply of a service that will be sold to a consumer in the relevant market in quantities and at prices determined by the enterprise;

commercial considerations means price, quality, availability, marketability, transportation, and other terms and conditions of purchase or sale, or other factors that would normally be taken into account in the commercial decisions of a privately owned enterprise in the relevant business or industry;

designate means to establish, designate or authorise a monopoly, or to expand the scope of a monopoly to cover an additional good or service;

designated monopoly means a privately owned monopoly that is designated after the date of entry into force of this Agreement and any government monopoly that a Party designates or has designated;

government monopoly means a monopoly that is owned, or controlled through ownership interests, by a Party or by another government monopoly;

independent pension fund means an enterprise that is owned, or controlled through ownership interests, by a Party that:

(a) is engaged exclusively in the following activities:

(i) administering or providing a plan for pension, retirement, social security, disability, death or employee benefits, or any combination thereof solely for the benefit of natural persons who are contributors to such a plan and their beneficiaries; or

(ii) investing the assets of these plans;

(b) has a fiduciary duty to the natural persons referred to in subparagraph (a)(i); and

(c) is free from investment direction from the government of the Party; market means the geographical and commercial market for a good or service;

monopoly means an entity, including a consortium or government agency, that in any relevant market in the territory of a Party is designated as the sole provider or purchaser of a good or service, but does not include an entity that has been granted an exclusive intellectual property right solely by reason of the grant;

non-commercial assistance4 means assistance to a state-owned enterprise by virtue of that state-owned enterprise's government ownership or control, where:

(a) "assistance" means:

(i) direct transfers of funds or potential direct transfers of funds or liabilities, such as:

(A) grants or debt forgiveness;

(B) loans, loan guarantees or other types of financing on terms more favourable than those commercially available to that enterprise; or

(C) equity capital inconsistent with the usual investment practice, including for the provision of risk capital, of private investors; or

(ii) goods or services other than general infrastructure on terms more favourable than those commercially available to that enterprise;

(b) "by virtue of that state-owned enterprise's government ownership or control" 5 means that the Party or any of the Party's state enterprises or state-owned enterprises:

(i) explicitly limits access to the assistance to the Party's state owned enterprises;

(ii) provides assistance which is predominately used by the Party's state-owned enterprises;

(iii) provides a disproportionately large amount of the assistance to the Party's state-owned enterprises; or

(iv) otherwise favours the Party's state-owned enterprises through the use of its discretion in the provision of assistance;

public service mandate means a government mandate pursuant to which a state-owned enterprise makes available a service, directly or indirectly, to the general public in its territory;

sovereign wealth fund means an enterprise owned, or controlled through ownership interests, by a Party that:

(a) serves solely as a special purpose investment fund or arrangement7for asset management, investment, and related activities, using financial assets of a Party; and

(b) is a Member of the International Forum of Sovereign Wealth Funds or endorses the Generally Accepted Principles and Practices ("Santiago Principles") issued by the International Working Group of Sovereign Wealth Funds, October 2008, or such other principles and practices as may be agreed to by the Parties, and includes any special purpose vehicles established solely for such activities described in subparagraph (a) wholly owned by the enterprise, or wholly owned by the Party but managed by the enterprise; and

state-owned enterprise means an enterprise that is principally engaged in commercial activities in which a Party:

(a) directly owns more than 50 per cent of the share capital;

(b) controls, through ownership interests, the exercise of more than 50 per cent of the voting rights; or

Article 17.2: Scope8

1. This Chapter shall apply with respect to the activities of state-owned enterprises and designated monopolies of a Party that affect trade or investment between Parties within the free trade area.

2. Nothing in this Chapter shall prevent a central bank or monetary authority of a Party from performing regulatory or supervisory activities or conducting monetary and related credit policy and exchange rate policy.

3. Nothing in this Chapter shall prevent a financial regulatory body of a Party, including a non-governmental body, such as a securities or futures exchange or market, clearing agency, or other organisation or association, from exercising regulatory or supervisory authority over financial services suppliers.

4. Nothing in this Chapter shall prevent a Party, or one of its state enterprises or state-owned enterprises from undertaking activities for the purpose of the resolution of a failing or failed financial institution or any other failing or failed enterprise principally engaged in the supply of financial services.

5. This Chapter shall not apply with respect to a sovereign wealth fund of a Party, except:

(a) Article 17.6.1 and Article 17.6.3 (Non-commercial Assistance) shall apply with respect to a Party's indirect provision of non-commercial assistance through a sovereign wealth fund; and

(b) Article 17.6.2 (Non-commercial Assistance) shall apply with respect to a sovereign wealth fund's provision of non-commercial assistance.

6. This Chapter shall not apply with respect to:

(a) an independent pension fund of a Party; or

(b) an enterprise owned or controlled by an independent pension fund of a Party, except:

(i) Article 17.6.1 and Article 17.6.3 (Non-commercial Assistance) shall apply with respect to a Party's direct or indirect provision of non-commercial assistance to an enterprise owned or controlled by an independent pension fund; and

(ii) Article 17.6.1 and Article 17.6.3 (Non-commercial Assistance) shall apply with respect to a Party's indirect provision of non commercial assistance through an enterprise owned or controlled by an independent pension fund.

7. This Chapter shall not apply to government procurement.

8. Nothing in this Chapter shall prevent a state-owned enterprise of a Party from providing goods or services exclusively to that Party for the purposes of carrying out that Party's governmental functions.

9. Nothing in this Chapter shall be construed to prevent a Party from:

(a) establishing or maintaining a state enterprise or a state-owned enterprise; or

(b) designating a monopoly.

10. Article 17.4 (Non-discriminatory Treatment and Commercial Considerations), Article 17.6 (Non-commercial Assistance) and Article 17.10 (Transparency) shall not apply to any service supplied in the exercise of governmental authority.11

11. Article 17.4.1(b), Article 17.4.1(c), Article 17.4.2(b) and Article 17.4.2(c) (Non discriminatory Treatment and Commercial Considerations) shall not apply to the extent that a Party's state-owned enterprise or designated monopoly makes purchases and sales of goods or services pursuant to:

(a) any existing non-conforming measure that the Party maintains, continues, renews or amends in accordance with Article 9.12.1 (Non-Conforming Measures), Article 10.7.1 (Non-Conforming Measures) or Article 11.10.1 (Non-Conforming Measures), as set out in its Schedule to Annex I or in Section A of its Schedule to Annex III; or

(b) any non-conforming measure that the Party adopts or maintains with respect to sectors, subsectors, or activities in accordance with Article 9.12.2 (Non-Conforming Measures), Article 10.7.2 (Non-Conforming Measures) or Article 11.10.2 (Non-Conforming Measures), as set out in its Schedule to Annex II or in Section B of its Schedule to Annex III.

Article 17.3: Delegated Authority

Each Party shall ensure that when its state-owned enterprises, state enterprises and designated monopolies exercise any regulatory, administrative or other governmental authority that the Party has directed or delegated to such entities to carry out, those entities act in a manner that is not inconsistent with that Party's obligations under this Agreement.12

Article 17.4: Non-discriminatory Treatment and Commercial Considerations

1. Each Party shall ensure that each of its state-owned enterprises, when engaging in commercial activities:

(a) acts in accordance with commercial considerations in its purchase or sale of a good or service, except to fulfil any terms of its public service mandate that are not inconsistent with subparagraph (c)(ii);

(b) in its purchase of a good or service:

(i) accords to a good or service supplied by an enterprise of another Party treatment no less favourable than it accords to a like good or a like service supplied by enterprises of the Party, of any other Party or of any non-Party; and

(ii) accords to a good or service supplied by an enterprise that is a covered investment in the Party's territory treatment no less favourable than it accords to a like good or a like service supplied by enterprises in the relevant market in the Party's territory that are investments of investors of the Party, of any other Party or of any non-Party; and

(i) accords to an enterprise of another Party treatment no less favourable than it accords to enterprises of the Party, of any other Party or of any non-Party; and

(ii) accords to an enterprise that is a covered investment in the Party's territory treatment no less favourable than it accords to enterprises in the relevant market in the Party's territory that are investments of investors of the Party, of any other Party or of any non-Party.13

2. Each Party shall ensure that each of its designated monopolies:

(a) acts in accordance with commercial considerations in its purchase or sale of the monopoly good or service in the relevant market, except to fulfil any terms of its designation that are not inconsistent with subparagraph (b), (c) or (d);

(b) in its purchase of the monopoly good or service:

(i) accords to an enterprise of another Party treatment no less favourable than it accords to enterprises of the Party, of any other Party or of any non-Party; and

(d) does not use its monopoly position to engage in, either directly or indirectly, including through its dealings with its parent, subsidiaries or other entities the Party or the designated monopoly owns, anticompetitive practices in a non-monopolised market in its territory that negatively affect trade or investment between the Parties.

3. Paragraphs 1(b) and 1(c) and paragraphs 2(b) and 2(c) do not preclude a state owned enterprise or designated monopoly from:

(a) purchasing or selling goods or services on different terms or conditions including those relating to price; or

(b) refusing to purchase or sell goods or services, provided that such differential treatment or refusal is undertaken in accordance with commercial considerations.

Article 17.5: Courts and Administrative Bodies

1. Each Party shall provide its courts with jurisdiction over civil claims against an enterprise owned or controlled through ownership interests by a foreign government based on a commercial activity carried on in its territory. This shall not be construed to require a Party to provide jurisdiction over such claims if it does not provide jurisdiction over similar claims against enterprises that are not owned or controlled through ownership interests by a foreign government.

2. Each Party shall ensure that any administrative body that the Party establishes or maintains that regulates a state-owned enterprise exercises its regulatory discretion in an impartial manner with respect to enterprises that it regulates, including enterprises that are not state-owned enterprises.

Article 17.6: Non-commercial Assistance

1. No Party shall cause17 adverse effects to the interests of another Party through the use of non-commercial assistance that it provides, either directly or indirectly18, to any of its state-owned enterprises with respect to:

(a) the production and sale of a good by the state-owned enterprise;

(b) the supply of a service by the state-owned enterprise from the territory of the Party into the territory of another Party; or

(c) the supply of a service in the territory of another Party through an enterprise that is a covered investment in the territory of that other Party or any other Party.

2. Each Party shall ensure that its state enterprises and state-owned enterprises do not cause adverse effects to the interests of another Party through the use of non commercial assistance that the state enterprise or state-owned enterprise provides to any of its state-owned enterprises with respect to:

(a) the production and sale of a good by the state-owned enterprise;

(b) the supply of a service by the state-owned enterprise from the territory of the Party into the territory of another Party; or

(c) the supply of a service in the territory of another Party through an enterprise that is a covered investment in the territory of that other Party or any other Party.

3. No Party shall cause injury to a domestic industry of another Party through the use of non-commercial assistance that it provides, either directly or indirectly, to any of its state-owned enterprises that is a covered investment in the territory of that other Party in circumstances where:

(a) the non-commercial assistance is provided with respect to the production and sale of a good by the state-owned enterprise in the territory of the other Party; and

(b) a like good is produced and sold in the territory of the other Party by the domestic industry of that other Party.

4. A service supplied by a state-owned enterprise of a Party within that Party's territory shall be deemed not to cause adverse effects.

Article 17.7: Adverse Effects

1. For the purposes of Article 17.6.1 and Article 17.6.2 (Non-commercial Assistance), adverse effects arise if the effect of the non-commercial assistance is:

(a) that the production and sale of a good by a Party's state-owned enterprise that has received the non-commercial assistance displaces or impedes from the Party's market imports of a like good of another Party or sales of a like good produced by an enterprise that is a covered investment in the territory of the Party;

(b) that the production and sale of a good by a Party's state-owned enterprise that has received the non-commercial assistance displaces or impedes from:

(i) the market of another Party sales of a like good produced by an enterprise that is a covered investment in the territory of that other Party, or imports of a like good of any other Party; or

(ii) the market of a non-Party imports of a like good of another Party;

(c) a significant price undercutting by a good produced by a Party's state owned enterprise that has received the non-commercial assistance and sold by the enterprise in:

(i) the market of a Party as compared with the price in the same market of imports of a like good of another Party or a like good that is produced by an enterprise that is a covered investment in the territory of the Party, or significant price suppression, price depression or lost sales in the same market; or

(ii) the market of a non-Party as compared with the price in the same market of imports of a like good of another Party, or significant price suppression, price depression or lost sales in the same market;

(d) that services supplied by a Party's state-owned enterprise that has received the non-commercial assistance displace or impede from the market of another Party a like service supplied by a service supplier of that other Party or any other Party; or

(e) a significant price undercutting by a service supplied in the market of another Party by a Party's state-owned enterprise that has received the non-commercial assistance as compared with the price in the same market of a like service supplied by a service supplier of that other Party or any other Party, or significant price suppression, price depression or lost sales in the same market.

2. For the purposes of paragraphs 1(a), 1(b) and 1(d), the displacing or impeding of a good or service includes any case in which it has been demonstrated that there has been a significant change in relative shares of the market to the disadvantage of the like good or like service. "Significant change in relative shares of the market" shall include any of the following situations:

(a) there is a significant increase in the market share of the good or service of the Party's state-owned enterprise;

(b) the market share of the good or service of the Party's state-owned enterprise remains constant in circumstances in which, in the absence of the non-commercial assistance, it would have declined significantly; or

(c) the market share of the good or service of the Party's state-owned enterprise declines, but at a significantly slower rate than would have been the case in the absence of the non-commercial assistance.

The change must manifest itself over an appropriately representative period sufficient to demonstrate clear trends in the development of the market for the good or service concerned, which, in normal circumstances, shall be at least one year.

3. For the purposes of paragraphs 1(c) and 1(e), price undercutting shall include any case in which such price undercutting has been demonstrated through a comparison of the prices of the good or service of the state-owned enterprise with the prices of the like good or service.

4. Comparisons of the prices in paragraph 3 shall be made at the same level of trade and at comparable times, and due account shall be taken for factors affecting price comparability. If a direct comparison of transactions is not possible, the existence of price undercutting may be demonstrated on some other reasonable basis, such as, in the case of goods, a comparison of unit values.

5. Non-commercial assistance that a Party provides:

(a) before the signing of this Agreement; or

(b) within three years after the signing of this Agreement, pursuant to a law that is enacted, or contractual obligation undertaken, prior to the signing of this Agreement,

shall be deemed not to cause adverse effects.

6. For the purposes of Article 17.6.1(b) and Article 17.6.2(b) (Non-commercial Assistance), the initial capitalisation of a state-owned enterprise, or the acquisition by a Party of a controlling interest in an enterprise, that is principally engaged in the supply of services within the territory of the Party, shall be deemed not to cause adverse effects.

Article 17.8: Injury

1. For the purposes of Article 17.6.3 (Non-commercial Assistance), the term "injury" shall be taken to mean material injury to a domestic industry, threat of material injury to a domestic industry or material retardation of the establishment of such an industry. A determination of material injury shall be based on positive evidence and involve an objective examination of the relevant factors, including the volume of production by the covered investment that has received non-commercial assistance, the effect of such production on prices for like goods produced and sold by the domestic industry, and the effect of such production on the domestic industry producing like goods.

2. With regard to the volume of production by the covered investment that has received non-commercial assistance, consideration shall be given as to whether there has been a significant increase in the volume of production, either in absolute terms or relative to production or consumption in the territory of the Party in which injury is alleged to have occurred. With regard to the effect of the production by the covered investment on prices, consideration shall be given as to whether there has been a significant price undercutting by the goods produced and sold by the covered investment as compared with the price of like goods produced and sold by the domestic industry, or whether the effect of production by the covered investment is otherwise to depress prices to a significant degree or to prevent price increases, which otherwise would have occurred, to a significant degree. No one or several of these factors can necessarily give decisive guidance.

3. The examination of the impact on the domestic industry of the goods produced and sold by the covered investment that received the non-commercial assistance shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the industry, such as actual and potential decline in output, sales, market share, profits, productivity, return on investments, or utilisation of capacity; factors affecting domestic prices; actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital or investments and, in the case of agriculture, whether there has been an increased burden on government support programmes. This list is not exhaustive, nor can one or several of these factors necessarily give decisive guidance.

4. It must be demonstrated that the goods produced and sold by the covered investment are, through the effects24 of the non-commercial assistance, causing injury within the meaning of this Article. The demonstration of a causal relationship between the goods produced and sold by the covered investment and the injury to the domestic industry shall be based on an examination of all relevant evidence. Any known factors other than the goods produced by the covered investment which at the same time are injuring the domestic industry shall be examined, and the injuries caused by these other factors must not be attributed to the goods produced and sold by the covered investment that has received non-commercial assistance. Factors which may be relevant in this respect include, among other things, the volumes and prices of other like goods in the market in question, contraction in demand or changes in the patterns of consumption, and developments in technology and the export performance and productivity of the domestic industry.

5. A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility and shall be considered with special care. The change in circumstances which would create a situation in which non commercial assistance to the covered investment would cause injury must be clearly foreseen and imminent. In making a determination regarding the existence of a threat of material injury, there should be consideration of relevant factors and of whether the totality of the factors considered lead to the conclusion that further availability of goods produced by the covered investment is imminent and that, unless protective action is taken, material injury would occur.

Article 17.9: Party-Specific Annexes

1. Article 17.4 (Non-discriminatory Treatment and Commercial Considerations) and Article 17.6 (Non-commercial Assistance) shall not apply with respect to the non conforming activities of state-owned enterprises or designated monopolies that a Party lists in its Schedule to Annex IV in accordance with the terms of the Party's Schedule.

2. Article 17.4 (Non-discriminatory Treatment and Commercial Considerations), Article 17.5 (Courts and Administrative Bodies), Article 17.6 (Non-commercial Assistance) and Article 17.10 (Transparency) shall not apply with respect to a Party's state-owned enterprises or designated monopolies as set out in Annex 17-D

(Application to Sub-Central State-Owned Enterprises and Designated Monopolies). 3. (a) In the case of Singapore, Annex 17-E (Singapore) shall apply. (b) In the case of Malaysia, Annex 17-F (Malaysia) shall apply.

Article 17.10: Transparency

1. Each Party shall provide to the other Parties or otherwise make publicly available on an official website a list of its state-owned enterprises no later than six months after the date of entry into force of this Agreement for that Party, and thereafter shall update the list annually.

2. Each Party shall promptly notify the other Parties or otherwise make publicly available on an official website the designation of a monopoly or expansion of the scope of an existing monopoly and the terms of its designation.30

3. On the written request of another Party, a Party shall promptly provide the following information concerning a state-owned enterprise or a government monopoly, provided that the request includes an explanation of how the activities of the entity may be affecting trade or investment between the Parties:

(a) the percentage of shares that the Party, its state-owned enterprises or designated monopolies cumulatively own, and the percentage of votes that they cumulatively hold, in the entity;

(b) a description of any special shares or special voting or other rights that the Party, its state-owned enterprises or designated monopolies hold, to the extent these rights are different than the rights attached to the general common shares of the entity;

(d) the entity's annual revenue and total assets over the most recent three year period for which information is available;

(e) any exemptions and immunities from which the entity benefits under the Party's law; and

(f) any additional information regarding the entity that is publicly available, including annual financial reports and third-party audits, and that is sought in the written request.

4. On the written request of another Party, a Party shall promptly provide, in writing, information regarding any policy or programme it has adopted or maintains that provides for non-commercial assistance, provided that the request includes an explanation of how the policy or programme affects or could affect trade or investment

between the Parties.

5. When a Party provides a response pursuant to paragraph 4, the information it provides shall be sufficiently specific to enable the requesting Party to understand the operation of and evaluate the policy or programme and its effects or potential effects on trade or investment between the Parties. The Party responding to a request shall ensure that the response it provides contains the following information:

(a) the form of the non-commercial assistance provided under the policy or programme, for example, grant or loan;

(b) the names of the government agencies, state-owned enterprises, or state enterprises providing the non-commercial assistance and the names of the state-owned enterprises that have received or are eligible to receive the non-commercial assistance;

(d) with respect to goods, the amount per unit of the non-commercial assistance or, in cases where this is not possible, the total amount or the annual amount budgeted for the non-commercial assistance, indicating, if possible, the average amount per unit in the previous year;

(e) with respect to services, the total amount or the annual amount budgeted for the non-commercial assistance, indicating, if possible, the total amount in the previous year;

(f) with respect to policies or programmes providing for non-commercial assistance in the form of loans or loan guarantees, the amount of the loan or amount of the loan guaranteed, interest rates, and fees charged;

(g) with respect to policies or programmes providing for non-commercial assistance in the form of the provision of goods or services, the prices charged, if any;

(h) with respect to policies or programmes providing for non-commercial assistance in the form of equity capital, the amount invested, the number and a description of the shares received, and any assessments that were conducted with respect to the underlying investment decision;

(i) duration of the policy or programme or any other time-limits attached to it; and

(j) statistical data permitting an assessment of the effects of the non commercial assistance on trade or investment between the Parties.

6. If a Party considers that it has not adopted or does not maintain any policies or programmes referred to in paragraph 4, it shall so inform the requesting Party in writing.

7. If any relevant points in paragraph 5 have not been addressed in the written response, an explanation shall be provided in the written response itself.

8. The Parties recognise that the provision of information under paragraphs 5 and 7 does not prejudge the legal status of the assistance that was the subject of the request under paragraph 4 or the effects of that assistance under this Agreement.

9. When a Party provides written information pursuant to a request under this Article and informs the requesting Party that it considers the information to be confidential, the requesting Party shall not disclose the information without the prior consent of the Party providing the information.

Article 17.11: Technical Cooperation

The Parties shall, where appropriate and subject to available resources, engage in mutually agreed technical cooperation activities, including:

(a) exchanging information regarding Parties' experiences in improving the corporate governance and operation of their state-owned enterprises;

(b) sharing best practices on policy approaches to ensure a level playing field between state-owned and privately owned enterprises, including policies related to competitive neutrality; and

(c) organising international seminars, workshops or any other appropriate forum for sharing technical information and expertise related to the governance and operations of state-owned enterprises.

Article 17.12: Committee on State-Owned Enterprises and Designated Monopolies31

1. The Parties hereby establish a Committee on State-Owned Enterprises and Designated Monopolies (Committee), composed of government representatives of each Party.

2. The Committee's functions shall include:

(a) reviewing and considering the operation and implementation of this Chapter;

(b) at a Party's request, consulting on any matter arising under this Chapter;

(c) developing cooperative efforts, as appropriate, to promote the principles underlying the disciplines contained in this Chapter in the free trade area and to contribute to the development of similar disciplines in other regional and multilateral institutions in which two or more Parties participate; and

(d) undertaking other activities as the Committee may decide.

3. The Committee shall meet within one year after the date of entry into force of this Agreement, and at least annually thereafter, unless the Parties agree otherwise.

Article 17.13: Exceptions

1. Nothing in Article 17.4 (Non-discriminatory Treatment and Commercial Considerations) or Article 17.6 (Non-commercial Assistance) shall be construed to:

(a) prevent the adoption or enforcement by any Party of measures to respond temporarily to a national or global economic emergency; or

(b) apply to a state-owned enterprise with respect to which a Party has adopted or enforced measures on a temporary basis in response to a national or global economic emergency, for the duration of that emergency.

2. Article 17.4.1 (Non-discriminatory Treatment and Commercial Considerations) shall not apply with respect to the supply of financial services by a state-owned enterprise pursuant to a government mandate if that supply of financial services:

(a) supports exports or imports, provided that these services are:

(i) not intended to displace commercial financing; or

(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market;

(b) supports private investment outside the territory of the Party, provided that these services are:

(i) not intended to displace commercial financing, or

(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market; or

3. The supply of financial services by a state-owned enterprise pursuant to a government mandate shall be deemed not to give rise to adverse effects under Article 17.6.1(b) (Non-commercial Assistance) or Article 17.6.2(b), or under Article 17.6.1(c) or Article 17.6.2(c) where the Party in which the financial service is supplied requires a local presence in order to supply those services, if that supply of financial services:33

(a) supports exports and imports, provided that these services are:

(i) not intended to displace commercial financing; or

(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market;

(b) supports private investment outside the territory of the Party, provided that these services are:

(i) not intended to displace commercial financing; or

(ii) offered on terms no more favourable than those that could be obtained for comparable financial services in the commercial market; or

4. Article 17.6 (Non-commercial Assistance) shall not apply with respect to an enterprise located outside the territory of a Party over which a state-owned enterprise of that Party has assumed temporary ownership as a consequence of foreclosure or a similar action in connection with defaulted debt, or payment of an insurance claim by the state-owned enterprise, associated with the supply of the financial services referred to in paragraphs 2 and 3, provided that any support the Party, a state enterprise or state owned enterprise of the Party, provides to the enterprise during the period of temporary ownership is provided in order to recoup the state-owned enterprise's investment in accordance with a restructuring or liquidation plan that will result in the ultimate divestiture from the enterprise.

5. Article 17.4 (Non-discriminatory Treatment and Commercial Considerations), Article 17.6 (Non-commercial Assistance), Article 17.10 (Transparency) and Article 17.12 (Committee on State-Owned Enterprises and Designated Monopolies) shall not apply with respect to a state-owned enterprise or designated monopoly if in any one of the three previous consecutive fiscal years, the annual revenue derived from the commercial activities of the state-owned enterprise or designated monopoly was less than a threshold amount which shall be calculated in accordance with Annex 17-A.

Article 17.14: Further Negotiations

Within five years of the date of entry into force of this Agreement, the Parties shall conduct further negotiations on extending the application of the disciplines in this Chapter in accordance with Annex 17-C (Further Negotiations).

Article 17.15: Process for Developing Information

Annex 17-B (Process for Developing Information Concerning State-Owned Enterprises and Designated Monopolies) shall apply in any dispute under Chapter 28 (Dispute Settlement) regarding a Party's conformity with Article 17.4 (Non discriminatory Treatment and Commercial Considerations) or Article 17.6 (Non commercial Assistance).

ANNEX 17-A

THRESHOLD CALCULATION

1. On the date of entry into force of this Agreement, the threshold referred to in Article 17.13.5 (Exceptions) shall be 200 million Special Drawing Rights (SDRs).

2. The amount of the threshold shall be adjusted at three-year intervals with each adjustment taking effect on 1 January. The first adjustment shall take place on the first 1 January following the entry into force of this Agreement, in accordance with the formula set out in this Annex.

3. The threshold shall be adjusted for changes in general price levels using a composite SDR inflation rate, calculated as a weighted sum of cumulative per cent changes in the Gross Domestic Product (GDP) deflators of SDR component currencies over the three-year period ending 30 June of the year prior to the adjustment taking effect, and using the following formula:

4. Each Party shall convert the threshold into national currency terms where the conversion rates shall be the average of monthly values of that Party's national currency in SDR terms over the three-year period to 30 June of the year before the threshold is to take effect. Each Party shall notify the other Parties of their applicable threshold in their respective national currencies.

5. For the purposes of this Chapter, all data shall be drawn from the International Monetary Fund's International Financial Statistics database.

6. The Parties shall consult if a major change in a national currency vis-à-vis the SDR were to create a significant problem with regard to the application of this Chapter.

ANNEX 17-B

PROCESS FOR DEVELOPING INFORMATION CONCERNING STATE OWNED ENTERPRISES AND DESIGNATED MONOPOLIES

1. If a panel has been established pursuant to Chapter 28 (Dispute Settlement) to examine a complaint arising under Article 17.4 (Non-discriminatory Treatment and Commercial Considerations) or Article 17.6 (Non-commercial Assistance), the disputing Parties may exchange written questions and responses, as set forth in paragraphs 2, 3 and 4, to obtain information relevant to the complaint that is not otherwise readily available.

2. A disputing Party (questioning Party) may provide written questions to another disputing Party (answering Party) within 15 days of the date the panel is established. The answering Party shall provide its responses to the questions to the questioning Party within 30 days of the date it receives the questions.

3. The questioning Party may provide any follow-up written questions to the answering Party within 15 days of the date it receives the responses to the initial questions. The answering Party shall provide its responses to the follow-up questions to the questioning Party within 30 days of the date it receives the follow-up questions.

4. If the questioning Party considers that the answering Party has failed to cooperate in the information-gathering process under this Annex, the questioning Party shall inform the panel and the answering Party in writing within 30 days of the date the responses to the questioning Party's final questions are due, and provide the basis for its

view. The panel shall afford the answering Party an opportunity to reply in writing.

5. A disputing Party that provides written questions or responses to another disputing Party pursuant to these procedures shall, on the same day, provide the questions or answers to the panel. In the event that a panel has not yet been composed, each disputing Party shall, upon the composition of the panel, promptly provide the panel with any questions or responses it has provided to the other disputing Party.

6. The answering Party may designate information in its responses as confidential information in accordance with the procedures set out in the Rules of Procedure established under Article 27.2.1(f) (Functions of the Commission) or other rules of procedure agreed to by the disputing Parties.

7. The time periods in paragraphs 2, 3 and 4 may be modified upon agreement of the disputing Parties or approval by the panel.

8. In determining whether a disputing Party has failed to cooperate in the information-gathering process, the panel shall take into account the reasonableness of the questions and the efforts the answering Party has made to respond to the questions in a cooperative and timely manner.

9. In making findings of fact and its initial report, the panel should draw adverse inferences from instances of non-cooperation by a disputing Party in the information gathering process.

10. The panel may deviate from the time period set out in Chapter 28 (Dispute Settlement) for the issuance of the initial report if necessary to accommodate the information-gathering process.

11. The panel may seek additional information from a disputing Party that was not provided to the panel through the information-gathering process where the panel considers the information necessary to resolve the dispute. However, the panel shall not request additional information to complete the record where the information would support a Party's position and the absence of that information in the record is the result of that Party's non-cooperation in the information-gathering process.

ANNEX 17-C

FURTHER NEGOTIATIONS

Within five years of the date of entry into force of this Agreement, the Parties shall conduct further negotiations on extending the application of:

(a) the disciplines in this Chapter to the activities of state-owned enterprises that are owned or controlled by a sub-central level of government, and designated monopolies designated by a sub-central level of government, where such activities have been listed in Annex 17-D (Application to Sub-Central State-Owned Enterprises and Designated Monopolies); and

(b) the disciplines in Article 17.6 (Non-commercial Assistance) and Article 17.7 (Adverse Effects) to address effects caused, in a market of a non Party, by the supply of services by a state-owned enterprise.

ANNEX 17-D

APPLICATION TO SUB-CENTRAL

STATE-OWNED ENTERPRISES AND DESIGNATED MONOPOLIES

Pursuant to Article 17.9.2 (Party-Specific Annexes), the following obligations shall not apply with respect to a state-owned enterprise owned or controlled by a sub central level of government and a designated monopoly designated by a sub-central level of government:36

(a) For Australia:

(i) Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Australia;

(iv) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(v) Article 17.10.1 (Transparency).

(b) For Canada:

(i) Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(iv) Article 17.5.2 (Courts and Administrative Bodies), with respect to administrative regulatory bodies established or maintained by a sub-central level of government;

(v) Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment;

(vi) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance);

(vii) Article 17.6.3 (Non-commercial Assistance);

(viii) Article 17.10.1 (Transparency); and

(ix) Article 17.10.4 (Transparency), with respect to a policy or program adopted or maintained by a sub-central level of government.

(i) Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(iv) Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Chile;

(v) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(vi) Article 17.10.1 (Transparency).

(d) For Japan:

(i) Article 17.4.1 (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.2(a) (Non-commercial Assistance) with respect to the production and sale of a good:

(A) by a state-owned enterprise in competition with a like good produced and sold by a covered investment of another Party in the territory of Japan; or

(B) by a state-owned enterprise that is a covered investment in competition with like good produced and sold by a covered investment of another Party in the territory of any other Party;

(iv) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance);

(v) Article 17.6.3 (Non-commercial Assistance); and

(vi) Article 17.10.1 (Transparency).

(e) For Malaysia:

(i) Article 17.4 (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.5.2 (Courts and Administrative Bodies), with respect to administrative regulatory bodies established or maintained by a sub-central level of government;

(iv) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(v) Article 17.10 (Transparency).

(f) For Mexico:

(i) Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(v) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(vi) Article 17.10 (Transparency).

(g) For New Zealand:

(i) Article 17.4.1 (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.6.1 (a) (Non-commercial Assistance) and Article 17.6.2 (a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of New Zealand;

(iv) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance);

(v) Article 17.6.3 (Non-commercial Assistance); and

(vi) Article 17.10.1 (Transparency).

(h) For Peru:

(i) Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations);

(iii) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations);

(v) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(vi) Article 17.10.1 (Transparency).

(i) For the United States:

(i) Article 17.4.1 (a) (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.4.1 (b) (Non-discriminatory Treatment and Commercial Considerations), with respect to purchases of a good or service;

(iii) Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations);

(iv) Article 17.4.2 (Non-discriminatory Treatment and Commercial Considerations), with respect to designated monopolies designated by a sub-central level of government;

(v) Article 17.5.2 (Courts and Administrative Bodies), with respect to administrative regulatory bodies established or maintained by a sub-central level of government;

(vi) Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of the United States;

(vii) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(viii) Article 17.10.1 (Transparency).

(j) For Viet Nam:

(i) Article 17.4 (Non-discriminatory Treatment and Commercial Considerations);

(ii) Article 17.5.2 (Courts and Administrative Bodies), with respect to administrative regulatory bodies established or maintained by a sub-central level of government;

(iv) Article 17.6.1(b) and (c) (Non-commercial Assistance), and Article 17.6.2(b) and (c) (Non-commercial Assistance); and

(v) Article 17.10 (Transparency).

ANNEX 17-E

SINGAPORE

1. Neither Singapore, nor a sovereign wealth fund of Singapore37, shall take action to direct or influence decisions of a state-owned enterprise owned or controlled by a sovereign wealth fund of Singapore, including through the exercise of any rights or ownership interests over such state-owned enterprises, except in a manner consistent with this Chapter. However, Singapore, or a sovereign wealth fund of Singapore, may exercise its voting rights in any state-owned enterprise it owns or controls through ownership interests in a manner that is not inconsistent with this Chapter.

2. Article 17.4.1 (Non-discriminatory Treatment and Commercial Considerations) shall not apply with respect to a state-owned enterprise owned or controlled by a sovereign wealth fund of Singapore.

3. Article 17.6.2 (Non-commercial Assistance) shall not apply with respect to a state-owned enterprise owned or controlled by a sovereign wealth fund of Singapore, unless:

(a) in the five-year period preceding the purported breach of Article 17.6.2 (Non-commercial Assistance), Singapore or a sovereign wealth fund of Singapore has:

(i) appointed the CEO or a majority of the other senior management of the state-owned enterprise;

(ii) appointed a majority of the members of the board of directors of that state-owned enterprise; or

(iii) taken action to exercise its legal rights in that state-owned enterprise to actively direct and control the business decisions of that state-owned enterprise in a manner that would be inconsistent with the obligations in this Chapter; or

(b) the state-owned enterprise, pursuant to law, government policy or other measures, is required to:

(i) provide non-commercial assistance to another state-owned enterprise; or

(ii) make decisions about its commercial purchase or sales.

4. Singapore is deemed to comply with Article 17.10.1 (Transparency) with respect to any state-owned enterprise owned or controlled by a sovereign wealth fund of Singapore if:

(a) Singapore provides to the other Parties or otherwise makes publicly available on an official website the annual report of the sovereign wealth fund which owns that state-owned enterprise;

(b) any class of securities of that state-owned enterprise is listed on a securities exchange regulated by a member of an internationally recognised securities commissions body including the International Organisation of Securities Commissions; or

(c) that state-owned enterprise files its annual financial reports based on internationally-recognised financial reporting standards including the International Financial Reporting Standards.

ANNEX 17-F

MALAYSIA

Permodalan Nasional Berhad

1. The obligations in this Chapter shall not apply with respect to Permodalan Nasional Berhad or an enterprise owned or controlled by Permodalan Nasional Berhad, provided that Permodalan Nasional Berhad:

(a) engages exclusively in the following activities:

(i) administering or providing a plan for members of the public relating to collective investment schemes for the purpose of enhancing their savings and investments, in furtherance of a national agenda solely for the benefit of natural persons who are participants to such a plan and their beneficiaries; or

(ii) investing the assets of these plans;

(b) has a fiduciary duty to the natural persons referenced in subparagraph (a); and

2. Notwithstanding paragraph 1 of this Annex, Article 17.6.1 (Non-commercial Assistance) and Article 17.6.3 shall apply with respect to Malaysia's:

(a) direct or indirect provision of non-commercial assistance to an enterprise owned or controlled by Permodalan Nasional Berhad;41 and

(b) indirect provision of non-commercial assistance through an enterprise owned or controlled by Permodalan Nasional Berhad.

Lembaga Tabung Haji

3. The obligations in this Chapter shall not apply with respect to Lembaga Tabung Haji or an enterprise owned or controlled by Lembaga Tabung Haji, provided that Lembaga Tabung Haji:

(a) engages exclusively in the following activities:

(i) administering or providing a personal savings and investment plan solely for the benefit of the natural persons who are contributors to such a plan and their beneficiaries, for the purpose of:

(A) enabling individual Muslim beneficiaries, through the investment of their savings in investment activities permissible in Islam, to support their expenditure during pilgrimage; and

(B) protecting, safeguarding the interests and ensuring the welfare of pilgrims during pilgrimage by providing various facilities and services; or

(ii) investing the assets of these plans;

(b) has a fiduciary duty to the natural persons referenced in subparagraph (a); and

4. Notwithstanding paragraph 3 of this Annex, Article 17.6.1 (Non-commercial Assistance) and Article 17.6.3 (Non-commercial Assistance), shall apply with respect to Malaysia's:

(a) direct or indirect provision of non-commercial assistance to an enterprise owned or controlled by Lembaga Tabung Haji43; and

(b) indirect provision of non-commercial assistance through an enterprise owned or controlled by Lembaga Tabung Haji.

CHAPTER 18

INTELLECTUAL PROPERTY

Section A: General Provisions

Article 18.1: Definitions

1. For the purposes of this Chapter:

Berne Convention means the Berne Convention for the Protection of Literary and Artistic Works, as revised at Paris, July 24, 1971;

Budapest Treaty means the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure (1977), as amended on September 26, 1980;

Declaration on TRIPS and Public Health means the Declaration on the TRIPS Agreement and Public Health (WT/MIN(01)/DEC/2), adopted on November 14, 2001;

geographical indication means an indication that identifies a good as originating in the territory of a Party, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin;

intellectual property refers to all categories of intellectual property that are the subject of Sections 1 through 7 of Part II of the TRIPS Agreement;

Madrid Protocol means the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, done at Madrid, June 27, 1989;

Paris Convention means the Paris Convention for the Protection of Industrial Property, as revised at Stockholm, July 14, 1967;

performance means a performance fixed in a phonogram unless otherwise specified;

with respect to copyright and related rights, the term right to authorise or prohibit refers to exclusive rights;

Singapore Treaty means the Singapore Treaty on the Law of Trademarks, done at Singapore, March 27, 2006;

UPOV 1991 means the International Convention for the Protection of New Varieties of Plants, as revised at Geneva, March 19, 1991;

WCT means the WIPO Copyright Treaty, done at Geneva, December 20, 1996; WIPO means the World Intellectual Property Organization;

for greater certainty, work includes a cinematographic work, photographic work and computer program; and

WPPT means the WIPO Performances and Phonograms Treaty, done at Geneva, December 20, 1996.

2. For the purposes of Article 18.8 (National Treatment), Article 18.31(a) (Administrative Procedures for the Protection or Recognition of Geographical Indications) and Article 18.62.1 (Related Rights):

a national means, in respect of the relevant right, a person of a Party that would meet the criteria for eligibility for protection provided for in the agreements listed in Article 18.7 (International Agreements) or the TRIPS Agreement.

Article 18.2: Objectives

The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations.

Article 18.3: Principles

1. A Party may, in formulating or amending its laws and regulations, adopt measures necessary to protect public health and nutrition, and to promote the public interest in sectors of vital importance to their socio-economic and technological development, provided that such measures are consistent with the provisions of this Chapter.

2. Appropriate measures, provided that they are consistent with the provisions of this Chapter, may be needed to prevent the abuse of intellectual property rights by right holders or the resort to practices which unreasonably restrain trade or adversely affect the international transfer of technology.

Article 18.4: Understandings in Respect of this Chapter

Having regard to the underlying public policy objectives of national systems, the Parties recognise the need to:

(a) promote innovation and creativity;

(b) facilitate the diffusion of information, knowledge, technology, culture and the arts; and

through their respective intellectual property systems, while respecting the principles of transparency and due process, and taking into account the interests of relevant stakeholders, including right holders, service providers, users and the public.

Article 18.5: Nature and Scope of Obligations

Each Party shall give effect to the provisions of this Chapter. A Party may, but shall not be obliged to, provide more extensive protection for, or enforcement of, intellectual property rights under its law than is required by this Chapter, provided that such protection or enforcement does not contravene the provisions of this Chapter. Each Party shall be free to determine the appropriate method of implementing the provisions of this Chapter within its own legal system and practice.

Article 18.6: Understandings Regarding Certain Public Health Measures

1. The Parties affirm their commitment to the Declaration on TRIPS and Public Health. In particular, the Parties have reached the following understandings regarding this Chapter:

(a) The obligations of this Chapter do not and should not prevent a Party from taking measures to protect public health. Accordingly, while reiterating their commitment to this Chapter, the Parties affirm that this Chapter can and should be interpreted and implemented in a manner supportive of each Party's right to protect public health and, in particular, to promote access to medicines for all. Each Party has the right to determine what constitutes a national emergency or other circumstances of extreme urgency, it being understood that public health crises, including those relating to HIV/AIDS, tuberculosis, malaria and other epidemics, can represent a national emergency or other circumstances of extreme urgency.

(b) In recognition of the commitment to access to medicines that are supplied in accordance with the Decision of the WTO General Council of August 30, 2003 on the Implementation of Paragraph Six of the Doha Declaration on the TRIPS Agreement and Public Health (WT/L/540) and the WTO General Council Chairman's Statement Accompanying the Decision (JOB(03)/177, WT/GC/M/82), as well as the Decision of the WTO General Council of December 6, 2005 on the Amendment of the TRIPS Agreement, (WT/L/641) and the WTO General Council Chairperson's Statement Accompanying the Decision (JOB(05)/319 and Corr. 1,WT/GC/M/100) (collectively, the "TRIPS/health solution"), this Chapter does not and should not prevent the effective utilisation of the TRIPS/health solution.

(c) With respect to the aforementioned matters, if any waiver of any provision of the TRIPS Agreement, or any amendment of the TRIPS Agreement, enters into force with respect to the Parties, and a Party's application of a measure in conformity with that waiver or amendment is contrary to the obligations of this Chapter, the Parties shall immediately consult in order to adapt this Chapter as appropriate in the light of the waiver or amendment.

2. Each Party shall notify, if it has not already done so, the WTO of its acceptance of the Protocol amending the TRIPS Agreement, done at Geneva on December 6, 2005.

Article 18.7: International Agreements

1. Each Party affirms that it has ratified or acceded to the following agreements:

(a) Patent Cooperation Treaty, as amended September 28, 1979;

(b) Paris Convention; and

2. Each Party shall ratify or accede to each of the following agreements, if it is not already a party to that agreement, by the date of entry into force of this Agreement for that Party:

(a) Madrid Protocol;

(b) Budapest Treaty;

(d) UPOV 1991;2

(e) WCT; and

(f) WPPT.

Article 18.8: National Treatment

1. In respect of all categories of intellectual property covered in this Chapter,3each Party shall accord to nationals of another Party treatment no less favourable than it accords to its own nationals with regard to the protection4of intellectual property rights.

2. With respect to secondary uses of phonograms by means of analog communications and free over-the-air broadcasting, however, a Party may limit the rights of the performers and producers of another Party to the rights its persons are accorded within the jurisdiction of that other Party.

3. A Party may derogate from paragraph 1 in relation to its judicial and administrative procedures, including requiring a national of another Party to designate an address for service of process in its territory, or to appoint an agent in its territory, provided that such derogation is:

(a) necessary to secure compliance with laws or regulations that are not inconsistent with this Chapter; and

(b) not applied in a manner that would constitute a disguised restriction on trade.

4. Paragraph 1 does not apply to procedures provided in multilateral agreements concluded under the auspices of WIPO relating to the acquisition or maintenance of intellectual property rights.

Article 18.9: Transparency

1. Further to Article 26.2 (Publication) and Article 18.73.1 (Enforcement Practices with Respect to Intellectual Property Rights), each Party shall endeavour to make available on the Internet its laws, regulations, procedures and administrative rulings of general application concerning the protection and enforcement of intellectual property rights.

2. Each Party shall, subject to its law, endeavour to make available on the Internet information that it makes public concerning applications for trademarks, geographical indications, designs, patents and plant variety rights.

3. Each Party shall, subject to its law, make available on the Internet information that it makes public concerning registered or granted trademarks, geographical indications, designs, patents and plant variety rights, sufficient to enable the public to become acquainted with those registered or granted rights.

Article 18.10: Application of Chapter to Existing Subject Matter and Prior Acts

1. Unless otherwise provided in this Chapter, including in Article 18.64 (Application of Article 18 of the Berne Convention and Article 14.6 of the TRIPS Agreement), this Chapter gives rise to obligations in respect of all subject matter existing at the date of entry into force of this Agreement for a Party and that is protected on that date in the territory of a Party where protection is claimed, or that meets or comes subsequently to meet the criteria for protection under this Chapter.

2. Unless provided in Article 18.64 (Application of Article 18 of the Berne Convention and Article 14.6 of the TRIPS Agreement), a Party shall not be required to restore protection to subject matter that on the date of entry into force of this Agreement for that Party has fallen into the public domain in its territory.

3. This Chapter does not give rise to obligations in respect of acts that occurred before the date of entry into force of this Agreement for a Party.

Article 18.11: Exhaustion of Intellectual Property Rights

Nothing in this Agreement prevents a Party from determining whether or under what conditions the exhaustion of intellectual property rights applies under its legal system.8

Section B: Cooperation

Article 18.12: Contact Points for Cooperation

Further to Article 21.3 (Contact Points for Cooperation and Capacity Building), each Party may designate and notify under Article 27.5.2 (Contact Points) one or more contact points for the purpose of cooperation under this Section.

Article 18.13: Cooperation Activities and Initiatives

The Parties shall endeavour to cooperate on the subject matter covered by this Chapter, such as through appropriate coordination, training and exchange of information between the respective intellectual property offices of the Parties, or other institutions, as determined by each Party. Cooperation may cover areas such as:

(a) developments in domestic and international intellectual property policy;

(b) intellectual property administration and registration systems; (c) education and awareness relating to intellectual property; (d) intellectual property issues relevant to:

(i) small and medium-sized enterprises;

(ii) science, technology and innovation activities; and

(iii) the generation, transfer and dissemination of technology;

(e) policies involving the use of intellectual property for research, innovation and economic growth;

(f) implementation of multilateral intellectual property agreements, such as those concluded or administered under the auspices of WIPO; and

(g) technical assistance for developing countries.

Article 18.14: Patent Cooperation and Work Sharing

1. The Parties recognise the importance of improving the quality and efficiency of their respective patent registration systems as well as simplifying and streamlining the procedures and processes of their respective patent offices for the benefit of all users of the patent system and the public as a whole.

2. Further to paragraph 1, the Parties shall endeavour to cooperate among their respective patent offices to facilitate the sharing and use of search and examination work of other Parties. This may include:

(a) making search and examination results available to the patent offices of other Parties;9and

(b) exchanging information on quality assurance systems and quality standards relating to patent examination.

3. In order to reduce the complexity and cost of obtaining the grant of a patent, the Parties shall endeavour to cooperate to reduce differences in the procedures and processes of their respective patent offices.

4. The Parties recognise the importance of giving due consideration to ratifying or acceding to the Patent Law Treaty, done at Geneva, June 1, 2000; or in the alternative, adopting or maintaining procedural standards consistent with the objective of the Patent Law Treaty.

Article 18.15: Public Domain

1. The Parties recognise the importance of a rich and accessible public domain.

2. The Parties also acknowledge the importance of informational materials, such as publicly accessible databases of registered intellectual property rights that assist in the identification of subject matter that has fallen into the public domain.

Article 18.16: Cooperation in the Area of Traditional Knowledge

1. The Parties recognise the relevance of intellectual property systems and traditional knowledge associated with genetic resources to each other, when that traditional knowledge is related to those intellectual property systems.

2. The Parties shall endeavour to cooperate through their respective agencies responsible for intellectual property, or other relevant institutions, to enhance the understanding of issues connected with traditional knowledge associated with genetic resources, and genetic resources.

3. The Parties shall endeavour to pursue quality patent examination, which may include:

(a) that in determining prior art, relevant publicly available documented information related to traditional knowledge associated with genetic resources may be taken into account;

(b) an opportunity for third parties to cite, in writing, to the competent examining authority prior art disclosures that may have a bearing on patentability, including prior art disclosures related to traditional knowledge associated with genetic resources;

(c) if applicable and appropriate, the use of databases or digital libraries containing traditional knowledge associated with genetic resources; and

(d) cooperation in the training of patent examiners in the examination of patent applications related to traditional knowledge associated with genetic resources.

Article 18.17: Cooperation on Request

Cooperation activities and initiatives undertaken under this Chapter shall be subject to the availability of resources, and on request, and on terms and conditions mutually agreed upon between the Parties involved.

Section C: Trademarks

Article 18.18: Types of Signs Registrable as Trademarks

No Party shall require, as a condition of registration, that a sign be visually perceptible, nor shall a Party deny registration of a trademark only on the ground that the sign of which it is composed is a sound. Additionally, each Party shall make best efforts to register scent marks. A Party may require a concise and accurate description, or graphical representation, or both, as applicable, of the trademark.

Article 18.19: Collective and Certification Marks

Each Party shall provide that trademarks include collective marks and certification marks. A Party is not obligated to treat certification marks as a separate category in its law, provided that those marks are protected. Each Party shall also provide that signs that may serve as geographical indications are capable of protection under its trademark system.

Article 18.20: Use of Identical or Similar Signs

Each Party shall provide that the owner of a registered trademark has the exclusive right to prevent third parties that do not have the owner's consent from using in the course of trade identical or similar signs, including subsequent geographical indications, for goods or services that are related to those goods or services in respect of which the owner's trademark is registered, where such use would result in a likelihood of confusion. In the case of the use of an identical sign for identical goods or services, a likelihood of confusion shall be presumed.

Article 18.21: Exceptions

A Party may provide limited exceptions to the rights conferred by a trademark, such as fair use of descriptive terms, provided that those exceptions take account of the legitimate interest of the owner of the trademark and of third parties.

Article 18.22: Well-Known Trademarks

1. No Party shall require as a condition for determining that a trademark is well-known that the trademark has been registered in the Party or in another jurisdiction, included on a list of well-known trademarks, or given prior recognition as a well-known trademark.

2. Article 6bis of the Paris Convention shall apply, mutatis mutandis, to goods or services that are not identical or similar to those identified by a well known trademark, whether registered or not, provided that use of that trademark in relation to those goods or services would indicate a connection between those goods or services and the owner of the trademark, and provided that the interests of the owner of the trademark are likely to be damaged by such use.

3. Each Party recognises the importance of the Joint Recommendation Concerning Provisions on the Protection of Well-Known Marks as adopted by the Assembly of the Paris Union for the Protection of Industrial Property and the General Assembly of WIPO at the Thirty-Fourth Series of Meetings of the Assemblies of the Member States of WIPO September 20 to 29, 1999.

4. Each Party shall provide for appropriate measures to refuse the application or cancel the registration and prohibit the use of a trademark that is identical or similar to a well-known trademark14, for identical or similar goods or services, if the use of that trademark is likely to cause confusion with the prior well-known trademark. A Party may also provide such measures including in cases in which the subsequent trademark is likely to deceive.

Article 18.23: Procedural Aspects of Examination, Opposition and Cancellation

Each Party shall provide a system for the examination and registration o trademarks which includes among other things:

(a) communicating to the applicant in writing, which may be by electronic means, the reasons for any refusal to register a trademark;

(b) providing the applicant with an opportunity to respond to communications from the competent authorities, to contest any initial refusal, and to make a judicial appeal of any final refusal to register a trademark;

(d) requiring administrative decisions in opposition and cancellation proceedings to be reasoned and in writing, which may be provided by electronic means.

Article 18.24: Electronic Trademarks System

Each Party shall provide:

(a) a system for the electronic application for, and maintenance of, trademarks; and

(b) a publicly available electronic information system, including an online database, of trademark applications and of registered trademarks.

Article 18.25: Classification of Goods and Services

Each Party shall adopt or maintain a trademark classification system that is consistent with the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks, done at Nice, June 15, 1957, as revised and amended (Nice Classification). Each Party shall provide that:

(a) registrations and the publications of applications indicate the goods and services by their names, grouped according to the classes established by the Nice Classification; and

(b) goods or services may not be considered as being similar to each other on the ground that, in any registration or publication, they are classified in the same class of the Nice Classification. Conversely, each Party shall provide that goods or services may not be considered as being dissimilar from each other on the ground that, in any registration or publication, they are classified in different classes of the Nice Classification.

Article 18.26: Term of Protection for Trademarks

Each Party shall provide that initial registration and each renewal of registration of a trademark is for a term of no less than 10 years.

Article 18.27: Non-Recordal of a Licence

No Party shall require recordal of trademark licences:

(a) to establish the validity of the licence; or

(b) as a condition for use of a trademark by a licensee to be deemed to constitute use by the holder in a proceeding that relates to the acquisition, maintenance or enforcement of trademarks.

Article 18.28: Domain Names

1. In connection with each Party's system for the management of its country code top-level domain (ccTLD) domain names, the following shall be available:

(a) an appropriate procedure for the settlement of disputes, based on, or modelled along the same lines as, the principles established in the Uniform Domain-Name Dispute-Resolution Policy, as approved by the Internet Corporation for Assigned Names and Numbers (ICANN) or that:

(i) is designed to resolve disputes expeditiously and at low cost;

(ii) is fair and equitable;

(iii) is not overly burdensome; and

(iv) does not preclude resort to judicial proceedings; and

(b) online public access to a reliable and accurate database of contact information concerning domain name registrants, in accordance with each Party's law and, if applicable, relevant administrator policies regarding protection of privacy and personal data.

2. In connection with each Party's system for the management of ccTLD domain names, appropriate remedies17 shall be available at least in cases in which a person registers or holds, with a bad faith intent to profit, a domain name that is identical or confusingly similar to a trademark.

Section D: Country Names

Article 18.29: Country Names

Each Party shall provide the legal means for interested persons to prevent commercial use of the country name of a Party in relation to a good in a manner that misleads consumers as to the origin of that good.

Section E: Geographical Indications

Article 18.30: Recognition of Geographical Indications

The Parties recognise that geographical indications may be protected through a trademark or sui generis system or other legal means.

Article 18.31: Administrative Procedures for the Protection or Recognition of Geographical Indications

If a Party provides administrative procedures for the protection or recognition of geographical indications, whether through a trademark or a sui generis system, that Party shall with respect to applications for that protection or petitions for that recognition:

(a) accept those applications or petitions without requiring intercession by a Party on behalf of its nationals;

(b) process those applications or petitions without imposition of overly burdensome formalities;

(c) ensure that its laws and regulations governing the filing of those applications or petitions are readily available to the public and clearly set out the procedures for these actions;

(d) make available information sufficient to allow the general public to obtain guidance concerning the procedures for filing applications or petitions and the processing of those applications or petitions in general; and allow an applicant, a petitioner, or their representative to ascertain the status of specific applications and petitions;

(e) ensure that those applications or petitions are published for opposition and provide procedures for opposing geographical indications that are the subject of applications or petitions; and

(f) provide for cancellation of the protection or recognition afforded to a geographical indication.

Article 18.32: Grounds of Opposition and Cancellation

1. If a Party protects or recognises a geographical indication through the procedures referred to in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications), that Party shall provide procedures that allow interested persons to object to the protection or recognition of a geographical indication, and that allow for any such protection or recognition to be refused or otherwise not afforded, at least, on the following grounds:

(a) the geographical indication is likely to cause confusion with a trademark that is the subject of a pre-existing good faith pending application or registration in the territory of the Party;

(b) the geographical indication is likely to cause confusion with a pre existing trademark, the rights to which have been acquired in accordance with the Party's law; and

(c) the geographical indication is a term customary in common language as the common name for the relevant good in the territory of the Party.

2. If a Party has protected or recognised a geographical indication through the procedures referred to in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications), that Party shall provide procedures that allow for interested persons to seek the cancellation of a geographical indication, and that allow for the protection or recognition to be cancelled, at least, on the grounds listed in paragraph 1. A Party may provide that the grounds listed in paragraph 1 shall apply as of the time of filing the request for protection or recognition of a geographical indication in the territory of the Party.22

3. No Party shall preclude the possibility that the protection or recognition of a geographical indication may be cancelled, or otherwise cease, on the basis that the protected or recognised term has ceased meeting the conditions upon which the protection or recognition was originally granted in that Party.

4. If a Party has in place a sui generis system for protecting unregistered geographical indications by means of judicial procedures, that Party shall provide that its judicial authorities have the authority to deny the protection or recognition of a geographical indication if any of the circumstances identified in paragraph 1 has been established.23 That Party shall also provide a process that allows interested persons to commence a proceeding on the grounds identified in paragraph 1.

5. If a Party provides protection or recognition of a geographical indication through the procedures referred to in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications) to the translation or transliteration of that geographical indication, that Party shall make available procedures that are equivalent to, and grounds that are the same as, those referred to in paragraphs 1 and 2 with respect to that translation or transliteration.

Article 18.33: Guidelines for Determining Whether a Term is the Term Customary in the Common Language

With respect to the procedures in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications) and Article 18.32 (Grounds of Opposition and Cancellation), in determining whether a term is the term customary in common language as the common name for the relevant good in the territory of a Party, that Party's authorities shall have the authority to take into account how consumers understand the term in the territory of that Party. Factors relevant to such consumer understanding may include:

(a) whether the term is used to refer to the type of good in question, as indicated by competent sources such as dictionaries, newspapers and relevant websites; and

(b) how the good referenced by the term is marketed and used in trade in the territory of that Party.24

Article 18.34: Multi-Component Terms

With respect to the procedures in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications) and Article 18.32 (Grounds of Opposition and Cancellation), an individual component of a multi component term that is protected as a geographical indication in the territory of a Party shall not be protected in that Party if that individual component is a term customary in the common language as the common name for the associated good.

Article 18.35: Date of Protection of a Geographical Indication

If a Party grants protection or recognition to a geographical indication through the procedures referred to in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications), that protection or recognition shall commence no earlier than the filing date25 in the Party or the registration date in the Party, as applicable.

Article 18.36: International Agreements

1. If a Party protects or recognises a geographical indication pursuant to an international agreement, as of the applicable date under paragraph 6, involving a Party or a non-Party and that geographical indication is not protected through the procedures referred to in Article 18.31 (Administrative Procedures for the Protection or Recognition of Geographical Indications) 26 or Article 18.32.4 (Grounds of Opposition and Cancellation), that Party shall apply at least procedures and grounds that are equivalent to those in Article 18.31(e) (Administrative Procedures for the Protection or Recognition of Geographical Indications) and Article 18.32.1 (Grounds of Opposition and Cancellation), as well as:

(a) make available information sufficient to allow the general public to obtain guidance concerning the procedures for protecting or recognising the geographical indication and allow interested persons to ascertain the status of requests for protection or recognition;

(b) make available to the public, on the Internet, details regarding the terms that the Party is considering protecting or recognising through an international agreement involving a Party or a non Party, including specifying whether the protection or recognition is being considered for any translations or transliterations of those terms, and with respect to multi-component terms, specifying the components, if any, for which protection or recognition is being considered, or the components that are disclaimed;

(c) in respect of opposition procedures, provide a reasonable period of time for interested persons to oppose the protection or recognition of the terms referred to in subparagraph (b). That period shall provide a meaningful opportunity for interested persons to participate in an opposition process; and

(d) inform the other Parties of the opportunity to oppose, no later than the commencement of the opposition period.

2. In respect of international agreements referred to in paragraph 6 that permit the protection or recognition of a new geographical indication, a Party shall:

(a) apply paragraph 1(b);

(b) provide an opportunity for interested persons to comment regarding the protection or recognition of the new geographical indication for a reasonable period of time before such a term is protected or recognised; and

3. For the purposes of this Article, a Party shall not preclude the possibility that the protection or recognition of a geographical indication could cease.

4. For the purposes of this Article, a Party is not required to apply Article 18.32 (Grounds of Opposition and Cancellation), or obligations equivalent to Article 18.32, to geographical indications for wines and spirits or applications for those geographical indications.

5. Protection or recognition provided pursuant to paragraph 1 shall commence no earlier than the date on which the agreement enters into force or, if that Party grants that protection or recognition on a date after the entry into force of the agreement, on that later date.

6. No Party shall be required to apply this Article to geographical indications that have been specifically identified in, and that are protected or recognised pursuant to, an international agreement involving a Party or a non-Party, provided that the agreement:

(a) was concluded, or agreed in principle 29 , prior to the date of conclusion, or agreement in principle, of this Agreement;

(b) was ratified by a Party prior to the date of ratification of this Agreement by that Party; or

Section F: Patents and Undisclosed Test or Other Data

Subsection A: General Patents

Article 18.37: Patentable Subject Matter

1. Subject to paragraphs 3 and 4, each Party shall make patents available for any invention, whether a product or process, in all fields of technology, provided that the invention is new, involves an inventive step and is capable of industrial application.

2. Subject to paragraphs 3 and 4 and consistent with paragraph 1, each Party confirms that patents are available for inventions claimed as at least one of the following: new uses of a known product, new methods of using a known product, or new processes of using a known product. A Party may limit those new processes to those that do not claim the use of the product as such.

3. A Party may exclude from patentability inventions, the prevention within their territory of the commercial exploitation of which is necessary to protect ordre public or morality, including to protect human, animal or plant life or health or to avoid serious prejudice to nature or the environment, provided that such exclusion is not made merely because the exploitation is prohibited by its law. A Party may also exclude from patentability:

(a) diagnostic, therapeutic and surgical methods for the treatment of humans or animals;

(b) animals other than microorganisms, and essentially biological processes for the production of plants or animals, other than non biological and microbiological processes.

4. A Party may also exclude from patentability plants other than microorganisms. However, consistent with paragraph 1 and subject to paragraph 3, each Party confirms that patents are available at least for inventions that are derived from plants.

Article 18.38: Grace Period

Each Party shall disregard at least information contained in public disclosures used to determine if an invention is novel or has an inventive step, if the public disclosure:31, 32

(a) was made by the patent applicant or by a person that obtained the information directly or indirectly from the patent applicant; and

(b) occurred within 12 months prior to the date of the filing of the application in the territory of the Party.

Article 18.39: Patent Revocation

1. Each Party shall provide that a patent may be cancelled, revoked or nullified only on grounds that would have justified a refusal to grant the patent. A Party may also provide that fraud, misrepresentation or inequitable conduct may be the basis for cancelling, revoking or nullifying a patent or holding a patent unenforceable.

2. Notwithstanding paragraph 1, a Party may provide that a patent may be revoked, provided it is done in a manner consistent with Article 5A of the Paris Convention and the TRIPS Agreement.

Article 18.40: Exceptions

A Party may provide limited exceptions to the exclusive rights conferred by a patent, provided that such exceptions do not unreasonably conflict with a normal exploitation of the patent and do not unreasonably prejudice the legitimate interests of the patent owner, taking account of the legitimate interests of third parties.

Article 18.41: Other Use Without Authorisation of the Right Holder

The Parties understand that nothing in this Chapter limits a Party's rights and obligations under Article 31 of the TRIPS Agreement, any waiver or any amendment to that Article that the Parties accept.

Article 18.42: Patent Filing

Each Party shall provide that if an invention is made independently by more than one inventor, and separate applications claiming that invention are filed with, or for, the relevant authority of the Party, that Party shall grant the patent on the application that is patentable and that has the earliest filing date or, if applicable, priority date, unless that application has, prior to publication, been withdrawn, abandoned or refused.

Article 18.43: Amendments, Corrections and Observations

Each Party shall provide a patent applicant with at least one opportunity to make amendments, corrections and observations in connection with its application.

Article 18.44: Publication of Patent Applications

1. Recognising the benefits of transparency in the patent system, each Party shall endeavour to publish unpublished pending patent applications promptly after the expiration of 18 months from the filing date or, if priority is claimed, from the earliest priority date.

2. If a pending application is not published promptly in accordance with paragraph 1, a Party shall publish that application or the corresponding patent, as soon as practicable.

3. Each Party shall provide that an applicant may request the early publication of an application prior to the expiration of the period referred to in paragraph 1.

Article 18.45: Information Relating to Published Patent Applications and Granted Patents

For published patent applications and granted patents, and in accordance with the Party's requirements for prosecution of such applications and patents, each Party shall make available to the public at least the following information, to the extent that such information is in the possession of the competent authorities and is generated on, or after, the date of the entry into force of this Agreement for that Party:

(a) search and examination results, including details of, or information related to, relevant prior art searches;

(b) as appropriate, non-confidential communications from applicants; and

Article 18.46: Patent Term Adjustment for Unreasonable Granting Authority Delays

1. Each Party shall make best efforts to process patent applications in an efficient and timely manner, with a view to avoiding unreasonable or unnecessary delays.

2. A Party may provide procedures for a patent applicant to request to expedite the examination of its patent application.

3. If there are unreasonable delays in a Party's issuance of patents, that Party shall provide the means to, and at the request of the patent owner shall, adjust the term of the patent to compensate for such delays.

4. For the purposes of this Article, an unreasonable delay at least shall include a delay in the issuance of a patent of more than five years from the date of filing of the application in the territory of the Party, or three years after a request for examination of the application has been made, whichever is later. A Party may exclude, from the determination of such delays, periods of time that do not occur during the processing37 of, or the examination of, the patent application by the granting authority; periods of time that are not directly attributable38 to the granting authority; as well as periods of time that are attributable to the patent applicant.39

Subsection B: Measures Relating to Agricultural Chemical Products

Article 18.47: Protection of Undisclosed Test or Other Data for Agricultural Chemical Products

1. If a Party requires, as a condition for granting marketing approval for a new agricultural chemical product, the submission of undisclosed test or other data concerning the safety and efficacy of the product,41 that Party shall not permit third persons, without the consent of the person that previously submitted such information, to market the same or a similar 42 product on the basis of that information or the marketing approval granted to the person that submitted such test or other data for at least 10 years from the date of marketing approval of the new agricultural chemical product in the territory of the Party.

2. If a Party permits, as a condition of granting marketing approval for a new agricultural chemical product, the submission of evidence of a prior marketing approval of the product in another territory, that Party shall not permit third persons, without the consent of the person that previously submitted undisclosed test or other data concerning the safety and efficacy of the product in support of that prior marketing approval, to market the same or a similar product based on that undisclosed test or other data, or other evidence of the prior marketing approval in the other territory, for at least 10 years from the date of marketing approval of the new agricultural chemical product in the territory of the Party.

3. For the purposes of this Article, a new agricultural chemical product is one that contains44 a chemical entity that has not been previously approved in the territory of the Party for use in an agricultural chemical product.

Subsection C: Measures Relating to Pharmaceutical Products

Article 18.48: Patent Term Adjustment for Unreasonable Curtailment

1. Each Party shall make best efforts to process applications for marketing approval of pharmaceutical products in an efficient and timely manner, with a view to avoiding unreasonable or unnecessary delays.

2. With respect to a pharmaceutical product45 that is subject to a patent, each Party shall make available an adjustment46 of the patent term to compensate the patent owner for unreasonable curtailment of the effective patent term as a result of the marketing approval process.47, 48

3. For greater certainty, in implementing the obligations of this Article, each Party may provide for conditions and limitations, provided that the Party continues to give effect to this Article.

4. With the objective of avoiding unreasonable curtailment of the effective patent term, a Party may adopt or maintain procedures that expedite the processing of marketing approval applications.

Article 18.49: Regulatory Review Exception

Without prejudice to the scope of, and consistent with, Article 18.40 (Exceptions), each Party shall adopt or maintain a regulatory review exception49 for pharmaceutical products.

Article 18.50: Protection of Undisclosed Test or Other Data50

1. (a) If a Party requires, as a condition for granting marketing approval for a new pharmaceutical product, the submission of undisclosed test or other data concerning the safety and efficacy of the product, that Party shall not permit third persons, without the consent of the person that previously submitted such information, to market the same or a similar52 product on the basis of:

(i) that information; or

(ii) the marketing approval granted to the person that submitted such information,

for at least five years53 from the date of marketing approval of the new pharmaceutical product in the territory of the Party.

(b) If a Party permits, as a condition of granting marketing approval for a new pharmaceutical product, the submission of evidence of prior marketing approval of the product in another territory, that Party shall not permit third persons, without the consent of a person that previously submitted such information concerning the safety and efficacy of the product, to market a same or a similar product based on evidence relating to prior marketing approval in the other territory for at least five years from the date of marketing approval of the new pharmaceutical product in the territory of that Party.54

2. Each Party shall:

(a) apply paragraph 1, mutatis mutandis, for a period of at least three years with respect to new clinical information submitted as required in support of a marketing approval of a previously approved pharmaceutical product covering a new indication, new formulation or new method of administration; or, alternatively,

(b) apply paragraph 1, mutatis mutandis, for a period of at least five years to new pharmaceutical products that contain a chemical entity that has not been previously approved in that Party.

3. Notwithstanding paragraphs 1 and 2 and Article 18.51 (Biologics), a Party may take measures to protect public health in accordance with:

(a) the Declaration on TRIPS and Public Health;

(b) any waiver of any provision of the TRIPS Agreement granted by WTO Members in accordance with the WTO Agreement to implement the Declaration on TRIPS and Public Health and that is in force between the Parties; or

(c) any amendment of the TRIPS Agreement to implement the Declaration on TRIPS and Public Health that enters into force with respect to the Parties.

Article 18.51: Biologics58

1. With regard to protecting new biologics, a Party shall either:

(a) with respect to the first marketing approval in a Party of a new pharmaceutical product that is or contains a biologic,59,60 provide effective market protection through the implementation of Article 18.50.1 (Protection of Undisclosed Test or Other Data) and Article 18.50.3, mutatis mutandis, for a period of at least eight years from the date of first marketing approval of that product in that Party; or, alternatively,

(b) with respect to the first marketing approval in a Party of a new pharmaceutical product that is or contains a biologic, provide effective market protection:

(i) through the implementation of Article 18.50.1 (Protection of Undisclosed Test or Other Data) and Article 18.50.3, mutatis mutandis, for a period of at least five years from the date of first marketing approval of that product in that Party,

(ii) through other measures, and

(iii) recognising that market circumstances also contribute to effective market protection to deliver a comparable outcome in the market.

2. For the purposes of this Section, each Party shall apply this Article to, at a minimum, a product that is, or, alternatively, contains, a protein produced using biotechnology processes, for use in human beings for the prevention, treatment, or cure of a disease or condition.

3. Recognising that international and domestic regulation of new pharmaceutical products that are or contain a biologic is in a formative stage and that market circumstances may evolve over time, the Parties shall consult after 10 years from the date of entry into force of this Agreement, or as otherwise decided by the Commission, to review the period of exclusivity provided in paragraph 1 and the scope of application provided in paragraph 2, with a view to providing effective incentives for the development of new pharmaceutical products that are or contain a biologic, as well as with a view to facilitating the timely availability of follow-on biosimilars, and to ensuring that the scope of application remains consistent with international developments regarding approval of additional categories of new pharmaceutical products that are or contain a biologic.

Article 18.52: Definition of New Pharmaceutical Product

For the purposes of Article 18.50.1 (Protection of Undisclosed Test or Other Data), a new pharmaceutical product means a pharmaceutical product that does not contain61 a chemical entity that has been previously approved in that Party.

Article 18.53: Measures Relating to the Marketing of Certain Pharmaceutical Products

1. If a Party permits, as a condition of approving the marketing of a pharmaceutical product, persons, other than the person originally submitting the safety and efficacy information, to rely on evidence or information concerning the safety and efficacy of a product that was previously approved, such as evidence of prior marketing approval by the Party or in another territory, that Party shall provide:

(a) a system to provide notice to a patent holder62 or to allow for a patent holder to be notified prior to the marketing of such a pharmaceutical product, that such other person is seeking to market that product during the term of an applicable patent claiming the approved product or its approved method of use;

(b) adequate time and opportunity for such a patent holder to seek, prior to the marketing 63 of an allegedly infringing product, available remedies in subparagraph (c); and

(c) procedures, such as judicial or administrative proceedings, and expeditious remedies, such as preliminary injunctions or equivalent effective provisional measures, for the timely resolution of disputes concerning the validity or infringement of an applicable patent claiming an approved pharmaceutical product or its approved method of use.

2. As an alternative to paragraph 1, a Party shall instead adopt or maintain a system other than judicial proceedings that precludes, based upon patent-related information submitted to the marketing approval authority by a patent holder or the applicant for marketing approval, or based on direct coordination between the marketing approval authority and the patent office, the issuance of marketing approval to any third person seeking to market a pharmaceutical product subject to a patent claiming that product, unless by consent or acquiescence of the patent holder.

Article 18.54: Alteration of Period of Protection

Subject to Article 18.50.3 (Protection of Undisclosed Test or Other Data), if a product is subject to a system of marketing approval in the territory of a Party pursuant to Article 18.47 (Protection of Undisclosed Test or Other Data for Agricultural Chemical Products), Article 18.50 or Article 18.51 (Biologics) and is also covered by a patent in the territory of that Party, the Party shall not alter the period of protection that it provides pursuant to Article 18.47, Article 18.50 or Article 18.51 in the event that the patent protection terminates on a date earlier than the end of the period of protection specified in Article 18.47, Article 18.50 or Article 18.51.

Section G: Industrial Designs

Article 18.55: Protection

1. Each Party shall ensure adequate and effective protection of industrial designs and also confirms that protection for industrial designs is available for designs:

(a) embodied in a part of an article; or, alternatively,

(b) having a particular regard, where appropriate, to a part of an article in the context of the article as a whole.

2. This Article is subject to Articles 25 and 26 of the TRIPS Agreement.

Article 18.56: Improving Industrial Design Systems

The Parties recognise the importance of improving the quality and efficiency of their respective industrial design registration systems, as well as facilitating the process of cross-border acquisition of rights in their respective industrial design systems, including giving due consideration to ratifying or acceding to the Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs, done at Geneva, July 2, 1999.

Section H: Copyright and Related Rights

Article 18.57: Definitions

For the purposes of Article 18.58 (Right of Reproduction) and Article 18.60 (Right of Distribution) through Article 18.70 (Collective Management), the following definitions apply with respect to performers and producers of phonograms:

broadcasting means the transmission by wireless means for public reception of sounds or of images and sounds or of the representations thereof; such transmission by satellite is also "broadcasting"; transmission of encrypted signals is "broadcasting" if the means for decrypting are provided to the public by the broadcasting organisation or with its consent;

communication to the public of a performance or a phonogram means the transmission to the public by any medium, other than by broadcasting, of sounds of a performance or the sounds or the representations of sounds fixed in a phonogram;

fixation means the embodiment of sounds, or of the representations thereof, from which they can be perceived, reproduced, or communicated through a device;

performers means actors, singers, musicians, dancers, and other persons who act, sing, deliver, declaim, play in, interpret, or otherwise perform literary or artistic works or expressions of folklore;

phonogram means the fixation of the sounds of a performance or of other sounds, or of a representation of sounds, other than in the form of a fixation incorporated in a cinematographic or other audio-visual work;

producer of a phonogram means a person that takes the initiative and has the responsibility for the first fixation of the sounds of a performance or other sounds, or the representations of sounds; and

publication of a performance or phonogram means the offering of copies of the performance or the phonogram to the public, with the consent of the right holder, and provided that copies are offered to the public in reasonable quantity.

Article 18.58: Right of Reproduction

Each Party shall provide 64 to authors, performers and producers of phonograms65 the exclusive right to authorise or prohibit all reproduction of their works, performances or phonograms in any manner or form, including in electronic form.

Article 18.59: Right of Communication to the Public

Without prejudice to Article 11(1)(ii), Article 11bis(1)(i) and (ii), Article 11ter(1)(ii), Article 14(1)(ii), and Article 14bis(1) of the Berne Convention, each Party shall provide to authors the exclusive right to authorise or prohibit the communication to the public of their works, by wire or wireless means, including the making available to the public of their works in such a way that members of the public may access these works from a place and at a time individually chosen by them.

Article 18.60: Right of Distribution

Each Party shall provide to authors, performers and producers of phonograms the exclusive right to authorise or prohibit the making available to the public of the original and copies of their works, performances and phonograms through sale or other transfer of ownership.

Article 18.61: No Hierarchy

Each Party shall provide that in cases in which authorisation is needed from both the author of a work embodied in a phonogram and a performer or producer that owns rights in the phonogram:

(a) the need for the authorisation of the author does not cease to exist because the authorisation of the performer or producer is also required; and

(b) the need for the authorisation of the performer or producer does not cease to exist because the authorisation of the author is also required.

Article 18.62: Related Rights

1. Each Party shall accord the rights provided for in this Chapter with respect to performers and producers of phonograms: to the performers and producers of phonograms that are nationals of another Party; and to performances or phonograms first published or first fixed in the territory of another Party. A performance or phonogram shall be considered first published in the territory of a Party if it is published in the territory of that Party within 30 days of its original publication.

2. Each Party shall provide to performers the exclusive right to authorise or prohibit:

(a) the broadcasting and communication to the public of their unfixed performances, unless the performance is already a broadcast performance; and

(b) the fixation of their unfixed performances.

3. (a) Each Party shall provide to performers and producers of phonograms the exclusive right to authorise or prohibit the broadcasting or any communication to the public of their performances or phonograms, by wire or wireless means, and the making available to the public of those performances or phonograms in such a way that members of the public may access them from a place and at a time individually chosen by them.

(b) Notwithstanding subparagraph (a) and Article 18.65 (Limitations and Exceptions), the application of the right referred to in subparagraph (a) to analog transmissions and non-interactive free over-the-air broadcasts, and exceptions or limitations to this right for those activities, is a matter of each Party's law.73

Article 18.63: Term of Protection for Copyright and Related Rights

Each Party shall provide that in cases in which the term of protection of a work, performance or phonogram is to be calculated:74

(a) on the basis of the life of a natural person, the term shall be not less than the life of the author and 70 years after the author's death; and

(b) on a basis other than the life of a natural person, the term shall be:

(i) not less than 70 years from the end of the calendar year of the first authorised publication76 of the work, performance or phonogram; or

(ii) failing such authorised publication within 25 years from the creation of the work, performance or phonogram, not less than 70 years from the end of the calendar year of the creation of the work, performance or phonogram.

Article 18.64: Application of Article 18 of the Berne Convention and Article 14.6 of the TRIPS Agreement

Each Party shall apply Article 18 of the Berne Convention and Article 14.6 of the TRIPS Agreement, mutatis mutandis, to works, performances and phonograms, and the rights in and protections afforded to that subject matter as required by this Section.

Article 18.65: Limitations and Exceptions

1. With respect to this Section, each Party shall confine limitations or exceptions to exclusive rights to certain special cases that do not conflict with a normal exploitation of the work, performance or phonogram, and do not unreasonably prejudice the legitimate interests of the right holder.

2. This Article does not reduce or extend the scope of applicability of the limitations and exceptions permitted by the TRIPS Agreement, the Berne Convention, the WCT or the WPPT.

Article 18.66: Balance in Copyright and Related Rights Systems

Each Party shall endeavour to achieve an appropriate balance in its copyright and related rights system, among other things by means of limitations or exceptions that are consistent with Article 18.65 (Limitations and Exceptions), including those for the digital environment, giving due consideration to legitimate purposes such as, but not limited to: criticism; comment; news reporting; teaching, scholarship, research, and other similar purposes; and facilitating access to published works for persons who are blind, visually impaired or otherwise print disabled.

Article 18.67: Contractual Transfers

Each Party shall provide that for copyright and related rights, any person acquiring or holding any economic right in a work, performance or phonogram:

(a) may freely and separately transfer that right by contract; and

(b) by virtue of contract, including contracts of employment underlying the creation of works, performances or phonograms, shall be able to exercise that right in that person's own name and enjoy fully the benefits derived from that right.

Article 18.68: Technological Protection Measures (TPMs)

1. In order to provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that authors, performers, and producers of phonograms use in connection with the exercise of their rights and that restrict unauthorised acts in respect of their works, performances, and phonograms, each Party shall provide that any person that:

(a) knowingly, or having reasonable grounds to know, circumvents without authority any effective technological measure that controls access to a protected work, performance, or phonogram; or

(b) manufactures, imports, distributes,85 offers for sale or rental to the public, or otherwise provides devices, products, or components, or offers to the public or provides services, that:

(i) are promoted, advertised, or otherwise marketed by that person 86 for the purpose of circumventing any effective technological measure;

(ii) have only a limited commercially significant purpose or use other than to circumvent any effective technological measure; or

(iii) are primarily designed, produced, or performed for the purpose of circumventing any effective technological measure, is liable and subject to the remedies provided for in Article 18.74 (Civil and Administrative Procedures and Remedies).

Each Party shall provide for criminal procedures and penalties to be applied if any person is found to have engaged wilfully and for the purposes of commercial advantage or financial gain89 in any of the above activities. A Party may provide that the criminal procedures and penalties do not apply to a non-profit library, museum, archive, educational institution, or public non commercial broadcasting entity. A Party may also provide that the remedies provided for in Article 18.74 (Civil and Administrative Procedures and Remedies) do not apply to any of the same entities provided that the above activities are carried out in good faith without knowledge that the conduct is prohibited.

2. In implementing paragraph 1, no Party shall be obligated to require that the design of, or the design and selection of parts and components for, a consumer electronics, telecommunications, or computing product provide for a response to any particular technological measure, provided that the product does not otherwise violate a measure implementing paragraph 1.

3. Each Party shall provide that a violation of a measure implementing this Article is independent of any infringement that might occur under the Party's law on copyright and related rights.

4. With regard to measures implementing paragraph 1:

(a) a Party may provide certain limitations and exceptions to the measures implementing paragraph 1(a) or paragraph 1(b) in order to enable non-infringing uses if there is an actual or likely adverse impact of those measures on those non-infringing uses, as determined through a legislative, regulatory, or administrative process in accordance with the Party's law, giving due consideration to evidence when presented in that process, including with respect to whether appropriate and effective measures have been taken by rights holders to enable the beneficiaries to enjoy the limitations and exceptions to copyright and related rights under that Party's law;

(b) any limitations or exceptions to a measure that implements paragraph 1(b) shall be permitted only to enable the legitimate use of a limitation or exception permissible under this Article by its intended beneficiaries and does not authorise the making available of devices, products, components, or services beyond those intended beneficiaries; and

(c) a Party shall not, by providing limitations and exceptions under paragraph 4(a) and paragraph 4(b), undermine the adequacy of that Party's legal system for the protection of effective technological measures, or the effectiveness of legal remedies against the circumvention of such measures, that authors, performers, or producers of phonograms use in connection with the exercise of their rights, or that restrict unauthorised acts in respect of their works, performances or phonograms, as provided for in this Chapter.

5. Effective technological measure means any effective technology, device, or component that, in the normal course of its operation, controls access to a protected work, performance, or phonogram, or protects copyright or related rights related to a work, performance or phonogram.

Article 18.69: Rights Management Information (RMI)96

1. In order to provide adequate and effective legal remedies to protect RMI:

(a) each Party shall provide that any person that, without authority, and knowing, or having reasonable grounds to know, that it would induce, enable, facilitate or conceal an infringement of the copyright or related right of authors, performers or producers of phonograms:

(i) knowingly removes or alters any RMI;

(ii) knowingly distributes or imports for distribution RMI knowing that the RMI has been altered without authority; or

(iii) knowingly distributes, imports for distribution, broadcasts, communicates or makes available to the public copies of works, performances or phonograms, knowing that RMI has been removed or altered without authority, is liable and subject to the remedies set out in Article 18.74 (Civil and Administrative Procedures and Remedies).

Each Party shall provide for criminal procedures and penalties to be applied if any person is found to have engaged wilfully and for purposes of commercial advantage or financial gain in any of the above activities.

A Party may provide that the criminal procedures and penalties do not apply to a non-profit library, museum, archive, educational institution or public non commercial broadcasting entity.

2. For greater certainty, nothing prevents a Party from excluding from a measure that implements paragraph 1 a lawfully authorised activity that is carried out for the purpose of law enforcement, essential security interests or other related governmental purposes, such as the performance of a statutory function.

3. For greater certainty, nothing in this Article shall obligate a Party to require a right holder in a work, performance or phonogram to attach RMI to copies of the work, performance or phonogram, or to cause RMI to appear in connection with a communication of the work, performance or phonogram to the public.

4. RMI means:

(a) information that identifies a work, performance or phonogram, the author of the work, the performer of the performance or the producer of the phonogram; or the owner of any right in the work, performance or phonogram;

(b) information about the terms and conditions of the use of the work, performance or phonogram; or

(c) any numbers or codes that represent the information referred to in subparagraphs (a) and (b), if any of these items is attached to a copy of the work, performance or phonogram or appears in connection with the communication or making available of a work, performance or phonogram to the public.

Article 18.70: Collective Management

The Parties recognise the important role of collective management societies for copyright and related rights in collecting and distributing royalties100 based on practices that are fair, efficient, transparent and accountable, which may include appropriate record keeping and reporting mechanisms.

Section I: Enforcement

Article 18.71: General Obligations

1. Each Party shall ensure that enforcement procedures as specified in this Section are available under its law so as to permit effective action against any act of infringement of intellectual property rights covered by this Chapter, including expeditious remedies to prevent infringements and remedies that constitute a deterrent to future infringements. These procedures shall be applied in such a manner as to avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse.

2. Each Party confirms that the enforcement procedures set forth in Article 18.74 (Civil and Administrative Procedures and Remedies), Article 18.75 (Provisional Measures) and Article 18.77 (Criminal Procedures and Penalties) shall be available to the same extent with respect to acts of trademark infringement, as well as copyright or related rights infringement, in the digital environment.

3. Each Party shall ensure that its procedures concerning the enforcement of intellectual property rights are fair and equitable. These procedures shall not be unnecessarily complicated or costly, or entail unreasonable time-limits or unwarranted delays.

4. This Section does not create any obligation:

(a) to put in place a judicial system for the enforcement of intellectual property rights distinct from that for the enforcement of law in general, nor does it affect the capacity of each Party to enforce its law in general; or

(b) with respect to the distribution of resources as between the enforcement of intellectual property rights and the enforcement of law in general.

5. In implementing the provisions of this Section in its intellectual property system, each Party shall take into account the need for proportionality between the seriousness of the infringement of the intellectual property right and the applicable remedies and penalties, as well as the interests of third parties.

Article 18.72: Presumptions

1. In civil, criminal and, if applicable, administrative proceedings involving copyright or related rights, each Party shall provide for a presumption that, in the absence of proof to the contrary:

(a) the person whose name is indicated in the usual manner as the author, performer or producer of the work, performance or phonogram, or if applicable the publisher, is the designated right holder in that work, performance or phonogram; and

(b) the copyright or related right subsists in such subject matter.

2. In connection with the commencement of a civil, administrative or criminal enforcement proceeding involving a registered trademark that has been substantively examined by its competent authority, each Party shall provide that the trademark be considered prima facie valid.

3. In connection with the commencement of a civil or administrative enforcement proceeding involving a patent that has been substantively examined and granted by the competent authority of a Party, that Party shall provide that each claim in the patent be considered prima facie to satisfy the applicable criteria of patentability in the territory of the Party.

Article 18.73: Enforcement Practices with Respect to Intellectual Property Rights

1. Each Party shall provide that final judicial decisions and administrative rulings of general application pertaining to the enforcement of intellectual property rights:

(a) preferably are in writing and state any relevant findings of fact and the reasoning or the legal basis on which the decisions and rulings are based; and

(b) are published or, if publication is not practicable, otherwise made available to the public in a national language in such a manner as to enable interested persons and Parties to become acquainted with them.

2. Each Party recognises the importance of collecting and analysing statistical data and other relevant information concerning infringements of intellectual property rights as well as collecting information on best practices to prevent and combat infringements.

3. Each Party shall publish or otherwise make available to the public information on its efforts to provide effective enforcement of intellectual property rights in its civil, administrative and criminal systems, such as statistical information that the Party may collect for such purposes.

Article 18.74: Civil and Administrative Procedures and Remedies

1. Each Party shall make available to right holders civil judicial procedures concerning the enforcement of any intellectual property right covered in this Chapter.

2. Each Party shall provide that its judicial authorities have the authority to order injunctive relief that conforms to Article 44 of the TRIPS Agreement, including to prevent goods that involve the infringement of an intellectual property right under the law of the Party providing that relief from entering into the channels of commerce.

3. Each Party shall provide that, in civil judicial proceedings, its judicial authorities have the authority at least to order the infringer to pay the right holder damages adequate to compensate for the injury the right holder has suffered because of an infringement of that person's intellectual property right by an infringer who knowingly, or with reasonable grounds to know, engaged in infringing activity.

4. In determining the amount of damages under paragraph 3, each Party's judicial authorities shall have the authority to consider, among other things, any legitimate measure of value the right holder submits, which may include lost profits, the value of the infringed goods or services measured by the market price, or the suggested retail price.

5. At least in cases of copyright or related rights infringement and trademark counterfeiting, each Party shall provide that, in civil judicial proceedings, its judicial authorities have the authority to order the infringer, at least in cases described in paragraph 3, to pay the right holder the infringer's profits that are attributable to the infringement.111

6. In civil judicial proceedings with respect to the infringement of copyright or related rights protecting works, phonograms or performances, each Party shall establish or maintain a system that provides for one or more of the following:

(a) pre-established damages, which shall be available on the election of the right holder; or

(b) additional damages.

7. In civil judicial proceedings with respect to trademark counterfeiting, each Party shall also establish or maintain a system that provides for one or more of the following:

(a) pre-established damages, which shall be available on the election of the right holder; or

(b) additional damages.

8. Pre-established damages under paragraphs 6 and 7 shall be set out in an amount that would be sufficient to compensate the right holder for the harm caused by the infringement, and with a view to deterring future infringements.

9. In awarding additional damages under paragraphs 6 and 7, judicial authorities shall have the authority to award such additional damages as they consider appropriate, having regard to all relevant matters, including the nature of the infringing conduct and the need to deter similar infringements in the future.

10. Each Party shall provide that its judicial authorities, if appropriate, have the authority to order, at the conclusion of civil judicial proceedings concerning infringement of at least copyright or related rights, patents and trademarks, that the prevailing party be awarded payment by the losing party of court costs or fees and appropriate attorney's fees, or any other expenses as provided for under the Party's law.

11. If a Party's judicial or other authorities appoint a technical or other expert in a civil proceeding concerning the enforcement of an intellectual property right and require that the parties to the proceeding pay the costs of that expert, that Party should seek to ensure that those costs are reasonable and related appropriately, among other things, to the quantity and nature of work to be performed and do not unreasonably deter recourse to such proceedings.

12. Each Party shall provide that in civil judicial proceedings:

(a) at least with respect to pirated copyright goods and counterfeit trademark goods, its judicial authorities have the authority, at the right holder's request, to order that the infringing goods be destroyed, except in exceptional circumstances, without compensation of any sort;

(b) its judicial authorities have the authority to order that materials and implements that have been used in the manufacture or creation of the infringing goods be, without undue delay and without compensation of any sort, destroyed or disposed of outside the channels of commerce in such a manner as to minimise the risk of further infringement; and

(c) in regard to counterfeit trademark goods, the simple removal of the trademark unlawfully affixed is not sufficient, other than in exceptional circumstances, to permit the release of goods into the channels of commerce.

13. Without prejudice to its law governing privilege, the protection of confidentiality of information sources or the processing of personal data, each Party shall provide that, in civil judicial proceedings concerning the enforcement of an intellectual property right, its judicial authorities have the authority, on a justified request of the right holder, to order the infringer or, in the alternative, the alleged infringer to provide to the right holder or to the judicial authorities, at least for the purpose of collecting evidence, relevant information as provided for in its applicable laws and regulations that the infringer or alleged infringer possesses or controls. The information may include information regarding any person involved in any aspect of the infringement or alleged infringement and the means of production or the channels of distribution of the infringing or allegedly infringing goods or services, including the identification of third persons alleged to be involved in the production and distribution of the goods or services and of their channels of distribution.

14. Each Party shall provide that in relation to a civil judicial proceeding concerning the enforcement of an intellectual property right, its judicial or other authorities have the authority to impose sanctions on a party, counsel, experts or other persons subject to the court's jurisdiction for violation of judicial orders concerning the protection of confidential information produced or exchanged in that proceeding.

15. Each Party shall ensure that its judicial authorities have the authority to order a party at whose request measures were taken and that has abused enforcement procedures with regard to intellectual property rights, including trademarks, geographical indications, patents, copyright and related rights and industrial designs, to provide to a party wrongfully enjoined or restrained adequate compensation for the injury suffered because of that abuse. The judicial authorities shall also have the authority to order the applicant to pay the defendant expenses, which may include appropriate attorney's fees.

16. To the extent that any civil remedy can be ordered as a result of administrative procedures on the merits of a case, each Party shall provide that

those procedures conform to principles equivalent in substance to those set out in this Article.

17. In civil judicial proceedings concerning the acts described in Article 18.68 (TPMs) and Article 18.69 (RMI):

(a) each Party shall provide that its judicial authorities have the authority at least to:

(i) impose provisional measures, including seizure or other taking into custody of devices and products suspected of being involved in the prohibited activity;

(ii) order the type of damages available for copyright infringement, as provided under its law in accordance with this Article;

(iii) order court costs, fees or expenses as provided for under paragraph 10; and

(iv) order the destruction of devices and products found to be involved in the prohibited activity; and

(b) a Party may provide that damages shall not be available against a non-profit library, archive, educational institution, museum or public non-commercial broadcasting entity, if it sustains the burden of proving that it was not aware or had no reason to believe that its acts constituted a prohibited activity.

Article 18.75: Provisional Measures

1. Each Party's authorities shall act on a request for relief in respect of an intellectual property right inaudita altera parte expeditiously in accordance with that Party's judicial rules.

2. Each Party shall provide that its judicial authorities have the authority to require the applicant for a provisional measure in respect of an intellectual property right to provide any reasonably available evidence in order to satisfy the judicial authority, with a sufficient degree of certainty, that the applicant's right is being infringed or that the infringement is imminent, and to order the applicant to provide security or equivalent assurance set at a level sufficient to protect the defendant and to prevent abuse. Such security or equivalent assurance shall not unreasonably deter recourse to those procedures.

3. In civil judicial proceedings concerning copyright or related rights infringement and trademark counterfeiting, each Party shall provide that its judicial authorities have the authority to order the seizure or other taking into custody of suspected infringing goods, materials and implements relevant to the infringement, and, at least for trademark counterfeiting, documentary evidence relevant to the infringement.

Article 18.76: Special Requirements related to Border Measures

1. Each Party shall provide for applications to suspend the release of, or to detain, any suspected counterfeit or confusingly similar trademark or pirated copyright goods that are imported into the territory of the Party.

2. Each Party shall provide that any right holder initiating procedures for its competent authorities to suspend release of suspected counterfeit or confusingly similar trademark or pirated copyright goods into free circulation is required to provide adequate evidence to satisfy the competent authorities that, under the law of the Party providing the procedures, there is prima facie an infringement of the right holder's intellectual property right and to supply sufficient information that may reasonably be expected to be within the right holder's knowledge to make the suspect goods reasonably recognisable by its competent authorities. The requirement to provide that information shall not unreasonably deter recourse to these procedures.

3. Each Party shall provide that its competent authorities have the authority to require a right holder initiating procedures to suspend the release of suspected counterfeit or confusingly similar trademark or pirated copyright goods, to provide a reasonable security or equivalent assurance sufficient to protect the defendant and the competent authorities and to prevent abuse. Each Party shall provide that such security or equivalent assurance does not unreasonably deter recourse to these procedures. A Party may provide that the security may be in the form of a bond conditioned to hold the defendant harmless from any loss or damage resulting from any suspension of the release of goods in the event the competent authorities determine that the article is not an infringing good.

4. Without prejudice to a Party's law pertaining to privacy or the confidentiality of information:

(a) if a Party's competent authorities have detained or suspended the release of goods that are suspected of being counterfeit trademark or pirated copyright goods, that Party may provide that its competent authorities have the authority to inform the right holder without undue delay of the names and addresses of the consignor, exporter, consignee or importer; a description of the goods; the quantity of the goods; and, if known, the country of origin of the goods; or

(b) if a Party does not provide its competent authority with the authority referred to in subparagraph (a) when suspect goods are detained or suspended from release, it shall provide, at least in cases of imported goods, its competent authorities with the authority to provide the information specified in subparagraph (a) to the right holder normally within 30 working days of the seizure or determination that the goods are counterfeit trademark goods or pirated copyright goods.

5. Each Party shall provide that its competent authorities may initiate border measures ex officio with respect to goods under customs control that are:

(a) imported;

(b) destined for export; or

6. Each Party shall adopt or maintain a procedure by which its competent authorities may determine within a reasonable period of time after the initiation of the procedures described in paragraph 1, paragraph 5(a), paragraph 5(b) and, if applicable, paragraph 5(c), whether the suspect goods infringe an intellectual property right. If a Party provides administrative procedures for the determination of an infringement, it may also provide its authorities with the authority to impose administrative penalties or sanctions, which may include fines or the seizure of the infringing goods following a determination that the goods are infringing.

7. Each Party shall provide that its competent authorities have the authority to order the destruction of goods following a determination that the goods are infringing. In cases in which the goods are not destroyed, each Party shall ensure that, except in exceptional circumstances, the goods are disposed of outside the channels of commerce in such a manner as to avoid any harm to the right holder. In regard to counterfeit trademark goods, the simple removal of the trademark unlawfully affixed shall not be sufficient, other than in exceptional cases, to permit the release of the goods into the channels of commerce.

8. If a Party establishes or assesses, in connection with the procedures described in this Article, an application fee, storage fee or destruction fee, that fee shall not be set at an amount that unreasonably deters recourse to these procedures.

9. This Article also shall apply to goods of a commercial nature sent in small consignments. A Party may exclude from the application of this Article small quantities of goods of a non-commercial nature contained in travellers' personal luggage.

Article 18.77: Criminal Procedures and Penalties

1. Each Party shall provide for criminal procedures and penalties to be applied at least in cases of wilful trademark counterfeiting or copyright or related rights piracy on a commercial scale. In respect of wilful copyright or related rights piracy, "on a commercial scale" includes at least:

(a) acts carried out for commercial advantage or financial gain; and

(b) significant acts, not carried out for commercial advantage or financial gain, that have a substantial prejudicial impact on the interests of the copyright or related rights holder in relation to the marketplace.

2. Each Party shall treat wilful importation or exportation of counterfeit trademark goods or pirated copyright goods on a commercial scale as unlawful activities subject to criminal penalties.

3. Each Party shall provide for criminal procedures and penalties to be applied in cases of wilful importation and domestic use, in the course of trade and on a commercial scale, of a label or packaging:

(a) to which a trademark has been applied without authorisation that is identical to, or cannot be distinguished from, a trademark registered in its territory; and

(b) that is intended to be used in the course of trade on goods or in relation to services that are identical to goods or services for which that trademark is registered.

4. Recognising the need to address the unauthorised copying 131 of a cinematographic work from a performance in a movie theatre that causes significant harm to a right holder in the market for that work, and recognising the need to deter such harm, each Party shall adopt or maintain measures, which shall at a minimum include, but need not be limited to, appropriate criminal procedures and penalties.

5. With respect to the offences for which this Article requires a Party to provide for criminal procedures and penalties, each Party shall ensure that criminal liability for aiding and abetting is available under its law.

6. With respect to the offences described in paragraphs 1 through 5, each Party shall provide the following:

(a) Penalties that include sentences of imprisonment as well as monetary fines sufficiently high to provide a deterrent to future acts of infringement, consistent with the level of penalties applied for crimes of a corresponding gravity.

(b) Its judicial authorities have the authority, in determining penalties, to account for the seriousness of the circumstances, which may include circumstances that involve threats to, or effects on, health or safety.

(c) Its judicial or other competent authorities have the authority to order the seizure of suspected counterfeit trademark goods or pirated copyright goods, any related materials and implements used in the commission of the alleged offence, documentary evidence relevant to the alleged offence and assets derived from, or obtained through the alleged infringing activity. If a Party requires identification of items subject to seizure as a prerequisite for issuing a judicial order referred to in this subparagraph, that Party shall not require the items to be described in greater detail than necessary to identify them for the purpose of seizure.

(d) Its judicial authorities have the authority to order the forfeiture, at least for serious offences, of any assets derived from or obtained through the infringing activity.

(e) Its judicial authorities have the authority to order the forfeiture or destruction of:

(i) all counterfeit trademark goods or pirated copyright goods;

(ii) materials and implements that have been predominantly used in the creation of pirated copyright goods or counterfeit trademark goods; and

(iii) any other labels or packaging to which a counterfeit trademark has been applied and that have been used in the commission of the offence.

In cases in which counterfeit trademark goods and pirated copyright goods are not destroyed, the judicial or other competent authorities shall ensure that, except in exceptional circumstances, those goods are disposed of outside the channels of commerce in such a manner as to avoid causing any harm to the right holder. Each Party shall further provide that forfeiture or destruction under this subparagraph and subparagraph (c) shall occur without compensation of any kind to the defendant.

(f) Its judicial or other competent authorities have the authority to release or, in the alternative, provide access to, goods, material, implements, and other evidence held by the relevant authority to a right holder for civil134 infringement proceedings.

(g) Its competent authorities may act upon their own initiative to initiate legal action without the need for a formal complaint by a third person or right holder.

7. With respect to the offences described in paragraphs 1 through 5, a Party may provide that its judicial authorities have the authority to order the seizure or forfeiture of assets, or alternatively, a fine, the value of which corresponds to the assets derived from, or obtained directly or indirectly through, the infringing activity.

Article 18.78: Trade Secrets

1. In the course of ensuring effective protection against unfair competition as provided in Article 10bis of the Paris Convention, each Party shall ensure that persons have the legal means to prevent trade secrets lawfully in their control from being disclosed to, acquired by, or used by others (including state-owned enterprises) without their consent in a manner contrary to honest commercial practices. As used in this Chapter, trade secrets encompass, at a minimum, undisclosed information as provided for in Article 39.2 of the TRIPS Agreement.

2. Subject to paragraph 3, each Party shall provide for criminal procedures and penalties for one or more of the following:

(a) the unauthorised and wilful access to a trade secret held in a computer system;

(b) the unauthorised and wilful misappropriation138 of a trade secret, including by means of a computer system; or

(c) the fraudulent disclosure, or alternatively, the unauthorised and wilful disclosure, of a trade secret, including by means of a computer system.

3. With respect to the relevant acts referred to in paragraph 2, a Party may, as appropriate, limit the availability of its criminal procedures, or limit the level of penalties available, to one or more of the following cases in which:

(a) the acts are for the purposes of commercial advantage or financial gain;

(b) the acts are related to a product or service in national or international commerce;

(d) the acts are directed by or for the benefit of or in association with a foreign economic entity; or

(e) the acts are detrimental to a Party's economic interests, international relations, or national defence or national security.

Article 18.79: Protection of Encrypted Program-Carrying Satellite and Cable Signals

1. Each Party shall make it a criminal offence to:

(a) manufacture, assemble, modify, import, export, sell, lease or otherwise distribute a tangible or intangible device or system knowing or having reason to know140 that the device or system meets at least one of the following conditions:

(i) it is intended to be used to assist;

(ii) it is primarily of assistance; or

(iii) its principal function is solely to assist, in decoding an encrypted program-carrying satellite signal without the authorisation of the lawful distributor141 of such signal; and

(b) with respect to an encrypted program-carrying satellite signal, wilfully:

(i) receive such a signal; or

(ii) further distribute such signal, knowing that it has been decoded without the authorisation of the lawful distributor of the signal.

2. Each Party shall provide for civil remedies for a person that holds an interest in an encrypted program-carrying satellite signal or its content and that is injured by an activity described in paragraph 1.

3. Each Party shall provide for criminal penalties or civil remedies for wilfully:

(a) manufacturing or distributing equipment knowing that the equipment is intended to be used in the unauthorised reception of any encrypted program-carrying cable signal; and

(b) receiving, or assisting another to receive, an encrypted program carrying cable signal without authorisation of the lawful distributor of the signal.

Article 18.80: Government Use of Software

1. Each Party recognises the importance of promoting the adoption of measures to enhance government awareness of respect for intellectual property rights and of the detrimental effects of the infringement of intellectual property rights.

2. Each Party shall adopt or maintain appropriate laws, regulations, policies, orders, government-issued guidelines, or administrative or executive decrees that provide that its central government agencies use only non-infringing computer software protected by copyright and related rights, and, if applicable, only use that computer software in a manner authorised by the relevant licence. These measures shall apply to the acquisition and management of the software for government use.

Section J: Internet Service Providers

Article 18.81: Definitions

For the purposes of this Section:

the term copyright includes related rights; and

Internet Service Provider means:

(a) a provider of online services for the transmission, routing, or providing of connections for digital online communications, between or among points specified by a user, of material of the user's choosing, undertaking the function in Article 18.82.2(a) (Legal Remedies and Safe Harbours); or

(b) a provider of online services undertaking the functions in Article 18.82.2(c) or Article 18.82.2(d) (Legal Remedies and Safe Harbours).

For greater certainty, Internet Service Provider includes a provider of the services listed above that engages in caching carried out through an automated process.

Article 18.82: Legal Remedies and Safe Harbours

1. The Parties recognise the importance of facilitating the continued development of legitimate online services operating as intermediaries and, in a manner consistent with Article 41 of the TRIPS Agreement, providing enforcement procedures that permit effective action by right holders against copyright infringement covered under this Chapter that occurs in the online environment. Accordingly, each Party shall ensure that legal remedies are available for right holders to address such copyright infringement and shall establish or maintain appropriate safe harbours in respect of online services that are Internet Service Providers. This framework of legal remedies and safe harbours shall include:

(a) legal incentives150 for Internet Service Providers to cooperate with copyright owners to deter the unauthorised storage and transmission of copyrighted materials or, in the alternative, to take other action to deter the unauthorised storage and transmission of copyrighted materials; and

(b) limitations in its law that have the effect of precluding monetary relief against Internet Service Providers for copyright infringements that they do not control, initiate or direct, and that take place through systems or networks controlled or operated by them or on their behalf.

2. The limitations described in paragraph 1(b) shall include limitations in respect of the following functions:

(a) transmitting, routing or providing connections for material without modification of its content or the intermediate and transient storage of that material done automatically in the course of such a technical process;

(b) caching carried out through an automated process;

(c) storage, at the direction of a user, of material residing on a system or network controlled or operated by or for the Internet Service Provider; and

(d) referring or linking users to an online location by using information location tools, including hyperlinks and directories.

3. To facilitate effective action to address infringement, each Party shall prescribe in its law conditions for Internet Service Providers to qualify for the limitations described in paragraph 1(b), or, alternatively, shall provide for circumstances under which Internet Service Providers do not qualify for the limitations described in paragraph 1(b):

(a) With respect to the functions referred to in paragraph 2(c) and paragraph 2(d), these conditions shall include a requirement for Internet Service Providers to expeditiously remove or disable access to material residing on their networks or systems upon obtaining actual knowledge of the copyright infringement or becoming aware of facts or circumstances from which the infringement is apparent, such as through receiving a notice of alleged infringement from the right holder or a person authorised to act on its behalf,

(b) An Internet Service Provider that removes or disables access to material in good faith under subparagraph (a) shall be exempt from any liability for having done so, provided that it takes reasonable steps in advance or promptly after to notify the person whose material is removed or disabled.

4. If a system for counter-notices is provided under a Party's law, and if material has been removed or access has been disabled in accordance with paragraph 3, that Party shall require that the Internet Service Provider restores the material subject to a counter-notice, unless the person giving the original notice seeks judicial relief within a reasonable period of time.

5. Each Party shall ensure that monetary remedies are available in its legal system against any person that makes a knowing material misrepresentation in a notice or counter-notice that causes injury to any interested party as a result of an Internet Service Provider relying on the misrepresentation.

6. Eligibility for the limitations in paragraph 1 shall not be conditioned on the Internet Service Provider monitoring its service or affirmatively seeking facts indicating infringing activity.

7. Each Party shall provide procedures, whether judicial or administrative, in accordance with that Party's legal system, and consistent with principles of due process and privacy, that enable a copyright owner that has made a legally sufficient claim of copyright infringement to obtain expeditiously from an Internet

Service Provider information in the provider's possession identifying the alleged infringer, in cases in which that information is sought for the purpose of protecting or enforcing that copyright.

8. The Parties understand that the failure of an Internet Service Provider to qualify for the limitations in paragraph 1(b) does not itself result in liability. Further, this Article is without prejudice to the availability of other limitations and exceptions to copyright, or any other defences under a Party's legal system.

9. The Parties recognise the importance, in implementing their obligations under this Article, of taking into account the impacts on right holders and Internet Service Providers.

Section K: Final Provisions

Article 18.83: Final Provisions

1. Except as otherwise provided in Article 18.10 (Application of Chapter to Existing Subject Matter and Prior Acts) and paragraphs 2, 3 and 4, each Party shall give effect to the provisions of this Chapter on the date of entry into force of this Agreement for that Party.

2. During the relevant periods set out below, a Party shall not amend an existing measure or adopt a new measure that is less consistent with its obligations under the Articles referred to below for that Party than relevant measures that are in effect on the date of signature of this Agreement. This Section does not affect the rights and obligations of a Party under an international agreement to which it and another Party are party.

3. With respect to works of any Party that avails itself of a transition period permitted to it with regard to implementation of Article 18.63 (Term of Protection for Copyright and Related Rights) as it relates to the term of copyright protection (transition Party), Japan and Mexico shall apply at least the term of protection available under the transition Party's law for the relevant works during the transition period and apply Article 18.8.1 (National Treatment) with respect to copyright term only when that Party fully implements Article 18.63.

4. With regard to obligations subject to a transition period, a Party shall fully implement its obligations under the provisions of this Chapter no later than the expiration of the relevant time period specified below, which begins on the date of entry into force of this Agreement for that Party.

(a) In the case of Brunei Darussalam, with respect to:

(i) Article 18.7.2(d) (International Agreements), UPOV 1991, three years;

(ii) Article 18.18 (Types of Signs Registrable as Trademarks), with respect to sound marks, three years;

(iii) Article 18.47 (Protection of Undisclosed Test or Other Data for Agricultural Chemical Products), 18 months;

(iv) Article 18.50 (Protection of Undisclosed Test or Other Data), four years; ++

(v) Article 18.51 (Biologics), four years; ++

(vi) Article 18.53 (Measures Relating to the Marketing of Certain Pharmaceutical Products), two years; and

(vii) With respect to Section J (Internet Service Providers), three years.

++ If there are unreasonable delays in Brunei Darussalam in the initiation of the filing of marketing approval applications for new pharmaceutical products after Brunei Darussalam implements its obligations under Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics) in connection with subparagraphs (a)(iv) and (a)(v), Brunei Darussalam may consider adopting measures to incentivise the timely initiation of the filing of these applications with a view to the introduction of new pharmaceutical products in its market. To that end, Brunei Darussalam shall notify the other Parties through the Commission and consult with them on such a proposed measure. Such consultations shall begin within 30 days of a request from an interested Party, and shall provide adequate time and opportunity to resolve any concerns. In addition, any such measure shall respect legitimate commercial considerations and take into account the need for incentives for the development of new pharmaceutical products and for the expeditious marketing approval in Brunei Darussalam of such products.

(b) In the case of Malaysia, with respect to:

(i) Article 18.7.2(a) (International Agreements), Madrid Protocol, four years;

(ii) Article 18.7.2(b) (International Agreements), Budapest Treaty, four years;

(iii) Article 18.7.2(c) (International Agreements), Singapore Treaty, four years;

(iv) Article 18.7.2(d) (International Agreements), UPOV 1991, four years;

(v) Article 18.18 (Types of Signs Registrable as Trademarks), with respect to sound marks, three years;

(vi) Article 18.48.2 (Patent Term Adjustment for Unreasonable Curtailment), 4.5 years;

(vii) Article 18.51 (Biologics), five years;

(viii) Article 18.53 (Measures Relating to the Marketing of Certain Pharmaceutical Products), 4.5 years;

(ix) Article 18.63(a) (Term of Protection for Copyright and Related Rights), with respect to life-based works, two years;

(x) Article 18.76 (Special Requirements Related to Border Measures), with respect to applications to suspend the release of, or to detain, ‘confusingly similar' trademark goods, four years;

(xi) Article 18.76.5(b) and (c) (Special Requirements Related to Border Measures), with respect to ex officio border enforcement for in transit and export, four years; and

(xii) Article 18.79.2 (Protection of Encrypted Program-Carrying Satellite and Cable Signals), four years.

(i) Article 18.7.2(d) (International Agreements), UPOV 1991, four years;

(ii) Article 18.47 (Protection of Undisclosed Test or Other Data for Agricultural Chemical Products), five years;

(iii) Article 18.48.2 (Patent Term Adjustment for Unreasonable Curtailment), 4.5 years;

(iv) Article 18.50 (Protection of Undisclosed Test or Other Data), five years;++

(v) Article 18.51 (Biologics), five years;++ and

(vi) Section J (Internet Service Providers), three years.

++ If there are unreasonable delays in Mexico in the initiation of the filing of marketing approval applications for new pharmaceutical products after implementing its obligations under Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics) in connection with subparagraphs (c)(iv) and (c)(v), Mexico may consider adopting measures to incentivise the timely initiation of the filing of these applications with a view to the introduction of new pharmaceutical products in its market. To that end, Mexico shall notify the other Parties through the Commission and consult with them on such a proposed measure. Such consultations shall begin within 30 days of a request from an interested Party, and shall provide adequate time and opportunity to resolve any concerns. In addition, any such measure shall respect legitimate commercial considerations and take into account the need for incentives for the development of new pharmaceutical products and for the expeditious marketing approval in Mexico of such products.

(d) In the case of New Zealand, with respect to Article 18.63 (Term of Protection for Copyright and Related Rights), eight years. Except that from the date of entry into force of this Agreement for New Zealand, New Zealand shall provide that the term of protection for a work, performance or phonogram that would, during that eight years, have expired under the term that was provided in New Zealand law before the entry into force of this Agreement, instead expires 60 years from the relevant date in Article 18.63 that is the basis for calculating the term of protection under this Agreement. The Parties understand that, in applying Article 18.10 (Application of Chapter to Existing Subject Matter and Prior Acts), New Zealand shall not be required to restore or extend the term of protection to the works, performances and phonograms with a term provided pursuant to the previous sentence, once these works, performances and phonograms fall into the public domain in its territory.

(e) In the case of Peru, with respect to:

(i) Article 18.50.2 (Protection of Undisclosed Test or Other Data), five years; and

(ii) Article 18.51 (Biologics), 10 years.

(f) In the case of Viet Nam, with respect to:

(i) Article 18.7.2(b) (International Agreements), Budapest Treaty, two years;

(ii) Article 18.7.2(e) (International Agreements), WCT, three years;

(iii) Article 18.7.2(f) (International Agreements), WPPT, three years;

(iv) Article 18.18 (Types of Signs Registrable as Trademarks), with respect to sound marks, three years;

(v) Article 18.46.3 and Article 18.46.4 (Patent Term Adjustment for Unreasonable Granting Authority Delays), with respect to patents claiming pharmaceutical products, five years;^

(vi) Article 18.46.3 and Article 18.46.4 (Patent Term Adjustment for Unreasonable Granting Authority Delays), with respect to patents claiming agricultural chemical products, five years;^

(vii) Article 18.46.3 and Article 18.46.4 (Patent Term Adjustment for Unreasonable Granting Authority Delays), three years;

(viii) Article 18.47 (Protection of Undisclosed Test or Other Data for Agricultural Chemical Products), five years;

(ix) Article 18.48.2 (Patent Term Adjustment for Unreasonable Curtailment), five years;

(x) Article 18.50 (Protection of Undisclosed Test or Other Data), 10 years;*/++

(xi) Article 18.51 (Biologics), 10 years;*/++

(xii) Article 18.53 (Measures Relating to the Marketing of Certain Pharmaceutical Products), three years;

(xiii) Article 18.63(a) (Term of Protection for Copyright and Related Rights), with respect to life-based works, five years;

(xiv) Article 18.68 (TPMs), three years;

(xv) Article 18.69 (RMI), three years;

(xvi) Article 18.76.5(b) (Special Requirements Related to Border Measures), with respect to ex officio border measures for export, three years;

(xvii) Article 18.76.5(c) (Special Requirements Related to Border Measures), with respect to ex officio border measures for in transit, two years;

(xviii) Article 18.77.1(b) (Criminal Procedures and Penalties), three years;

(xix) Article 18.77.2 (Criminal Procedures and Penalties), with respect to importation of pirated copyright goods, three years;

(xx) Article 18.77.2 (Criminal Procedures and Penalties), with respect to exportation, three years;

(xxi) Article 18.77.4 (Criminal Procedures and Penalties), with respect to camcording, three years;

(xxii) Article 18.77.6(g) (Criminal Procedures and Penalties), with respect to enforcement without the right holder's request for rights other than copyright, three years;

(xxiii) Article 18.78.2 and Article 18.78.3 (Trade Secrets), three years;

(xxiv) Article 18.79.1 (Protection of Encrypted Program-Carrying Satellite and Cable Signals), with respect to criminal remedies, three years;

(xxv) Article 18.79.3 (Protection of Encrypted Program-Carrying Satellite and Cable Signals), with respect to cable signals, three years; and

(xxvi) Section J (Internet Service Providers), three years.

^ For transitions for Article 18.46.3 and Article 18.46.4 (Patent Term Adjustment for Unreasonable Granting Authority Delays) for patents claiming pharmaceutical products and agricultural chemical products, the Parties will consider a justified request from Viet Nam for an extension of the transition period for up to one additional year. Viet Nam's request shall include the reasons for the requested extension. Viet Nam may avail itself of this one-time extension upon providing a request in accordance with this paragraph unless the Commission decides otherwise within 60 days of receiving the request. No later than the date on which the additional one-year period expires, Viet Nam shall provide to the Commission in writing a report on the measures it has taken to fulfil its obligation under Article 18.46.3 and Article 18.46.4.

* For transitions for Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics) for pharmaceutical products:

(A) The Parties will consider a justified request from Viet Nam for an extension of the transition period for up to two additional years. Viet Nam's request shall include the reason for the requested extension. Viet Nam may avail itself of this one-time extension upon providing a request in accordance with this paragraph unless the Commission decides otherwise within 60 days of receiving the request. No later than the date on which the additional two-year period expires, Viet Nam shall provide to the Commission in writing a report on the measures it has taken to fulfil its obligation under Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics).

(B) Viet Nam may make a further request for an additional one time extension pursuant to Chapter 27 (Administrative and Institutional Provisions). Viet Nam's request shall include the reason for the request. The Commission shall decide pursuant to the procedures set forth in Article 27.3 (Decision-Making), whether to grant the request based on relevant factors, which may include capacity as well as other appropriate circumstances. Viet Nam shall make the request no later than one year prior to the expiration of the two-year transition period referred to in the first sentence of paragraph (A). The Parties shall give due consideration to that request. If the Committee grants Viet Nam's request, Viet Nam shall provide to the Commission in writing a report on the measures it has taken to fulfil its obligations under Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics) no later than the date on which the extension period expires.

(C) Viet Nam's implementation of Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics) during three years after the conclusion of the extension period referred to in paragraph (A) shall not be subject to dispute settlement under Chapter 28 (Dispute Settlement).

++ If there are unreasonable delays in Viet Nam in the initiation of the filing of marketing approval applications for new pharmaceutical products after Viet Nam implements its obligations under Article 18.50 (Protection of Undisclosed Test or Other Data)

and Article 18.51 (Biologics) in connection with subparagraphs (f)(x) and (f)(xi), Viet Nam may consider adopting measures to incentivise the timely initiation of the filing of these applications with a view to the introduction of new pharmaceutical products in its market. To that end, Viet Nam shall notify the other Parties through the Commission and consult with them on such a proposed measure. Such consultations shall begin within 30 days of a request from an interested Party, and shall provide adequate time and opportunity to resolve any concerns. In addition, any such measure shall respect legitimate commercial considerations and take into account the need for incentives for the development of new pharmaceutical products and for the expeditious marketing approval in Viet Nam of such products.

Annex 18-A

Annex to Article 18.7.2

1. Notwithstanding the obligations in Article 18.7.2 (International Agreements), and subject to paragraphs 2, 3 and 4 of this Annex, New Zealand shall:

(a) accede to UPOV 1991 within three years of the date of entry into force of this Agreement for New Zealand; or

(b) adopt a sui generis plant variety rights system that gives effect to UPOV 1991 within three years of the date of entry into force of this Agreement for New Zealand.

2. Nothing in paragraph 1 shall preclude the adoption by New Zealand of measures it deems necessary to protect indigenous plant species in fulfilment of its obligations under the Treaty of Waitangi, provided that such measures are not used as a means of arbitrary or unjustified discrimination against a person of another Party.

3. The consistency of any measures referred to in paragraph 2 with the obligations in paragraph 1 shall not be subject to the dispute settlement provisions of this Agreement.

4. The interpretation of the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it, shall not be subject to the dispute settlement provisions of this Agreement. Chapter 28 (Dispute Settlement) shall otherwise apply to this Annex. A panel established under Article 28.7 (Establishment of a Panel) may be requested to determine only whether any measure referred to in paragraph 2 is inconsistent with a Party's rights under this Agreement.

Annex 18-B

Chile

1. Nothing in Article 18.50.1 or Article 18.50.2 (Protection of Undisclosed Test or Other Data) or Article 18.51 (Biologics) prevents Chile from maintaining or applying the provisions of Article 91 of Chile's Law No. 19.039 on Industrial Property, as in effect on the date of agreement in principle of this Agreement.

2. Notwithstanding Article 1.2 (Relation to Other Agreements), paragraph 1 is without prejudice to any Party's rights and obligations under an international agreement in effect prior to the date of entry into force of this Agreement for Chile, including any rights and obligations under a trade agreement between Chile and another Party.

Annex 18-C

Malaysia

1. Malaysia may, for the purpose of granting protection as specified in Article 18.50.1 and Article 18.50.2 (Protection of Undisclosed Test or Other Data) and Article 18.51.1 (Biologics), require an applicant to commence the process of obtaining marketing approval for pharmaceutical products covered under those Articles within 18 months from the date that the product is first granted marketing approval in any country.

2. For greater certainty, the periods of protection referred to in Article 18.50.1 and Article 18.50.2 (Protection of Undisclosed Test or Other Data) and Article 18.51.1 (Biologics) shall begin on the date of marketing approval of the pharmaceutical product in Malaysia.

Annex 18-D

Peru

Part 1: Applicable to Article 18.46 (Patent Term Adjustment for Unreasonable Granting Authority Delays) and Article 18.48 (Patent Term Adjustment for Unreasonable Curtailment)

To the extent that Andean Decision 486, Common Industrial Property Regime, and Andean Decision 689, Adequacy of Certain Articles of Decision 486, restricts Peru's implementation of its obligations set forth in Article 18.46.3 (Patent Term Adjustment for Unreasonable Granting Authority Delays) and Article 18.48.2 (Patent Term Adjustment for Unreasonable Curtailment), Peru commits to make its best efforts to obtain a waiver from the Andean Community that allows it to adjust its patent term in a way that is consistent with Article 18.46.3 (Patent Term Adjustment for Unreasonable Granting Authority Delays)

and Article 18.48.2 (Patent Term Adjustment for Unreasonable Curtailment). Further, if Peru demonstrates that the Andean Community withheld its request for a waiver despite its best efforts, Peru will continue ensuring that it does not discriminate with respect to the availability or enjoyment of patent rights based on the field of technology, the place of invention, and whether products are imported or locally produced. Thus, Peru confirms that the treatment of pharmaceutical patents will be no less favourable than treatment of other patents in respect of the processing and examination of patent applications.

Part 2: Applicable to Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics)

1. If Peru relies, pursuant to Article 18.50.1(b) (Protection of Undisclosed Test or Other Data), on a marketing approval granted by another Party, and grants approval within six months of the date of the filing of a complete application for marketing approval filed in Peru, Peru may provide that the protection specified in Article 18.50.1(b) (Protection of Undisclosed Test or Other Data) and Article 18.51 (Biologics), as applicable, shall begin with the date of the first marketing approval relied on. In implementing Article 18.50.1(b) (Protection of Undisclosed Test or Other Data) and Article 18.51.1(b)(i) (Biologics), Peru may apply the period of protection established in Article 16.10.2(b) of the United States – Peru Trade Promotion Agreement, done at Washington, District of Columbia, April 12, 2006.

2. Peru may apply paragraph 1 to Article 18.50.2 (Protection of Undisclosed Test or Other Data).

Annex 18-E

Annex to Section J

1. In order to facilitate the enforcement of copyright on the Internet and to avoid unwarranted market disruption in the online environment, Article 18.82.3 and Article 18.82.4 (Legal Remedies and Safe Harbours) shall not apply to a Party provided that, as from the date of agreement in principle of this Agreement, it continues to:

(a) prescribe in its law circumstances under which Internet Service Providers do not qualify for the limitations described in Article 18.82.1(b) (Legal Remedies and Safe Harbours);

(b) provide statutory secondary liability for copyright infringement in cases in which a person, by means of the Internet or another digital network, provides a service primarily for the purpose of enabling acts of copyright infringement, in relation to factors set out in its law, such as:

(i) whether the person marketed or promoted the service as one that could be used to enable acts of copyright infringement;

(ii) whether the person had knowledge that the service was used to enable a significant number of acts of copyright infringement;

(iii) whether the service has significant uses other than to enable acts of copyright infringement;

(iv) the person's ability, as part of providing the service, to limit acts of copyright infringement, and any action taken by the person to do so;

(v) any benefits the person received as a result of enabling the acts of copyright infringement; and

(vi) the economic viability of the service if it were not used to enable acts of copyright infringement;

(c) require Internet Service Providers carrying out the functions referred to in Article 18.82.2(a) and (c) (Legal Remedies and Safe Harbours) to participate in a system for forwarding notices of alleged infringement, including if material is made available online, and if the Internet Service Provider fails to do so, subjecting that provider to pre-established monetary damages for that failure;

(d) induce Internet Service Providers offering information location tools to remove within a specified period of time any reproductions of material that they make, and communicate to the public, as part of offering the information location tool upon receiving a notice of alleged infringement and after the original material has been removed from the electronic location set out in the notice; and

(e) induce Internet Service Providers carrying out the function referred to in Article 18.82.2(c) (Legal Remedies and Safe Harbours) to remove or disable access to material upon becoming aware of a decision of a court of that Party to the effect that the person storing the material infringes copyright in the material.

2. For a Party to which Article 18.82.3 and Article 18.82.4 (Legal Remedies and Safe Harbours) do not apply pursuant to paragraph 1 of this Annex, and in light of, among other things, paragraph 1(b) of this Annex, for the purposes of Article 18.82.1(a), legal incentives shall not mean the conditions for Internet

Service Providers to qualify for the limitations provided for in Article 18.82.1(b), as set out in Article 18.82.3.

Annex 18-F

Annex to Section J

As an alternative to implementing Section J (Internet Service Providers), a Party may implement Article 17.11.23 of the United States – Chile Free Trade Agreement, done at Miami, June 6, 2003, which is incorporated into and made part of this Annex.

CHAPTER 19

LABOUR

Article 19.1: Definitions

For the purposes of this Chapter:

ILO Declaration means the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998);

labour laws means statutes and regulations, or provisions of statutes and regulations, of a Party that are directly related to the following internationally recognised labour rights:

(a) freedom of association and the effective recognition of the right to collective bargaining;

(b) the elimination of all forms of forced or compulsory labour;

(c) the effective abolition of child labour, a prohibition on the worst forms of child labour and other labour protections for children and minors;

(d) the elimination of discrimination in respect of employment and occupation; and

(e) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health;

statutes and regulations and statutes or regulations means:

(a) for Australia, Acts of the Commonwealth Parliament, or regulations made by the Governor-General in Council under delegated authority under an Act of the Commonwealth Parliament;

(b) for Malaysia, the Federal Constitution, Acts of Parliament and subsidiary legislation or regulations made under Acts of Parliament;

(c) for Mexico, Acts of Congress or regulations and provisions promulgated pursuant to Acts of Congress and, for the purposes of this Chapter, includes the Constitution of the United Mexican States; and

(d) for the United States, Acts of Congress or regulations promulgated pursuant to Acts of Congress and, for the purposes of this Chapter, includes the Constitution of the United States.

Article 19.2: Statement of Shared Commitment

1. The Parties affirm their obligations as members of the ILO, including those stated in the ILO Declaration, regarding labour rights within their territories.

2. The Parties recognise that, as stated in paragraph 5 of the ILO Declaration, labour standards should not be used for protectionist trade purposes.

Article 19.3: Labour Rights

1. Each Party shall adopt and maintain in its statutes and regulations, and practices thereunder, the following rights as stated in the ILO Declaration:

(a) freedom of association and the effective recognition of the right to collective bargaining;

(b) the elimination of all forms of forced or compulsory labour;

(c) the effective abolition of child labour and, for the purposes of this Agreement, a prohibition on the worst forms of child labour; and

(d) the elimination of discrimination in respect of employment and occupation.

2. Each Party shall adopt and maintain statutes and regulations, and practices thereunder, governing acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.

Article 19.4: Non Derogation

The Parties recognise that it is inappropriate to encourage trade or investment by weakening or reducing the protections afforded in each Party's labour laws. Accordingly, no Party shall waive or otherwise derogate from, or offer to waive or otherwise derogate from, its statutes or regulations:

(a) implementing Article 19.3.1 (Labour Rights), if the waiver or derogation would be inconsistent with a right set out in that paragraph; or

(b) implementing Article 19.3.1 (Labour Rights) or Article 19.3.2 , if the waiver or derogation would weaken or reduce adherence to a right set out in Article 19.3.1, or to a condition of work referred to in Article 19.3.2, in a special trade or customs area, such as an export processing zone or foreign trade zone, in the Party's territory, in a manner affecting trade or investment between the Parties.

Article 19.5: Enforcement of Labour Laws

1. No Party shall fail to effectively enforce its labour laws through a sustained or recurring course of action or inaction in a manner affecting trade or investment between the Parties after the date of entry into force of this Agreement.

2. If a Party fails to comply with an obligation under this Chapter, a decision made by that Party on the provision of enforcement resources shall not excuse that failure. Each Party retains the right to exercise reasonable enforcement discretion and to make bona fide decisions with regard to the allocation of enforcement

resources between labour enforcement activities among the fundamental labour rights and acceptable conditions of work enumerated in Article 19.3.1 (Labour Rights) and Article 19.3.2, provided that the exercise of that discretion, and those decisions, are not inconsistent with its obligations under this Chapter.

3. Nothing in this Chapter shall be construed to empower a Party's authorities to undertake labour law enforcement activities in the territory of another Party.

Article 19.6: Forced or Compulsory Labour

Each Party recognises the goal of eliminating all forms of forced or compulsory labour, including forced or compulsory child labour. Taking into consideration that the Parties have assumed obligations in this regard under Article 19.3 (Labour Rights), each Party shall also discourage, through initiatives it considers appropriate, the importation of goods from other sources produced in whole or in part by forced or compulsory labour, including forced or compulsory child labour.

Article 19.7: Corporate Social Responsibility

Each Party shall endeavour to encourage enterprises to voluntarily adopt corporate social responsibility initiatives on labour issues that have been endorsed or are supported by that Party.

Article 19.8: Public Awareness and Procedural Guarantees

1. Each Party shall promote public awareness of its labour laws, including by ensuring that information related to its labour laws and enforcement and compliance procedures is publicly available.

2. Each Party shall ensure that persons with a recognised interest under its law in a particular matter have appropriate access to impartial and independent tribunals for the enforcement of the Party's labour laws. These tribunals may include administrative tribunals, quasi-judicial tribunals, judicial tribunals or labour tribunals, as provided for in each Party's law.

3. Each Party shall ensure that proceedings before these tribunals for the enforcement of its labour laws: are fair, equitable and transparent; comply with due process of law; and do not entail unreasonable fees or time limits or unwarranted delays. Any hearings in these proceedings shall be open to the public, except when the administration of justice otherwise requires, and in accordance with its applicable laws.

4. Each Party shall ensure that:

(a) the parties to these proceedings are entitled to support or defend their respective positions, including by presenting information or evidence; and

(b) final decisions on the merits of the case:

(i) are based on information or evidence in respect of which the parties were offered the opportunity to be heard;

(ii) state the reasons on which they are based; and

(iii) are available in writing without undue delay to the parties to the proceedings and, consistent with its law, to the public.

5. Each Party shall provide that parties to these proceedings have the right to seek review or appeal, as appropriate under its law.

6. Each Party shall ensure that the parties to these proceedings have access to remedies under its law for the effective enforcement of their rights under the Party's labour laws and that these remedies are executed in a timely manner.

7. Each Party shall provide procedures to effectively enforce the final decisions of its tribunals in these proceedings.

8. For greater certainty, and without prejudice to whether a tribunal's decision is inconsistent with a Party's obligations under this Chapter, nothing in this Chapter shall be construed to require a tribunal of a Party to reopen a decision that it has made in a particular matter.

Article 19.9: Public Submissions

1. Each Party, through its contact point designated under Article 19.13 (Contact Points), shall provide for the receipt and consideration of written submissions from persons of a Party on matters related to this Chapter in accordance with its domestic procedures. Each Party shall make readily accessible and publicly available its procedures, including timelines, for the receipt and consideration of written submissions.

2. A Party may provide in its procedures that, to be eligible for consideration, a submission should, at a minimum:

(a) raise an issue directly relevant to this Chapter;

(b) clearly identify the person or organisation making the submission; and

(c) explain, to the degree possible, how and to what extent the issue raised affects trade or investment between the Parties.

3. Each Party shall:

(a) consider matters raised by the submission and provide a timely response to the submitter, including in writing as appropriate; and

(b) make the submission and the results of its consideration available to the other Parties and the public, as appropriate, in a timely manner.

4. A Party may request from the person or organisation that made the submission additional information that is necessary to consider the substance of the submission.

Article 19.10: Cooperation

1. The Parties recognise the importance of cooperation as a mechanism for effective implementation of this Chapter, to enhance opportunities to improve labour standards and to further advance common commitments regarding labour matters, including workers' wellbeing and quality of life and the principles and rights stated in the ILO Declaration.

2. In undertaking cooperative activities, the Parties shall be guided by the following principles:

(a) consideration of each Party's priorities, level of development and available resources;

(b) broad involvement of, and mutual benefit to, the Parties;

(c) relevance of capacity and capability-building activities, including technical assistance between the Parties to address labour protection issues and activities to promote innovative workplace practices;

(d) generation of measurable, positive and meaningful labour outcomes;

(e) resource efficiency, including through the use of technology, as appropriate, to optimise resources used in cooperative activities;

(f) complementarity with existing regional and multilateral initiatives to address labour issues; and

(g) transparency and public participation.

3. Each Party shall invite the views and, as appropriate, participation of its stakeholders, including worker and employer representatives, in identifying potential areas for cooperation and undertaking cooperative activities. Subject to the agreement of the Parties involved, cooperative activities may occur through bilateral or plurilateral engagement and may involve relevant regional or international organisations, such as the ILO, and non-Parties.

4. The funding of cooperative activities undertaken within the framework of this Chapter shall be decided by the Parties involved on a case-by-case basis.

5. In addition to the cooperative activities outlined in this Article, the Parties shall, as appropriate, caucus and leverage their respective membership in regional and multilateral fora to further their common interests in addressing labour issues.

6. Areas of cooperation may include:

(a) job creation and the promotion of productive, quality employment, including policies to generate job-rich growth and promote sustainable enterprises and entrepreneurship;

(b) creation of productive, quality employment linked to sustainable growth and skills development for jobs in emerging industries, including environmental industries;

(d) human capital development and the enhancement of employability, including through lifelong learning, continuous education, training and the development and upgrading of skills;

(e) work-life balance;

(f) promotion of improvements in business and labour productivity, particularly in respect of SMEs;

(g) remuneration systems;

(h) promotion of the awareness of and respect for the principles and rights as stated in the ILO Declaration and for the concept of Decent Work as defined by the ILO;

(i) labour laws and practices, including the effective implementation of the principles and rights as stated in the ILO Declaration;

(j) occupational safety and health;

(k) labour administration and adjudication, for example, strengthening capacity, efficiency and effectiveness;

(l) collection and use of labour statistics;

(m) labour inspection, for example, improving compliance and enforcement mechanisms;

(n) addressing the challenges and opportunities of a diverse, multigenerational workforce, including:

(i) promotion of equality and elimination of discrimination in respect of employment and occupation for migrant workers, or in the areas of age, disability and other characteristics not related to merit or the requirements of employment;

(ii) promotion of equality of, elimination of discrimination against, and the employment interests of women; and

(iii) protection of vulnerable workers, including migrant workers, and low-waged, casual or contingent workers;

(o) addressing the labour and employment challenges of economic crises, such as through areas of common interest in the ILO Global Jobs Pact;

(p) social protection issues, including workers' compensation in case of occupational injury or illness, pension systems and employment assistance schemes;

(q) best practice for labour relations, for example, improved labour relations, including promotion of best practice in alternative dispute resolution;

(r) social dialogue, including tripartite consultation and partnership;

(s) with respect to labour relations in multi-national enterprises, promoting information sharing and dialogue related to conditions of employment by enterprises operating in two or more Parties with representative worker organisations in each Party;

(t) corporate social responsibility; and

(u) other areas as the Parties may decide.

7. Parties may undertake activities in the areas of cooperation in paragraph 6 through:

(a) workshops, seminars, dialogues and other fora to share knowledge, experiences and best practices, including online fora and other knowledge-sharing platforms;

(b) study trips, visits and research studies to document and study policies and practices;

(d) specific exchanges of technical expertise and assistance, as appropriate; and

(e) other forms as the Parties may decide.

Article 19.11: Cooperative Labour Dialogue

1. A Party may request dialogue with another Party on any matter arising under this Chapter at any time by delivering a written request to the contact point that the other Party has designated under Article 19.13 (Contact Points).

2. The requesting Party shall include information that is specific and sufficient to enable the receiving Party to respond, including identification of the matter at issue, an indication of the basis of the request under this Chapter and, when relevant, how trade or investment between the Parties is affected.

3. Unless the requesting and receiving Parties (the dialoguing Parties) decide otherwise, dialogue shall commence within 30 days of a Party's receipt of a request for dialogue. The dialoguing Parties shall engage in dialogue in good faith. As part of the dialogue, the dialoguing Parties shall provide a means for receiving and considering the views of interested persons on the matter.

4. Dialogue may be held in person or by any technological means available to the dialoguing Parties.

5. The dialoguing Parties shall address all the issues raised in the request. If the dialoguing Parties resolve the matter, they shall document any outcome, including, if appropriate, specific steps and timelines that they have agreed. The dialoguing Parties shall make the outcome available to the public, unless they decide otherwise.

6. In developing an outcome pursuant to paragraph 5, the dialoguing Parties should consider all available options and may jointly decide on any course of action they consider appropriate, including:

(a) the development and implementation of an action plan in any form that they find satisfactory, which may include specific and verifiable steps, such as on labour inspection, investigation or compliance action, and appropriate timeframes;

(b) the independent verification of compliance or implementation by individuals or entities, such as the ILO, chosen by the dialoguing Parties; and

(c) appropriate incentives, such as cooperative programmes and capacity building, to encourage or assist the dialoguing Parties to identify and address labour matters.

Article 19.12: Labour Council

1. The Parties hereby establish a Labour Council (Council) composed of senior governmental representatives at the ministerial or other level, as designated by each Party.

2. The Council shall meet within one year of the date of entry into force of this Agreement. Thereafter, the Council shall meet every two years, unless the Parties decide otherwise.

3. The Council shall:

(a) consider matters related to this Chapter;

(b) establish and review priorities to guide decisions by the Parties about labour cooperation and capacity building activities undertaken pursuant to this Chapter, taking into account the principles in Article 19.10.2 (Cooperation);

(d) oversee and evaluate the general work programme;

(e) review reports from the contact points designated under Article 19.13 (Contact Points);

(f) discuss matters of mutual interest;

(g) facilitate public participation and awareness of the implementation of this Chapter; and

(h) perform any other functions as the Parties may decide.

4. During the fifth year after the date of entry into force of this Agreement, or as otherwise decided by the Parties, the Council shall review the implementation of this Chapter with a view to ensuring its effective operation and report the findings and any recommendations to the Commission.

5. The Council may undertake subsequent reviews as agreed by the Parties. 6. The Council shall be chaired by each Party on a rotational basis.

7. All Council decisions and reports shall be made by consensus and be made publicly available, unless the Council decides otherwise.

8. The Council shall agree on a joint summary report on its work at the end of each Council meeting.

9. The Parties shall, as appropriate, liaise with relevant regional and international organisations, such as the ILO and APEC, on matters related to this Chapter. The Council may seek to develop joint proposals or collaborate with those organisations or with non-Parties.

Article 19.13: Contact Points

1. Each Party shall designate an office or official within its labour ministry or equivalent entity as a contact point to address matters related to this Chapter within 90 days of the date of entry into force of this Agreement for that Party. Each Party shall notify the other Parties promptly in the event of any change to its contact point.

2. The contact points shall:

(a) facilitate regular communication and coordination between the Parties;

(b) assist the Council;

(d) act as a channel for communication with the public in their respective territories; and

(e) work together, including with other appropriate agencies of their governments, to develop and implement cooperative activities, guided by the priorities of the Council, areas of cooperation identified in Article 19.10.6 (Cooperation) and the needs of the Parties.

3. Contact points may develop and implement specific cooperative activities bilaterally or plurilaterally.

4. Contact points may communicate and coordinate activities in person or through electronic or other means of communication.

Article 19.14: Public Engagement

1. In conducting its activities, including meetings, the Council shall provide a means for receiving and considering the views of interested persons on matters related to this Chapter.

2. Each Party shall establish or maintain, and consult, a national labour consultative or advisory body or similar mechanism, for members of its public, including representatives of its labour and business organisations, to provide views on matters regarding this Chapter.

Article 19.15: Labour Consultations

1. The Parties shall make every effort through cooperation and consultation based on the principle of mutual respect to resolve any matter arising under this Chapter.

2. A Party (requesting Party) may, at any time, request labour consultations with another Party (responding Party) regarding any matter arising under this Chapter by delivering a written request to the responding Party's contact point. The requesting Party shall include information that is specific and sufficient to enable the responding Party to respond, including identification of the matter at issue and an indication of the legal basis of the request under this Chapter. The requesting Party shall circulate the request to the other Parties through their respective contact points.

3. The responding Party shall, unless agreed otherwise with the requesting Party, reply to the request in writing no later than seven days after the date of its receipt. The responding Party shall circulate the reply to the other Parties and enter into labour consultations in good faith.

4. A Party other than the requesting Party or the responding Party (the consulting Parties) that considers that it has a substantial interest in the matter may participate in the labour consultations by delivering a written notice to the other Parties within seven days of the date of circulation by the requesting Party of the request for labour consultations. The Party shall include in its notice an explanation of its substantial interest in the matter.

5. The Parties shall begin labour consultations no later than 30 days after the date of receipt by the responding Party of the request.

6. In the labour consultations:

(a) each consulting Party shall provide sufficient information to enable a full examination of the matter; and

(b) any Party participating in the consultations shall treat any confidential information exchanged in the course of the consultations on the same basis as the Party providing the information.

7. Labour consultations may be held in person or by any technological means available to the consulting Parties. If labour consultations are held in person, they shall be held in the capital of the responding Party, unless the consulting Parties agree otherwise.

8. The consulting Parties shall make every attempt to arrive at a mutually satisfactory resolution of the matter through labour consultations under this Article, taking into account opportunities for cooperation related to the matter. The consulting Parties may request advice from an independent expert or experts chosen by the consulting Parties to assist them. The consulting Parties may have

recourse to such procedures as good offices, conciliation or mediation.

9. In labour consultations under this Article, a consulting Party may request another consulting Party to make available personnel of its government agencies or other regulatory bodies with expertise in the matter that is the subject of the labour consultations.

10. If the consulting Parties are unable to resolve the matter, any consulting Party may request that the Council representatives of the consulting Parties convene to consider the matter by delivering a written request to the other consulting Party through its contact point. The Party making that request shall inform the other Parties through their contact points. The Council representatives of the consulting Parties shall convene no later than 30 days after the date of receipt of the request, unless the consulting Parties agree otherwise, and shall seek to resolve the matter, including, if appropriate, by consulting independent experts and having recourse to such procedures as good offices, conciliation or mediation.

11. If the consulting Parties are able to resolve the matter, they shall document any outcome including, if appropriate, specific steps and timelines agreed upon. The consulting Parties shall make the outcome available to the other Parties and to the public, unless they agree otherwise.

12. If the consulting Parties have failed to resolve the matter no later than 60 days after the date of receipt of a request under paragraph 2, the requesting Party may request the establishment of a panel under Article 28.7 (Establishment of a Panel) and, as provided in Chapter 28 (Dispute Settlement), thereafter have recourse to the other provisions of that Chapter.

13. No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for a matter arising under this Chapter without first seeking to resolve the matter in accordance with this Article.

14. A Party may have recourse to labour consultations under this Article without prejudice to the commencement or continuation of cooperative labour dialogue under Article 19.11 (Cooperative Labour Dialogue).

15. Labour consultations shall be confidential and without prejudice to the rights of any Party in any other proceedings.

CHAPTER 20

ENVIRONMENT

Article 20.1: Definitions

For the purposes of this Chapter:

environmental law means a statute or regulation of a Party, or provision thereof, including any that implements the Party's obligations under a multilateral environmental agreement, the primary purpose of which is the protection of the environment, or the prevention of a danger to human life or health, through:

(a) the prevention, abatement or control of: the release, discharge or emission of pollutants or environmental contaminants;

(b) the control of environmentally hazardous or toxic chemicals, substances, materials or wastes, and the dissemination of information related thereto; or

(c) the protection or conservation of wild flora or fauna, including endangered species, their habitat, and specially protected natural areas

but does not include a statute or regulation, or provision thereof, directly related to worker safety or health, nor any statute or regulation, or provision thereof, the primary purpose of which is managing the subsistence or aboriginal harvesting of natural resources; and

statute or regulation means:

(a) for Australia, an Act of the Commonwealth Parliament, or a regulation made by the Governor-General in Council under delegated authority under an Act of the Commonwealth Parliament, that is enforceable at the central level of government;

(b) for Brunei Darussalam, an Act, Order or a Regulation promulgated pursuant to the Constitution of Brunei Darussalam, enforceable by the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam;

(c) for Canada, an Act of the Parliament of Canada or regulation made under an Act of the Parliament of Canada that is enforceable by action of the central level of government;

(d) for Chile, a law of National Congress or decree of the President of the Republic, enacted as indicated by the Political Constitution of the Republic of Chile;

(e) for Japan, a Law of the Diet, a Cabinet Order, or a Ministerial Ordinance and other Orders established pursuant to a Law of the Diet, that is enforceable by action of the central level of government;

(f) for Malaysia, an Act of Parliament or regulation promulgated pursuant to an Act of Parliament that is enforceable by action of the federal government;

(g) for Mexico, an Act of Congress or regulation promulgated pursuant to an Act of Congress that is enforceable by action of the federal level of government;

(h) for New Zealand, an Act of the Parliament of New Zealand or a regulation made under an Act of the Parliament of New Zealand by the Governor-General in Council, which is enforceable by action of the central level of government;

(i) for Peru, a law of Congress, Decree or Resolution promulgated by the central level of government to implement a law of Congress that is enforceable by action of the central level of government;

(j) for Singapore, an Act of the Parliament of Singapore, or a Regulation promulgated pursuant to an Act of the Parliament of Singapore, which is enforceable by action of the Government of Singapore;

(k) for the United States, an Act of Congress or regulation promulgated pursuant to an Act of Congress that is enforceable by action of the central level of government; and

(l) for Viet Nam, a law of the National Assembly, an ordinance of the Standing Committee of the National Assembly, or a regulation promulgated by the central level of government to implement a law of the National Assembly or an ordinance of the Standing Committee of the National Assembly that is enforceable by action of the central level of government.

Article 20.2: Objectives

1. The objectives of this Chapter are to promote mutually supportive trade and environmental policies; promote high levels of environmental protection and effective enforcement of environmental laws; and enhance the capacities of the Parties to address trade-related environmental issues, including through cooperation.

2. Taking account of their respective national priorities and circumstances, the Parties recognise that enhanced cooperation to protect and conserve the environment and sustainably manage their natural resources brings benefits that can contribute to sustainable development, strengthen their environmental governance and complement the objectives of this Agreement.

3. The Parties further recognise that it is inappropriate to establish or use their environmental laws or other measures in a manner which would constitute a disguised restriction on trade or investment between the Parties.

Article 20.3: General Commitments

1. The Parties recognise the importance of mutually supportive trade and environmental policies and practices to improve environmental protection in the furtherance of sustainable development.

2. The Parties recognise the sovereign right of each Party to establish its own levels of domestic environmental protection and its own environmental priorities, and to establish, adopt or modify its environmental laws and policies accordingly.

3. Each Party shall strive to ensure that its environmental laws and policies provide for, and encourage, high levels of environmental protection and to continue to improve its respective levels of environmental protection.

4. No Party shall fail to effectively enforce its environmental laws through a sustained or recurring course of action or inaction in a manner affecting trade or investment between the Parties, after the date of entry into force of this Agreement for that Party.

5. The Parties recognise that each Party retains the right to exercise discretion and to make decisions regarding: (a) investigatory, prosecutorial, regulatory and compliance matters; and (b) the allocation of environmental enforcement resources with respect to other environmental laws determined to have higher priorities. Accordingly, the Parties understand that with respect to the enforcement of environmental laws a Party is in compliance with paragraph 4 if a course of action or inaction reflects a reasonable exercise of that discretion, or results from a bona fide decision regarding the allocation of those resources in accordance with priorities for enforcement of its environmental laws.

6. Without prejudice to paragraph 2, the Parties recognise that it is inappropriate to encourage trade or investment by weakening or reducing the protection afforded in their respective environmental laws. Accordingly, a Party shall not waive or otherwise derogate from, or offer to waive or otherwise derogate from, its environmental laws in a manner that weakens or reduces the protection afforded in those laws in order to encourage trade or investment between the Parties.

7. Nothing in this Chapter shall be construed to empower a Party's authorities to undertake environmental law enforcement activities in the territory of another Party.

Article 20.4: Multilateral Environmental Agreements

1. The Parties recognise that multilateral environmental agreements to which they are party play an important role, globally and domestically, in protecting the environment and that their respective implementation of these agreements is critical to achieving the environmental objectives of these agreements. Accordingly, each Party affirms its commitment to implement the multilateral environmental agreements to which it is a party.

2. The Parties emphasise the need to enhance the mutual supportiveness between trade and environmental law and policies, through dialogue between the Parties on trade and environmental issues of mutual interest, particularly with respect to the negotiation and implementation of relevant multilateral environmental agreements and trade agreements.

Article 20.5: Protection of the Ozone Layer

1. The Parties recognise that emissions of certain substances can significantly deplete and otherwise modify the ozone layer in a manner that is likely to result in adverse effects on human health and the environment. Accordingly, each Party shall take measures to control the production and consumption of, and trade in, such substances.

2. The Parties also recognise the importance of public participation and consultation, in accordance with their respective law or policy, in the development and implementation of measures concerning the protection of the ozone layer. Each Party shall make publicly available appropriate information about its programmes and activities, including cooperative programmes, that are related to ozone layer protection.

3. Consistent with Article 20.12 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest related to ozone-depleting substances. Cooperation may include, but is not limited to exchanging information and experiences in areas related to:

(a) environmentally friendly alternatives to ozone-depleting substances;

(b) refrigerant management practices, policies and programmes;

(d) combating illegal trade in ozone-depleting substances.

Article 20.6: Protection of the Marine Environment from Ship Pollution

1. The Parties recognise the importance of protecting and preserving the marine environment. To that end, each Party shall take measures to prevent the pollution of the marine environment from ships.

2. The Parties also recognise the importance of public participation and consultation, in accordance with their respective law or policy, in the development and implementation of measures to prevent the pollution of the marine environment from ships. Each Party shall make publicly available appropriate information about its programmes and activities, including cooperative programmes, that are related to the prevention of pollution of the marine environment from ships.

3. Consistent with Article 20.12 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest with respect to pollution of the marine environment from ships. Areas of cooperation may include:

(a) accidental pollution from ships;

(b) pollution from routine operations of ships;

(d) development of technologies to minimise ship-generated waste; (e) emissions from ships;

(f) adequacy of port waste reception facilities;

(g) increased protection in special geographic areas; and

(h) enforcement measures including notifications to flag States and, as appropriate, by port States.

Article 20.7: Procedural Matters

1. Each Party shall promote public awareness of its environmental laws and policies, including enforcement and compliance procedures, by ensuring that relevant information is available to the public.

2. Each Party shall ensure that an interested person residing or established in its territory may request that the Party's competent authorities investigate alleged violations of its environmental laws, and that the competent authorities give those requests due consideration, in accordance with the Party's law.

3. Each Party shall ensure that judicial, quasi-judicial or administrative proceedings for the enforcement of its environmental laws are available under its law and that those proceedings are fair, equitable, transparent and comply with due process of law. Any hearings in these proceedings shall be open to the public,

except when the administration of justice otherwise requires, and in accordance with its applicable laws.

4. Each Party shall ensure that persons with a recognised interest under its law in a particular matter have appropriate access to proceedings referred to in paragraph 3.

5. Each Party shall provide appropriate sanctions or remedies for violations of its environmental laws for the effective enforcement of those laws. Those sanctions or remedies may include a right to bring an action directly against the violator to seek damages or injunctive relief, or a right to seek governmental action.

6. Each Party shall ensure that it takes appropriate account of relevant factors in the establishment of the sanctions or remedies referred to in paragraph 5. Those factors may include the nature and gravity of the violation, damage to the environment and any economic benefit the violator derived from the violation.

Article 20.8: Opportunities for Public Participation

1. Each Party shall seek to accommodate requests for information regarding the Party's implementation of this Chapter.

2. Each Party shall make use of existing, or establish new, consultative mechanisms, for example national advisory committees, to seek views on matters related to the implementation of this Chapter. These mechanisms may include persons with relevant experience, as appropriate, including experience in business, natural resource conservation and management, or other environmental matters.

Article 20.9: Public Submissions

1. Each Party shall provide for the receipt and consideration of written submissions from persons of that Party regarding its implementation of this Chapter. Each Party shall respond in a timely manner to such submissions in writing and in accordance with domestic procedures, and make the submissions and its responses available to the public, for example by posting on an appropriate public website.

2. Each Party shall make its procedures for the receipt and consideration of written submissions readily accessible and publicly available, for example by posting on an appropriate public website. These procedures may provide that to be eligible for consideration the submission should:

(a) be in writing in one of the official languages of the Party receiving the submission;

(b) clearly identify the person making the submission;

(c) provide sufficient information to allow for the review of the submission including any documentary evidence on which the submission may be based;

(d) explain how, and to what extent, the issue raised affects trade or investment between the Parties;

(e) not raise issues that are the subject of ongoing judicial or administrative proceedings; and

(f) indicate whether the matter has been communicated in writing to the relevant authorities of the Party and the Party's response, if any.

3. Each Party shall notify the other Parties of the entity or entities responsible for receiving and responding to any written submissions referred to in paragraph 1 within 180 days of the date of entry into force of this Agreement for that Party.

4. If a submission asserts that a Party is failing to effectively enforce its environmental laws and following the written response to the submission by that Party, any other Party may request that the Committee on Environment (Committee) discuss that submission and written response with a view to further understanding the matter raised in the submission and, as appropriate, to consider whether the matter could benefit from cooperative activities.

5. At its first meeting, the Committee shall establish procedures for discussing submissions and responses that are referred to it by a Party. These procedures may provide for the use of experts or existing institutional bodies to develop a report for the Committee comprised of information based on facts relevant to the matter.

6. No later than three years after the date of entry into force of this Agreement, and thereafter as decided by the Parties, the Committee shall prepare a written report for the Commission on the implementation of this Article. For the purposes of preparing this report, each Party shall provide a written summary regarding its implementation activities under this Article.

Article 20.10: Corporate Social Responsibility

Each Party should encourage enterprises operating within its territory or jurisdiction, to adopt voluntarily, into their policies and practices, principles of corporate social responsibility that are related to the environment, consistent with internationally recognised standards and guidelines that have been endorsed or are supported by that Party.

Article 20.11: Voluntary Mechanisms to Enhance Environmental Performance

1. The Parties recognise that flexible, voluntary mechanisms, for example, voluntary auditing and reporting, market-based incentives, voluntary sharing of information and expertise, and public-private partnerships, can contribute to the achievement and maintenance of high levels of environmental protection and complement domestic regulatory measures. The Parties also recognise that those mechanisms should be designed in a manner that maximises their environmental benefits and avoids the creation of unnecessary barriers to trade.

2. Therefore, in accordance with its laws, regulations or policies and to the extent it considers appropriate, each Party shall encourage:

(a) the use of flexible and voluntary mechanisms to protect natural resources and the environment in its territory; and

(b) its relevant authorities, businesses and business organisations, non governmental organisations and other interested persons involved in the development of criteria used to evaluate environmental performance, with respect to these voluntary mechanisms, to continue to develop and improve such criteria.

3. Further, if private sector entities or non-governmental organisations develop voluntary mechanisms for the promotion of products based on their environmental qualities, each Party should encourage those entities and organisations to develop voluntary mechanisms that, among other things:

(a) are truthful, are not misleading and take into account scientific and technical information;

(b) if applicable and available, are based on relevant international standards, recommendations or guidelines, and best practices;

(d) do not treat a product less favourably on the basis of origin.

Article 20.12: Cooperation Frameworks

1. The Parties recognise the importance of cooperation as a mechanism to implement this Chapter, to enhance its benefits and to strengthen the Parties' joint and individual capacities to protect the environment and to promote sustainable development as they strengthen their trade and investment relations.

2. Taking account of their national priorities and circumstances, and available resources, the Parties shall cooperate to address matters of joint or common interest among the participating Parties related to the implementation of this Chapter, when there is mutual benefit from that cooperation. This cooperation may be carried out on a bilateral or plurilateral basis between Parties and, subject to consensus by the participating Parties, may include non

governmental bodies or organisations and non-Parties to this Agreement.

3. Each Party shall designate the authority or authorities responsible for cooperation related to the implementation of this Chapter to serve as its national contact point on matters that relate to coordination of cooperation activities and shall notify the other Parties in writing within 90 days of the date of entry into force of this Agreement for that Party of its contact point. On notifying the other Parties of its contact point, or at any time thereafter through the contact points, a Party may:

(a) share its priorities for cooperation with the other Parties, including the objectives of that cooperation; and

(b) propose cooperation activities related to the implementation of this Chapter to another Party or Parties.

4. When possible and appropriate, the Parties shall seek to complement and use their existing cooperation mechanisms and take into account relevant work of regional and international organisations.

5. Cooperation may be undertaken through various means including: dialogues, workshops, seminars, conferences, collaborative programmes and projects; technical assistance to promote and facilitate cooperation and training; the sharing of best practices on policies and procedures; and the exchange of experts.

6. In developing cooperative activities and programmes, a Party shall, if relevant, identify performance measures and indicators to assist in examining and evaluating the efficiency, effectiveness and progress of specific cooperative activities and programmes and share those measures and indicators, as well as the outcome of any evaluation during or following the completion of a cooperative activity or programme, with the other Parties.

7. The Parties, through their contact points for cooperation, shall periodically review the implementation and operation of this Article and report their findings, which may include recommendations, to the Committee to inform its review under Article 20.19(3)(c) (Environment Committee and Contact Points). The Parties, through the Committee, may periodically evaluate the necessity of designating an entity to provide administrative and operational support for cooperative activities. If the Parties decide to establish such an entity, the Parties shall agree on the funding of the entity on a voluntary basis to support the entity's operation.

8. Each Party shall promote public participation in the development and implementation of cooperative activities, as appropriate. This may include activities such as encouraging and facilitating direct contacts and cooperation among relevant entities and the conclusion of arrangements among them for the conduct of cooperative activities under this Chapter.

9. Where a Party has defined the environmental laws under Article 20.1 (Definitions) to include only laws at the central level of government (first Party), and where another Party (second Party) considers that an environmental law at the sub-central level of government of the first Party is not being effectively enforced by the relevant sub-central government through a sustained or recurring course of action or inaction in a manner affecting trade or investment between the Parties, the second Party may request a dialogue with the first Party. The request shall contain information that is specific and sufficient to enable the first Party to evaluate the matter at issue and an indication of how the matter is negatively affecting trade or investment of the second Party.

10. All cooperative activities under this Chapter are subject to the availability of funds and of human and other resources, and to the applicable laws and regulations of the participating Parties. The participating Parties shall decide, on a case-by-case basis, the funding of cooperative activities.

Article 20.13: Trade and Biodiversity

1. The Parties recognise the importance of conservation and sustainable use of biological diversity and their key role in achieving sustainable development.

2. Accordingly, each Party shall promote and encourage the conservation and sustainable use of biological diversity, in accordance with its law or policy.

3. The Parties recognise the importance of respecting, preserving and maintaining knowledge and practices of indigenous and local communities embodying traditional lifestyles that contribute to the conservation and sustainable use of biological diversity.

4. The Parties recognise the importance of facilitating access to genetic resources within their respective national jurisdictions, consistent with each Party's international obligations. The Parties further recognise that some Parties require, through national measures, prior informed consent to access such genetic resources in accordance with national measures and, where such access is granted, the establishment of mutually agreed terms, including with respect to sharing of benefits from the use of such genetic resources, between users and providers.

5. The Parties also recognise the importance of public participation and consultation, in accordance with their respective law or policy, in the development and implementation of measures concerning the conservation and sustainable use of biological diversity. Each Party shall make publicly available information about its programmes and activities, including cooperative programmes, related to the conservation and sustainable use of biological diversity.

6. Consistent with Article 20.12 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest. Cooperation may include, but is not limited to, exchanging information and experiences in areas related to:

(a) the conservation and sustainable use of biological diversity;

(b) the protection and maintenance of ecosystems and ecosystem services; and

Article 20.14: Invasive Alien Species

1. The Parties recognise that the movement of terrestrial and aquatic invasive alien species across borders through trade-related pathways can adversely affect the environment, economic activities and development, and human health. The Parties also recognise that the prevention, detection, control and, when possible, eradication, of invasive alien species are critical strategies for managing those adverse impacts.

2. Accordingly, the Committee shall coordinate with the Committee on Sanitary and Phytosanitary Measures established under Article 7.5 (Committee on Sanitary and Phytosanitary Measures) to identify cooperative opportunities to share information and management experiences on the movement, prevention, detection, control and eradication of invasive alien species, with a view to enhancing efforts to assess and address the risks and adverse impacts of invasive alien species.

Article 20.15: Transition to a Low Emissions and Resilient Economy

1. The Parties acknowledge that transition to a low emissions economy requires collective action.

2. The Parties recognise that each Party's actions to transition to a low emissions economy should reflect domestic circumstances and capabilities and, consistent with Article 20.12 (Cooperation Frameworks), Parties shall cooperate to address matters of joint or common interest. Areas of cooperation may include, but are not limited to: energy efficiency; development of cost-effective, low emissions technologies and alternative, clean and renewable energy sources; sustainable transport and sustainable urban infrastructure development; addressing deforestation and forest degradation; emissions monitoring; market and non market mechanisms; low emissions, resilient development and sharing of information and experiences in addressing this issue. Further, the Parties shall, as appropriate, engage in cooperative and capacity-building activities related to transitioning to a low emissions economy.

Article 20.16: Marine Capture Fisheries

1. The Parties acknowledge their role as major consumers, producers and traders of fisheries products and the importance of the marine fisheries sector to their development and to the livelihoods of their fishing communities, including artisanal or small-scale fisheries. The Parties also acknowledge that the fate of marine capture fisheries is an urgent resource problem facing the international community. Accordingly, the Parties recognise the importance of taking measures aimed at the conservation and the sustainable management of fisheries.

2. In this regard, the Parties acknowledge that inadequate fisheries management, fisheries subsidies that contribute to overfishing and overcapacity, and illegal, unreported and unregulated (IUU) fishing11 can have significant negative impacts on trade, development and the environment and recognise the need for individual and collective action to address the problems of overfishing and unsustainable utilisation of fisheries resources.

3. Accordingly, each Party shall seek to operate a fisheries management system that regulates marine wild capture fishing and that is designed to:

(a) prevent overfishing and overcapacity;

(b) reduce bycatch of non-target species and juveniles, including through the regulation of fishing gear that results in bycatch and the regulation of fishing in areas where bycatch is likely to occur; and

(c) promote the recovery of overfished stocks for all marine fisheries in which that Party's persons conduct fishing activities.

Such a management system shall be based on the best scientific evidence available and on internationally recognised best practices for fisheries management and conservation as reflected in the relevant provisions of international instruments aimed at ensuring the sustainable use and conservation of marine species.

4. Each Party shall promote the long-term conservation of sharks, marine turtles, seabirds, and marine mammals, through the implementation and effective enforcement of conservation and management measures. Such measures should include, as appropriate:

(a) for sharks: the collection of species specific data, fisheries bycatch mitigation measures, catch limits, and finning prohibitions; and

(b) for marine turtles, seabirds, and marine mammals: fisheries bycatch mitigation measures, conservation and relevant management measures, prohibitions, and other measures in accordance with relevant international agreements to which the Party is party.

5. The Parties recognise that the implementation of a fisheries management system that is designed to prevent overfishing and overcapacity and to promote the recovery of overfished stocks must include the control, reduction and eventual elimination of all subsidies that contribute to overfishing and overcapacity. To that end, no Party shall grant or maintain any of the following subsidies within the meaning of Article 1.1 of the SCM Agreement that are specific within the meaning of Article 2 of the SCM Agreement:

(a) subsidies for fishing that negatively affect15 fish stocks that are in an overfished16 condition; and

(b) subsidies provided to any fishing vessel while listed by the flag State or a relevant Regional Fisheries Management Organisation or Arrangement for IUU fishing in accordance with the rules and procedures of that organisation or arrangement and in conformity with international law.

6. Subsidy programmes that are established by a Party before the date of entry into force of this Agreement for that Party and which are inconsistent with paragraph 5(a) shall be brought into conformity with that paragraph as soon as possible and no later than three years of the date of entry into force of this Agreement for that Party.

7. In relation to subsidies that are not prohibited by paragraph 5(a) or 5(b), and taking into consideration a Party's social and developmental priorities, including food security concerns, each Party shall make best efforts to refrain from introducing new, or extending or enhancing existing, subsidies within the meaning of Article 1.1 of the SCM Agreement, to the extent they are specific within the meaning of Article 2 of the SCM Agreement, that contribute to overfishing or overcapacity.

8. With a view to achieving the objective of eliminating subsidies that contribute to overfishing and overcapacity, the Parties shall review the disciplines in paragraph 5 at regular meetings of the Committee.

9. Each Party shall notify the other Parties, within one year of the date of entry into force of this Agreement for it and every two years thereafter, of any subsidy within the meaning of Article 1.1 of the SCM Agreement that is specific within the meaning of Article 2 of the SCM Agreement, that the Party grants or maintains to persons engaged in fishing or fishing related activities.

10. These notifications shall cover subsidies provided within the previous two year period and shall include the information required under Article 25.3 of the SCM Agreement and, to the extent possible, the following information:19

(a) programme name;

(b) legal authority for the programme;

(d) status of the fish stocks in the fishery for which the subsidy is provided (for example, overexploited, depleted, fully exploited, recovering or underexploited);

(e) fleet capacity in the fishery for which the subsidy is provided;

(f) conservation and management measures in place for the relevant fish stock; and

(g) total imports and exports per species.

11. Each Party shall also provide, to the extent possible, information in relation to other fisheries subsidies that the Party grants or maintains that are not covered by paragraph 5, in particular fuel subsidies.

12. A Party may request additional information from the notifying Party regarding the notifications under paragraphs 9 and 10. The notifying Party shall respond to that request as quickly as possible and in a comprehensive manner.

13. The Parties recognise the importance of concerted international action to address IUU fishing as reflected in regional and international instruments and shall endeavour to improve cooperation internationally in this regard, including with and through competent international organisations.

14. In support of efforts to combat IUU fishing practices and to help deter trade in products from species harvested from those practices, each Party shall:

(a) cooperate with other Parties to identify needs and to build capacity to support the implementation of this Article;

(b) support monitoring, control, surveillance, compliance and enforcement systems, including by adopting, reviewing, or revising, as appropriate measures to:

(i) deter vessels that are flying its flag and its nationals from engaging in IUU fishing activities; and

(ii) address the transhipment at sea of fish or fish products caught through IUU fishing activities;

(d) strive to act consistently with relevant conservation and management measures adopted by Regional Fisheries Management Organisations of which it is not a member so as not to undermine those measures; and

(e) endeavour not to undermine catch or trade documentation schemes operated by Regional Fisheries Management Organisations or Arrangements or an intergovernmental organisation whose scope includes the management of shared fisheries resources, including straddling and highly migratory species, where that Party is not a member of those organisations or arrangements.

15. Consistent with Article 26.2.2 (Publication), a Party shall, to the extent possible, provide other Parties the opportunity to comment on proposed measures that are designed to prevent trade in fisheries products that results from IUU fishing.

Article 20.17: Conservation and Trade

1. The Parties affirm the importance of combating the illegal take of, and illegal trade in, wild fauna and flora, and acknowledge that this trade undermines efforts to conserve and sustainably manage those natural resources, has social consequences, distorts legal trade in wild fauna and flora, and reduces the economic and environmental value of these natural resources.

2. Accordingly, each Party shall adopt, maintain and implement laws, regulations and any other measures to fulfil its obligations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

3. The Parties commit to promote conservation and to combat the illegal take of, and illegal trade in, wild fauna and flora. To that end, the Parties shall:

(a) exchange information and experiences on issues of mutual interest related to combating the illegal take of, and illegal trade in, wild fauna and flora, including combating illegal logging and associated illegal trade, and promoting the legal trade in associated products;

(b) undertake, as appropriate, joint activities on conservation issues of mutual interest, including through relevant regional and international fora; and

(c) endeavour to implement, as appropriate, CITES resolutions that aim to protect and conserve species whose survival is threatened by international trade.

4. Each Party further commits to:

(a) take appropriate measures to protect and conserve wild fauna and flora that it has identified to be at risk within its territory, including measures to conserve the ecological integrity of specially protected natural areas, for example wetlands;

(b) maintain or strengthen government capacity and institutional frameworks to promote sustainable forest management and wild fauna and flora conservation, and endeavour to enhance public participation and transparency in these institutional frameworks; and

(c) endeavour to develop and strengthen cooperation and consultation with interested non-governmental entities in order to enhance implementation of measures to combat the illegal take of, and illegal trade in, wild fauna and flora.

5. In a further effort to address the illegal take of, and illegal trade in, wild fauna and flora, including parts and products thereof, each Party shall take measures to combat, and cooperate to prevent, the trade of wild fauna and flora that, based on credible evidence25, were taken or traded in violation of that Party's law or another applicable law26, the primary purpose of which is to conserve, protect, or manage wild fauna or flora. Such measures shall include sanctions, penalties, or other effective measures, including administrative measures, that can act as a deterrent to such trade. In addition, each Party shall endeavour to take measures to combat the trade of wild fauna and flora transhipped through its territory that, based on credible evidence, were illegally taken or traded.

6. The Parties recognise that each Party retains the right to exercise administrative, investigatory and enforcement discretion in its implementation of paragraph 5, including by taking into account in relation to each situation the strength of the available evidence and the seriousness of the suspected violation. In addition, the Parties recognise that in implementing paragraph 5, each Party retains the right to make decisions regarding the allocation of administrative, investigatory and enforcement resources.

7. In order to promote the widest measure of law enforcement cooperation and information sharing between the Parties to combat the illegal take of, and illegal trade in, wild fauna and flora, the Parties shall endeavour to identify opportunities, consistent with their respective law and in accordance with applicable international agreements, to enhance law enforcement cooperation and information sharing, for example by creating and participating in law enforcement networks.

Article 20.18: Environmental Goods and Services

1. The Parties recognise the importance of trade and investment in environmental goods and services as a means of improving environmental and economic performance and addressing global environmental challenges.

2. The Parties further recognise the importance of this Agreement to promoting trade and investment in environmental goods and services in the free trade area.

3. Accordingly, the Committee shall consider issues identified by a Party or Parties related to trade in environmental goods and services, including issues identified as potential non-tariff barriers to that trade. The Parties shall endeavour to address any potential barriers to trade in environmental goods and services that may be identified by a Party, including by working through the Committee and in conjunction with other relevant committees established under this Agreement, as appropriate.

4. The Parties may develop bilateral and plurilateral cooperative projects on environmental goods and services to address current and future global trade related environmental challenges.

Article 20.19: Environment Committee and Contact Points

1. Each Party shall designate and notify a contact point from its relevant authorities within 90 days of the date of entry into force of this Agreement for it, in order to facilitate communication between the Parties in the implementation of this Chapter. Each Party shall promptly notify the other Parties in the event of any change to its contact point.

2. The Parties establish an Environment Committee (Committee) composed of senior government representatives, or their designees, of the relevant trade and environment national authorities of each Party responsible for the implementation of this Chapter.

3. The purpose of the Committee is to oversee the implementation of this Chapter and its functions shall be to:

(a) provide a forum to discuss and review the implementation of this Chapter;

(b) provide periodic reports to the Commission regarding the implementation of this Chapter;

(d) consider and endeavour to resolve matters referred to it under Article 20.21 (Senior Representative Consultations);

(e) coordinate with other committees established under this Agreement as appropriate; and

(f) perform any other functions as the Parties may decide.

4. The Committee shall meet within one year of the date of entry into force of this Agreement. Thereafter, the Committee shall meet every two years unless the Committee agrees otherwise. The Chair of the Committee and the venue of its meetings shall rotate among each of the Parties in English alphabetical order, unless the Committee agrees otherwise.

5. All decisions and reports of the Committee shall be made by consensus, unless the Committee agrees otherwise or unless otherwise provided in this Chapter.

6. All decisions and reports of the Committee shall be made available to the public, unless the Committee agrees otherwise.

7. During the fifth year after the date of entry into force of this Agreement, the Committee shall:

(a) review the implementation and operation of this Chapter;

(b) report its findings, which may include recommendations, to the Parties and the Commission; and

8. The Committee shall provide for public input on matters relevant to the Committee's work, as appropriate, and shall hold a public session at each meeting.

9. The Parties recognise the importance of resource efficiency in the implementation of this Chapter and the desirability of using new technologies to facilitate communication and interaction between the Parties and with the public.

Article 20.20: Environment Consultations

1. The Parties shall at all times endeavour to agree on the interpretation and application of this Chapter, and shall make every effort through dialogue, consultation, exchange of information and, if appropriate, cooperation to address any matter that might affect the operation of this Chapter.

2. A Party (the requesting Party) may request consultations with any other Party (the responding Party) regarding any matter arising under this Chapter by delivering a written request to the responding Party's contact point. The requesting Party shall include information that is specific and sufficient to enable the responding Party to respond, including identification of the matter at issue and an indication of the legal basis for the request. The requesting Party shall circulate its request for consultations to the other Parties through their respective contact points.

3. A Party other than the requesting or the responding Party that considers it has a substantial interest in the matter (a participating Party) may participate in the consultations by delivering a written notice to the contact point of the requesting and responding Parties no later than seven days after the date of circulation of the request for consultations. The participating Party shall include in its notice an explanation of its substantial interest in the matter.

4. Unless the requesting and the responding Parties (the consulting Parties) agree otherwise, the consulting Parties shall enter into consultations promptly, and no later than 30 days after the date of receipt by the responding Party of the request.

5. The consulting Parties shall make every effort to arrive at a mutually satisfactory resolution to the matter, which may include appropriate cooperative activities. The consulting Parties may seek advice or assistance from any person or body they deem appropriate in order to examine the matter.

Article 20.21: Senior Representative Consultations

1. If the consulting Parties have failed to resolve the matter under Article 20.20 (Environment Consultations), a consulting Party may request that the Committee representatives from the consulting Parties convene to consider the matter by delivering a written request to the contact point of the other consulting Party or Parties. At the same time, the consulting Party making the request shall circulate the request to the contact points of other Parties.

2. The Committee representatives from the consulting Parties shall promptly convene following the delivery of the request, and shall seek to resolve the matter including, if appropriate, by gathering relevant scientific and technical information from governmental or non-governmental experts. Committee representatives from any other Party that considers it has a substantial interest in the matter may participate in the consultations.

Article 20.22: Ministerial Consultations

1. If the consulting Parties have failed to resolve the matter under Article 20.21 (Senior Representative Consultations), a consulting Party may refer the matter to the relevant Ministers of the consulting Parties who shall seek to resolve the matter.

2. Consultations pursuant to Article 20.20 (Environment Consultations), Article 20.21 (Senior Representative Consultations) and this Article may be held in person or by any technological means available as agreed by the consulting Parties. If in person, consultations shall be held in the capital of the responding Party, unless the consulting Parties agree otherwise.

3. Consultations shall be confidential and without prejudice to the rights of any Party in any future proceedings.

Article 20.23: Dispute Resolution

1. If the consulting Parties have failed to resolve the matter under Article 20.20 (Environment Consultations), Article 20.21 (Senior Representative Consultations) and Article 20.22 (Ministerial Consultations) within 60 days after the date of receipt of a request under Article 20.20, or any other period as the consulting Parties may agree, the requesting Party may request consultations under Article 28.5 (Consultations) or request the establishment of a panel under Article 28.7 (Establishment of a Panel).

2. Notwithstanding Article 28.15 (Role of Experts), in a dispute arising under Article 20.17.2 (Conservation and Trade) a panel convened under Chapter 28 (Dispute Settlement) shall:

(a) seek technical advice or assistance, if appropriate, from an entity authorised under CITES to address the particular matter, and provide the consulting Parties with an opportunity to comment on any such technical advice or assistance received; and

(b) provide due consideration to any interpretive guidance received pursuant to subparagraph (a) on the matter to the extent appropriate in light of its nature and status in making its findings and determinations under Article 28.17.4 (Initial Report).

3. Before a Party initiates dispute settlement under this Agreement for a matter arising under Article 20.3.4 (General Commitments) or Article 20.3.6, that Party shall consider whether it maintains environmental laws that are substantially equivalent in scope to the environmental laws that would be the subject of the dispute.

4. If a Party requests consultations with another Party under Article 20.20 (Environment Consultations) for a matter arising under Article 20.3.4 (General Commitments) or Article 20.3.6, and the responding Party considers that the requesting Party does not maintain environmental laws that are substantially equivalent in scope to the environmental laws that would be the subject of the dispute, the Parties shall discuss the issue during the consultations.

ANNEX 20-A

For Australia, the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

For Brunei Darussalam, the Customs (Prohibition and Restriction on Imports and Exports), Order.

For Canada, the Ozone-depleting Substances Regulations, 1998 of the Canadian Environmental Protection Act, 1999 (CEPA).

For Chile, Supreme Decree N° 238 (1990) of the Ministry of Foreign Affairs and Law N° 20.096.

For Japan, the Law concerning the Protection of the Ozone Layer through the Control of Specified Substances and Other Measures (Law No. 53, 1988).

For Malaysia, the Environmental Quality Act 1974.

For Mexico, the General Law on Ecological Equilibrium and Environmental Protection (Ley General del Equilibrio Ecológico y la Protección al Ambiente – LGEEPA), under Title IV Environmental Protection, Chapter I and II regarding federal enforcement of atmospheric provisions.

For New Zealand, the Ozone Layer Protection Act 1996.

For Peru, the Supreme Decree No. 033-2000-ITINCI.

For Singapore, the Environmental Protection and Management Act, including regulations made thereunder.

For the United States, 42 U.S.C §§ 7671-7671q (Stratospheric Ozone Protection).

For Viet Nam, the Law on Environmental Protection 2014; Joint Circular No. 47/2011/TTLT-BCT-BTNMT dated 30 December 2011 of the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment, regulating the management of import, export and temporary import for re-export of ozone depleting substances according to the Montreal Protocol; Decision No. 15/2006/QĐ-BTNMT dated 08 September 2006 of the Ministry of Natural Resources and Environment, issuing a list of refrigeration equipment using chlorofluorocarbons prohibited for import.

ANNEX 20-B

For Australia, the Protection of the Sea (Prevention of Pollution from Ships) Act 1983 and the Navigation Act 2012.

For Brunei Darussalam, the Prevention of Pollution of the Sea Order 2005; the Prevention of Pollution of the Sea (Oil) Regulations 2008; and the Prevention of the Pollution of the Seas (Noxious Liquid Substances in Bulk) Regulations, 2008.

For Canada, the Canada Shipping Act, 2001 and its related regulations. For Chile, the Decree N°1.689 (1995) of the Ministry of Foreign Affairs.

For Japan, the Law Relating to the Prevention of Marine Pollution and Maritime Disasters (Law No. 136, 1970).

For Malaysia, the Act 515 Merchant Shipping (Oil Pollution) Act 1994; Merchant Shipping Ordinance 1952 (amended in 2007 by Act A1316); and the Environmental Quality Act 1974.

For Mexico, Article 132 of the General Law on Ecological Equilibrium and Environmental Protection (Ley General del Equilibrio Ecológico y la Protección al Ambiente – LGEEPA).

For New Zealand, the Maritime Transport Act 1994.

For Peru, the Decree Law No. 22703; and the 1978 Protocol by Decree Law No. 22954 (March 26, 1980).

For Singapore, the Prevention of Pollution of the Sea Act, including regulations made thereunder.

For the United States, the Act to Prevent Pollution from Ships, 33 U.S.C §§ 1901- 1915.

For Viet Nam, the Law on Environmental Protection 2014; the Maritime Code 2005; Circular 50/2012/TT-BGTVT dated 19 December 2012 of the Ministry of Transport, regulating the management of receiving and processing oil-containing liquid waste from sea vessels at Viet Nam's sea ports; the National Technical Regulation on Marine Pollution Prevention Systems of Ships QCVN 26: 2014/BGTVT.

CHAPTER 21

COOPERATION AND CAPACITY BUILDING

Article 21.1: General Provisions

1. The Parties acknowledge the importance of cooperation and capacity building activities and shall undertake and strengthen these activities to assist in implementing this Agreement and enhancing its benefits, which are intended to accelerate economic growth and development.

2. The Parties recognise that cooperation and capacity building activities may be undertaken between two or more Parties, on a mutually agreed basis, and shall seek to complement and build on existing agreements or arrangements between them.

3. The Parties also recognise that the involvement of the private sector is important in these activities, and that SMEs may require assistance in participating in global markets.

Article 21.2: Areas of Cooperation and Capacity Building

1. The Parties may undertake and strengthen cooperation and capacity building activities to assist in:

(a) implementing the provisions of this Agreement;

(b) enhancing each Party's ability to take advantage of the economic opportunities created by this Agreement; and

2. Cooperation and capacity building activities may include, but are not necessarily limited to, the following areas:

(a) agricultural, industrial and services sectors;

(b) promotion of education, culture and gender equality; and (c) disaster risk management.

3. The Parties recognise that technology and innovation provides added value to cooperation and capacity building activities, and may be incorporated into cooperation and capacity building activities under this Article.

4. The Parties may undertake cooperation and capacity building activities through modes such as: dialogue, workshops, seminars, conferences, collaborative programmes and projects; technical assistance to promote and facilitate capacity building and training; the sharing of best practices on policies and procedures; and the exchange of experts, information and technology.

Article 21.3: Contact Points for Cooperation and Capacity Building

1. Each Party shall designate and notify a contact point on matters relating to the coordination of cooperation and capacity building activities in accordance with Article 27.5 (Contact Points).

2. A Party may make a request for cooperation and capacity building activities related to this Agreement to another Party or Parties through the contact points.

Article 21.4: Committee on Cooperation and Capacity Building

1. The Parties hereby establish a Committee on Cooperation and Capacity Building (Committee), composed of government representatives of each Party.

2. The Committee shall:

(a) facilitate the exchange of information between the Parties in areas including, but not limited to, experiences and lessons learned through cooperation and capacity building activities undertaken between the Parties;

(b) discuss and consider issues or proposals for future cooperation and capacity building activities;

(c) initiate and undertake collaboration, as appropriate, to enhance donor coordination and facilitate public-private partnerships in cooperation and capacity building activities;

(d) invite, as appropriate, international donor institutions, private sector entities, non-governmental organisations or other relevant institutions, to assist in the development and implementation of cooperation and capacity building activities;

(e) establish ad hoc working groups, as appropriate, which may include government representatives, non-government representatives or both;

(f) coordinate with other committees, working groups and any other subsidiary body established under this Agreement as appropriate, in support of the development and implementation of cooperation and capacity building activities;

(g) review the implementation or operation of this Chapter; and (h) engage in other activities as the Parties may decide.

3. The Committee shall meet within one year of the date of entry into force of this Agreement, and thereafter as necessary.

4. The Committee shall produce an agreed record of its meetings, including decisions and next steps and, as appropriate, report to the Commission.

Article 21.5: Resources

Recognising the different levels of development of the Parties, the Parties shall work to provide the appropriate financial or in-kind resources for cooperation and capacity building activities conducted under this Chapter, subject to the availability of resources and the comparative capabilities that different Parties possess to achieve the goals of this Chapter.

Article 21.6: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.

CHAPTER 22

COMPETITIVENESS AND BUSINESS FACILITATION

Article 22.1: Definitions

For the purposes of this Chapter:

supply chain means a cross-border network of enterprises operating together as an integrated system to design, develop, produce, market, distribute, transport, and deliver products and services to customers.

Article 22.2: Committee on Competitiveness and Business Facilitation

1. The Parties recognise that, in order to enhance the domestic, regional and global competitiveness of their economies, and to promote economic integration and development within the free trade area, their business environments must be responsive to market developments.

2. Accordingly, the Parties hereby establish a Committee on Competitiveness and Business Facilitation (Committee), composed of government representatives of each Party.

3. The Committee shall:

(a) discuss effective approaches and develop information sharing activities to support efforts to establish a competitive environment that is conducive to the establishment of businesses, facilitates trade and investment between the Parties, and promotes economic integration and development within the free trade area;

(b) explore ways to take advantage of the trade and investment opportunities that this Agreement creates;

(c) provide advice and recommendations to the Commission on ways to further enhance the competitiveness of the Parties' economies, including recommendations aimed at enhancing the participation of SMEs in regional supply chains;

(d) explore ways to promote the development and strengthening of supply chains within the free trade area in accordance with Article 22.3 (Supply Chains); and

(e) engage in other activities as the Parties may decide.

4. The Committee shall meet within one year of the date of entry into force of this Agreement, and thereafter as necessary.

5. In carrying out its functions, the Committee may work with other committees, working groups and any other subsidiary body established under this Agreement. The Committee may also seek advice from, and consider the work of, appropriate experts, such as international donor institutions, enterprises and non governmental organisations.

Article 22.3: Supply Chains

1. The Committee shall explore ways in which this Agreement may be implemented so as to promote the development and strengthening of supply chains in order to integrate production, facilitate trade and reduce the costs of doing business within the free trade area.

2. The Committee shall develop recommendations and promote seminars, workshops or other capacity building activities with appropriate experts, including private sector and international donor organisations, to assist participation by SMEs in supply chains in the free trade area.

3. The Committee shall, as appropriate, work with other committees, working groups and any other subsidiary body established under this Agreement, including through joint meetings, to identify and discuss measures affecting the development and strengthening of supply chains. The Committee shall ensure that it does not duplicate the activities of these other bodies.

4. The Committee shall identify and explore best practices and experiences relevant to the development and strengthening of supply chains between the Parties.

5. The Committee shall commence a review of the extent to which this Agreement has facilitated the development, strengthening and operation of supply chains in the free trade area during the fourth year after the date of entry into force of this Agreement. Unless the Parties agree otherwise, the Committee shall conduct further reviews every five years thereafter.

6. In conducting its review, the Committee shall consider the views of interested persons that a Party has received pursuant to Article 22.4 (Engagement with Interested Persons) and provided to the Committee.

7. No later than two years after the commencement of a review under paragraph 5, the Committee shall submit a report to the Commission containing the Committee's findings and recommendations on ways in which the Parties can promote and strengthen the development of supply chains in the free trade area.

8. Following the Commission's consideration of the report, the Committee shall make the report publicly available, unless the Parties agree otherwise.

Article 22.4: Engagement with Interested Persons

The Committee shall establish mechanisms appropriate to provide continuing opportunities for interested persons of the Parties to provide input on matters relevant to enhancing competitiveness and business facilitation.

Article 22.5: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.

CHAPTER 23

DEVELOPMENT

Article 23.1: General Provisions

1. The Parties affirm their commitment to promote and strengthen an open trade and investment environment that seeks to improve welfare, reduce poverty, raise living standards and create new employment opportunities in support of development.

2. The Parties acknowledge the importance of development in promoting inclusive economic growth, as well as the instrumental role that trade and investment can play in contributing to economic development and prosperity. Inclusive economic growth includes a more broad-based distribution of the benefits of economic growth through the expansion of business and industry, the creation of jobs, and the alleviation of poverty.

3. The Parties acknowledge that economic growth and development contribute to achieving the objectives of this Agreement of promoting regional economic integration.

4. The Parties also acknowledge that effective domestic coordination of trade, investment and development policies can contribute to sustainable economic growth.

5. The Parties recognise the potential for joint development activities between the Parties to reinforce efforts to achieve sustainable development goals.

6. The Parties also recognise that activities carried out under Chapter 21 (Cooperation and Capacity Building) are an important component of joint development activities.

Article 23.2: Promotion of Development

1. The Parties acknowledge the importance of each Party's leadership in implementing development policies, including policies that are designed for its nationals to maximise the use of the opportunities created by this Agreement.

2. The Parties acknowledge that this Agreement has been designed in a manner that takes into account the different levels of economic development of the Parties, including through provisions that support and enable the achievement of national development goals.

3. The Parties further recognise that transparency, good governance and accountability contribute to the effectiveness of development policies.

Article 23.3: Broad-Based Economic Growth

1. The Parties acknowledge that broad-based economic growth reduces poverty, enables sustainable delivery of basic services, and expands opportunities for people to live healthy and productive lives.

2. The Parties recognise that broad-based economic growth promotes peace, stability, democratic institutions, attractive investment opportunities, and effectiveness in addressing regional and global challenges.

3. The Parties also recognise that generating and sustaining broad-based economic growth requires sustained high-level commitment by their governments to effectively and efficiently administer public institutions, invest in public infrastructure, welfare, health and education systems, and foster entrepreneurship and access to economic opportunity.

4. The Parties may enhance broad-based economic growth through policies that take advantage of trade and investment opportunities created by this Agreement in order to contribute to, among other things, sustainable development and the reduction of poverty. These policies may include those related to the promotion of market-based approaches aimed at improving trading conditions and access to finance for vulnerable areas or populations, and SMEs.

Article 23.4: Women and Economic Growth

1. The Parties recognise that enhancing opportunities in their territories for women, including workers and business owners, to participate in the domestic and global economy contributes to economic development. The Parties further recognise the benefit of sharing their diverse experiences in designing, implementing and strengthening programmes to encourage this participation.

2. Accordingly, the Parties shall consider undertaking cooperative activities aimed at enhancing the ability of women, including workers and business owners, to fully access and benefit from the opportunities created by this Agreement. These activities may include providing advice or training, such as through the exchange of officials, and exchanging information and experience on:

(a) programmes aimed at helping women build their skills and capacity, and enhance their access to markets, technology and financing;

(b) developing women's leadership networks; and

Article 23.5: Education, Science and Technology, Research and Innovation

1. The Parties recognise that the promotion and development of education, science and technology, research and innovation can play an important role in accelerating growth, enhancing competitiveness, creating jobs, and expanding trade and investment among the Parties.

2. The Parties further recognise that policies related to education, science and technology, research and innovation can help Parties maximise the benefits derived from this Agreement. Accordingly, Parties may encourage the design of policies in these areas that take into consideration trade and investment opportunities arising from this Agreement, in order to further increase those benefits. Those policies may include initiatives with the private sector, including those aimed at developing relevant expertise and managerial skills, and enhancing enterprises' ability to transform innovations into competitive products and start-up businesses.

Article 23.6: Joint Development Activities

1. The Parties recognise that joint activities between the Parties to promote maximisation of the development benefits derived from this Agreement can reinforce national development strategies, including, where appropriate, through work with bilateral partners, private companies, academic institutions and non

governmental organisations.

2. When mutually agreed, two or more Parties shall endeavour to facilitate joint activities between relevant government, private and multilateral institutions so that the benefits derived from this Agreement might more effectively advance each Party's development goals. These joint activities may include:

(a) discussion between Parties to promote, where appropriate, alignment of Parties' development assistance and finance programmes with national development priorities;

(b) consideration of ways to expand engagement in science, technology and research to foster the application of innovative uses of science and technology, promote development and build capacity;

(c) facilitation of public and private sector partnerships that enable private enterprises, including SMEs, to bring their expertise and resources to cooperative ventures with government agencies in support of development goals; and

(d) involvement of the private sector, including philanthropic organisations and businesses, and non-governmental organisations in activities to support development.

Article 23.7: Committee on Development

1. The Parties hereby establish a Committee on Development (Committee), composed of government representatives of each Party.

2. The Committee shall:

(a) facilitate the exchange of information on Parties' experiences regarding the formulation and implementation of national policies intended to derive the greatest possible benefits from this Agreement;

(b) facilitate the exchange of information on Parties' experiences and lessons learned through joint development activities undertaken under Article 23.6 (Joint Development Activities);

(c) discuss any proposals for future joint development activities in support of development policies related to trade and investment;

(d) invite, as appropriate, international donor institutions, private sector entities, non-governmental organisations or other relevant institutions to assist in the development and implementation of joint development activities;

(e) carry out other functions as the Parties may decide in respect of maximising the development benefits derived from this Agreement; and

(f) consider issues associated with the implementation and operation of this Chapter, with a view towards considering ways the Chapter may enhance the development benefits of this Agreement.

3. The Committee shall meet within one year of the date of entry into force of this Agreement, and thereafter as necessary.

4. In carrying out its functions, the Committee may work with other committees, working groups and any other subsidiary body established under this Agreement.

Article 23.8: Relation to Other Chapters

In the event of any inconsistency between this Chapter and another Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency.

Article 23.9: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.

CHAPTER 24

SMALL AND MEDIUM-SIZED ENTERPRISES

Article 24.1: Information Sharing

1. Each Party shall establish or maintain its own publicly accessible website containing information regarding this Agreement, including:

(a) the text of this Agreement, including all Annexes, tariff schedules and product specific rules of origin;

(b) a summary of this Agreement; and

(i) a description of the provisions in this Agreement that the Party considers to be relevant to SMEs; and

(ii) any additional information that the Party considers useful for SMEs interested in benefitting from the opportunities provided by this Agreement.

2. Each Party shall include in its website links to:

(a) the equivalent websites of the other Parties; and

(b) the websites of its government agencies and other appropriate entities that provide information the Party considers useful to any person interested in trading, investing or doing business in that Party's territory.

3. Subject to each Party's laws and regulations, the information described in paragraph 2(b) may include:

(a) customs regulations and procedures;

(b) regulations and procedures concerning intellectual property rights;

(d) foreign investment regulations;

(e) business registration procedures;

(f) employment regulations; and

(g) taxation information.

When possible, each Party shall endeavour to make the information available in English.

4. Each Party shall regularly review the information and links on the website referred to in paragraphs 1 and 2 to ensure that such information and links are up to-date and accurate.

Article 24.2: Committee on SMEs

1. The Parties hereby establish a Committee on SMEs (Committee), composed of government representatives of each Party.

2. The Committee shall:

(a) identify ways to assist SMEs of the Parties to take advantage of the commercial opportunities under this Agreement;

(b) exchange and discuss each Party's experiences and best practices in supporting and assisting SME exporters with respect to, among other things, training programmes, trade education, trade finance, identifying commercial partners in other Parties and establishing good business credentials;

(c) develop and promote seminars, workshops or other activities to inform SMEs of the benefits available to them under this Agreement;

(d) explore opportunities for capacity building to assist the Parties in developing and enhancing SME export counselling, assistance and training programmes;

(e) recommend additional information that a Party may include on the website referred to in Article 24.1 (Information Sharing);

(f) review and coordinate the Committee's work programme with those of other committees, working groups and any subsidiary body established under this Agreement, as well as those of other relevant international bodies, in order not to duplicate those work programmes and to identify appropriate opportunities for cooperation to improve the ability of SMEs to engage in trade and investment opportunities provided by this Agreement;

(g) facilitate the development of programmes to assist SMEs to participate and integrate effectively into the global supply chain;

(h) exchange information to assist in monitoring the implementation of this Agreement as it relates to SMEs;

(i) submit a report of its activities on a regular basis and make appropriate recommendations to the Commission; and

(j) consider any other matter pertaining to SMEs as the Committee may decide, including any issues raised by SMEs regarding their ability to benefit from this Agreement.

3. The Committee shall meet within one year of the date of entry into force of this Agreement, and thereafter as necessary.

4. The Committee may seek to collaborate with appropriate experts and international donor organisations in carrying out its programmes and activities.

Article 24.3: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.

CHAPTER 25

REGULATORY COHERENCE

Article 25.1: Definitions

For the purposes of this Chapter:

covered regulatory measure means the regulatory measure determined by each Party to be subject to this Chapter in accordance with Article 25.3 (Scope of Covered Regulatory Measures); and

regulatory measure means a measure of general application related to any matter covered by this Agreement adopted by regulatory agencies with which compliance is mandatory.

Article 25.2: General Provisions

1. For the purposes of this Chapter, regulatory coherence refers to the use of good regulatory practices in the process of planning, designing, issuing, implementing and reviewing regulatory measures in order to facilitate achievement of domestic policy objectives, and in efforts across governments to enhance regulatory cooperation in order to further those objectives and promote international trade and investment, economic growth and employment.

2. The Parties affirm the importance of:

(a) sustaining and enhancing the benefits of this Agreement through regulatory coherence in terms of facilitating increased trade in goods and services and increased investment between the Parties;

(b) each Party's sovereign right to identify its regulatory priorities and establish and implement regulatory measures to address these priorities, at the levels that the Party considers appropriate;

(d) taking into account input from interested persons in the development of regulatory measures; and

(e) developing regulatory cooperation and capacity building between the Parties.

Article 25.3: Scope of Covered Regulatory Measures

Each Party shall promptly, and no later than one year after the date of entry into force of this Agreement for that Party, determine and make publicly available the scope of its covered regulatory measures. In determining the scope of covered regulatory measures, each Party should aim to achieve significant coverage.

Article 25.4: Coordination and Review Processes or Mechanisms

1. The Parties recognise that regulatory coherence can be facilitated through domestic mechanisms that increase interagency consultation and coordination associated with processes for developing regulatory measures. Accordingly, each Party shall endeavour to ensure that it has processes or mechanisms to facilitate the effective interagency coordination and review of proposed covered regulatory measures. Each Party should consider establishing and maintaining a national or central coordinating body for this purpose.

2. The Parties recognise that while the processes or mechanisms referred to in paragraph 1 may vary between Parties depending on their respective circumstances (including differences in levels of development and political and institutional structures), they should generally have as overarching characteristics

the ability to:

(a) review proposed covered regulatory measures to determine the extent to which the development of such measures adheres to good regulatory practices, which may include but are not limited to those set out in Article 25.5 (Implementation of Core Good Regulatory Practices), and make recommendations based on that review;

(b) strengthen consultation and coordination among domestic agencies so as to identify potential overlap and duplication and to prevent the creation of inconsistent requirements across agencies;

(d) publicly report on regulatory measures reviewed, any proposals for systemic regulatory improvements, and any updates on changes to the processes and mechanisms referred to in paragraph 1.

Each Party should generally produce documents that include descriptions of those processes or mechanisms and that can be made available to the public.

Article 25.5: Implementation of Core Good Regulatory Practices

1. To assist in designing a measure to best achieve the Party's objective, each Party should generally encourage relevant regulatory agencies, consistent with its laws and regulations, to conduct regulatory impact assessments when developing proposed covered regulatory measures that exceed a threshold of economic impact, or other regulatory impact, where appropriate, as established by the Party. Regulatory impact assessments may encompass a range of procedures to determine possible impacts.

2. Recognising that differences in the Parties' institutional, social, cultural, legal and developmental circumstances may result in specific regulatory approaches, regulatory impact assessments conducted by a Party should, among other things:

(a) assess the need for a regulatory proposal, including a description of the nature and significance of the problem;

(b) examine feasible alternatives, including, to the extent feasible and consistent with laws and regulations, their costs and benefits, such as risks involved as well as distributive impacts, recognising that some costs and benefits are difficult to quantify and monetise;

(c) explain the grounds for concluding that the selected alternative achieves the policy objectives in an efficient manner, including, if appropriate, reference to the costs and benefits and the potential for managing risks; and

(d) rely on the best reasonably obtainable existing information including relevant scientific, technical, economic or other information, within the boundaries of the authorities, mandates and resources of the particular regulatory agency.

3. When conducting regulatory impact assessments, a Party may take into consideration the potential impact of the proposed regulation on SMEs.

4. Each Party should ensure that new covered regulatory measures are plainly written and are clear, concise, well organised and easy to understand, recognising that some measures address technical issues and that relevant expertise may be needed to understand and apply them.

5. Subject to its laws and regulations, each Party should ensure that relevant regulatory agencies provide public access to information on new covered regulatory measures and, where practicable, make this information available online.

6. Each Party should review, at intervals it deems appropriate, its covered regulatory measures to determine whether specific regulatory measures it has implemented should be modified, streamlined, expanded or repealed so as to make the Party's regulatory regime more effective in achieving the Party's policy objectives.

7. Each Party should, in a manner it deems appropriate, and consistent with its laws and regulations, provide annual public notice of any covered regulatory measure that it reasonably expects its regulatory agencies to issue within the following 12-month period.

8. To the extent appropriate and consistent with its law, each Party should encourage its relevant regulatory agencies to consider regulatory measures in other Parties, as well as relevant developments in international, regional and other fora when planning covered regulatory measures.

Article 25.6: Committee on Regulatory Coherence

1. The Parties hereby establish a Committee on Regulatory Coherence (Committee), composed of government representatives of the Parties.

2. The Committee shall consider issues associated with the implementation and operation of this Chapter. The Committee shall also consider identifying future priorities, including potential sectoral initiatives and cooperative activities, involving issues covered by this Chapter and issues related to regulatory coherence covered by other Chapters of this Agreement.

3. In identifying future priorities, the Committee shall take into account the activities of other committees, working groups and any other subsidiary body established under this Agreement and shall coordinate with them in order to avoid duplication of activities.

4. The Committee shall ensure that its work on regulatory cooperation offers value in addition to initiatives underway in other relevant fora and avoids undermining or duplicating such efforts.

5. Each Party shall designate and notify a contact point to provide information, on request by another Party, regarding the implementation of this Chapter in accordance with Article 27.5 (Contact Points).

6. The Committee shall meet within one year of the date of entry into force of this Agreement, and thereafter as necessary.

7. At least once every five years after the date of entry into force of this Agreement, the Committee shall consider developments in the area of good regulatory practices and in best practices in maintaining processes or mechanisms referred to in Article 25.4.1 (Coordination and Review Processes or Mechanisms), as well as the Parties' experiences in implementing this Chapter with a view towards considering whether to make recommendations to the Commission for improving the provisions of this Chapter so as to further enhance the benefits of this Agreement.

Article 25.7: Cooperation

1. The Parties shall cooperate in order to facilitate the implementation of this Chapter and to maximise the benefits arising from it. Cooperation activities shall take into consideration each Party's needs, and may include:

(a) information exchanges, dialogues or meetings with other Parties;

(b) information exchanges, dialogues or meetings with interested persons, including with SMEs, of other Parties;

(d) strengthening cooperation and other relevant activities between regulatory agencies; and

(e) other activities that Parties may agree.

2. The Parties further recognise that cooperation between Parties on regulatory matters can be enhanced through, among other things, ensuring that each Party's regulatory measures are centrally available.

Article 25.8: Engagement with Interested Persons

The Committee shall establish appropriate mechanisms to provide continuing opportunities for interested persons of the Parties to provide input on matters relevant to enhancing regulatory coherence.

Article 25.9: Notification of Implementation

1. For the purposes of transparency, and to serve as a basis for cooperation and capacity building activities under this Chapter, each Party shall submit a notification of implementation to the Committee through the contact points designated pursuant to Article 27.5 (Contact Points) within two years of the date of entry into force of this Agreement for that Party and at least once every four

years thereafter.

2. In its initial notification, each Party shall describe the steps that it has taken since the date of entry into force of this Agreement for that Party, and the steps that it plans to take to implement this Chapter, including those to:

(a) establish processes or mechanisms to facilitate effective interagency coordination and review of proposed covered regulatory measures in accordance with Article 25.4 (Coordination and Review Processes or Mechanisms);

(b) encourage relevant regulatory agencies to conduct regulatory impact assessments in accordance with Article 25.5.1 (Implementation of Core Good Regulatory Practices) and Article 25.5.2;

(c) ensure that covered regulatory measures are written and made available in accordance with Article 25.5.4 (Implementation of Core Good Regulatory Practices) and Article 25.5.5;

(d) review its covered regulatory measures in accordance with Article 25.5.6 (Implementation of Core Good Regulatory Practices); and

(e) provide information to the public in its annual notice of prospective covered regulatory measures in accordance with Article 25.5.7 (Implementation of Core Regulatory Practices).

3. In subsequent notifications, each Party shall describe the steps, including those set out in paragraph 2, that it has taken since the previous notification, and those that it plans to take to implement this Chapter, and to improve its adherence to it.

4. In its consideration of issues associated with the implementation and operation of this Chapter, the Committee may review notifications made by a Party pursuant to paragraph 1. During that review, Parties may ask questions or discuss specific aspects of that Party's notification. The Committee may use its review and discussion of a notification as a basis for identifying opportunities for assistance and cooperative activities to provide assistance in accordance with Article 25.7 (Cooperation).

Article 25.10: Relation to Other Chapters

In the event of any inconsistency between this Chapter and another Chapter of this Agreement, the other Chapter shall prevail to the extent of the inconsistency.

Article 25.11: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Chapter.

CHAPTER 26

TRANSPARENCY AND ANTI-CORRUPTION

Section A: Definitions

Article 26.1: Definitions

For the purposes of this Chapter:

act or refrain from acting in relation to the performance of official duties includes any use of the public official's position, whether or not within the official's authorised competence;

administrative ruling of general application means an administrative ruling or interpretation that applies to all persons and fact situations that fall generally within the ambit of that administrative ruling or interpretation and that establishes a norm of conduct, but does not include:

(a) a determination or ruling made in an administrative or quasi judicial proceeding that applies to a particular person, good or service of another Party in a specific case; or

(b) a ruling that adjudicates with respect to a particular act or practice;

foreign public official means any person holding a legislative, executive, administrative or judicial office of a foreign country, at any level of government, whether appointed or elected, whether permanent or temporary, whether paid or unpaid, irrespective of that person's seniority; and any person exercising a public function for a foreign country, at any level of government, including for a public agency or public enterprise;

official of a public international organisation means an international civil servant or any person who is authorised by a public international organisation to act on its behalf; and

public official means:

(a) any person holding a legislative, executive, administrative or judicial office of a Party, whether appointed or elected, whether permanent or temporary, whether paid or unpaid, irrespective of that person's seniority;

(b) any other person who performs a public function for a Party, including for a public agency or public enterprise, or provides a public service, as defined under the Party's law and as applied in the pertinent area of that Party's law; or

Section B: Transparency

Article 26.2: Publication

1. Each Party shall ensure that its laws, regulations, procedures and administrative rulings of general application with respect to any matter covered by this Agreement are promptly published or otherwise made available in a manner that enables interested persons and Parties to become acquainted with them.

2. To the extent possible, each Party shall:

(a) publish in advance any measure referred to in paragraph 1 that it proposes to adopt; and

(b) provide interested persons and other Parties with a reasonable opportunity to comment on those proposed measures.

3. To the extent possible, when introducing or changing the laws, regulations or procedures referred to in paragraph 1, each Party shall endeavour to provide a reasonable period between the date when those laws, regulations or procedures, proposed or final in accordance with its legal system, are made publicly available and the date when they enter into force.

4. With respect to a proposed regulation2of general application of a Party's central level of government respecting any matter covered by this Agreement that is likely to affect trade or investment between the Parties and that is published in accordance with paragraph 2(a), each Party shall:

(a) publish the proposed regulation in an official journal, or on an official website, preferably online and consolidated into a single portal;

(b) endeavour to publish the proposed regulation:

(i) no less than 60 days in advance of the date on which comments are due; or

(ii) within another period in advance of the date on which comments are due that provides sufficient time for an interested person to evaluate the proposed regulation, and formulate and submit comments;

(c) to the extent possible, include in the publication under subparagraph (a) an explanation of the purpose of, and rationale for, the proposed regulation; and

(d) consider comments received during the comment period, and is encouraged to explain any significant modifications made to the proposed regulation, preferably on an official website or in an online journal.

5. Each Party shall, with respect to a regulation of general application adopted by its central level of government respecting any matter covered by this Agreement that is published in accordance with paragraph 1:

(a) promptly publish the regulation on a single official website or in an official journal of national circulation; and

(b) if appropriate, include with the publication an explanation of the purpose of and rationale for the regulation.

Article 26.3: Administrative Proceedings

With a view to administering in a consistent, impartial and reasonable manner all measures of general application with respect to any matter covered by this Agreement, each Party shall ensure in its administrative proceedings applying measures referred to in Article 26.2.1 (Publication) to a particular person, good or service of another Party in specific cases that:

(a) whenever possible, a person of another Party that is directly affected by a proceeding is provided with reasonable notice, in accordance with domestic procedures, of when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority under which the proceeding is initiated and a general description of any issue in question;

(b) a person of another Party that is directly affected by a proceeding is afforded a reasonable opportunity to present facts and arguments in support of that person's position prior to any final administrative action, when time, the nature of the proceeding and the public interest permit; and

Article 26.4: Review and Appeal

1. Each Party shall establish or maintain judicial, quasi-judicial or administrative tribunals or procedures for the purpose of the prompt review and, if warranted, correction of a final administrative action with respect to any matter covered by this Agreement. Those tribunals shall be impartial and independent of the office or authority entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter.

2. Each Party shall ensure that, with respect to the tribunals or procedures referred to in paragraph 1, the parties to a proceeding are provided with the right to:

(a) a reasonable opportunity to support or defend their respective positions; and

(b) a decision based on the evidence and submissions of record or, where required by its law, the record compiled by the relevant authority.

3. Each Party shall ensure, subject to appeal or further review as provided for in its domestic law, that the decision referred to in paragraph 2(b) shall be implemented by, and shall govern the practice of, the office or authority with respect to the administrative action at issue.

Article 26.5: Provision of Information

1. If a Party considers that any proposed or actual measure may materially affect the operation of this Agreement or otherwise substantially affect another Party's interests under this Agreement, it shall, to the extent possible, inform that other Party of the proposed or actual measure.

2. On request of another Party, a Party shall promptly provide information and respond to questions pertaining to any proposed or actual measure that the requesting Party considers may affect the operation of this Agreement, whether or not the requesting Party has been previously informed of that measure.

3. A Party may convey any request or provide information under this Article to the other Parties through their contact points.

4. Any information provided under this Article shall be without prejudice as to whether the measure in question is consistent with this Agreement.

Section C: Anti-Corruption

Article 26.6: Scope

1. The Parties affirm their resolve to eliminate bribery and corruption in international trade and investment. Recognising the need to build integrity within both the public and private sectors and that each sector has complementary responsibilities in this regard, the Parties affirm their adherence to the APEC Conduct Principles for Public Officials, July 2007, and encourage observance of the APEC Code of Conduct for Business: Business Integrity and Transparency Principles for the Private Sector, September 2007.

2. The scope of this Section is limited to measures to eliminate bribery and corruption with respect to any matter covered by this Agreement.

3. The Parties recognise that the description of offences adopted or maintained in accordance with this Section, and of the applicable legal defences or legal principles controlling the lawfulness of conduct, is reserved to each Party's law, and that those offences shall be prosecuted and punished in accordance with each Party's law.

4. Each Party shall ratify or accede to the United Nations Convention against Corruption, done at New York on October 31, 2003 (UNCAC).

Article 26.7: Measures to Combat Corruption

1. Each Party shall adopt or maintain legislative and other measures as may be necessary to establish as criminal offences under its law, in matters that affect international trade or investment, when committed intentionally, by any person subject to its jurisdiction:4

(a) the promise, offering or giving to a public official, directly or indirectly, of an undue advantage, for the official or another person or entity, in order that the official act or refrain from acting in relation to the performance of or the exercise of his or her official duties;

(b) the solicitation or acceptance by a public official, directly or indirectly, of an undue advantage, for the official or another person or entity, in order that the official act or refrain from acting in relation to the performance of or the exercise of his or her official duties;

(c) the promise, offering or giving to a foreign public official or an official of a public international organisation, directly or indirectly, of an undue advantage,5for the official or another person or entity, in order that the official act or refrain from acting in relation to the performance of or the exercise of his or her official duties, in order to obtain or retain business or other undue advantage in relation to the conduct of international business; and

(d) the aiding or abetting, or conspiracy6in the commission of any of the offences described in subparagraphs (a) through (c).

2. Each Party shall make the commission of an offence described in paragraph 1 or 5 liable to sanctions that take into account the gravity of that offence.

3. Each Party shall adopt or maintain measures as may be necessary, consistent with its legal principles, to establish the liability of legal persons for offences described in paragraph 1 or 5. In particular, each Party shall ensure that legal persons held liable for offences described in paragraph 1 or 5 are subject to effective, proportionate and dissuasive criminal or non-criminal sanctions, which include monetary sanctions.

4. No Party shall allow a person subject to its jurisdiction to deduct from taxes expenses incurred in connection with the commission of an offence described in paragraph 1.

5. In order to prevent corruption, each Party shall adopt or maintain measures as may be necessary, in accordance with its laws and regulations, regarding the maintenance of books and records, financial statement disclosures, and accounting and auditing standards, to prohibit the following acts carried out for the purpose of committing any of the offences described in paragraph 1:

(a) the establishment of off-the-books accounts;

(b) the making of off-the-books or inadequately identified transactions;

(d) the entry of liabilities with incorrect identification of their objects;

(e) the use of false documents; and

(f) the intentional destruction of bookkeeping documents earlier than foreseen by the law.7

6. Each Party shall consider adopting or maintaining measures to protect, against any unjustified treatment, any person who, in good faith and on reasonable grounds, reports to the competent authorities any facts concerning offences described in paragraph 1 or 5.

Article 26.8: Promoting Integrity among Public Officials

1. To fight corruption in matters that affect trade and investment, each Party should promote, among other things, integrity, honesty and responsibility among its public officials. To this end, each Party shall endeavour, in accordance with the fundamental principles of its legal system, to adopt or maintain:

(a) measures to provide adequate procedures for the selection and training of individuals for public positions considered especially vulnerable to corruption, and the rotation, if appropriate, of those individuals to other positions;

(b) measures to promote transparency in the behaviour of public officials in the exercise of public functions;

(c) appropriate policies and procedures to identify and manage actual or potential conflicts of interest of public officials;

(d) measures that require senior and other appropriate public officials to make declarations to appropriate authorities regarding, among other things, their outside activities, employment, investments, assets and substantial gifts or benefits from which a conflict of interest may result with respect to their functions as public officials; and

(e) measures to facilitate reporting by public officials of acts of corruption to appropriate authorities, if those acts come to their notice in the performance of their functions.

2. Each Party shall endeavour to adopt or maintain codes or standards of conduct for the correct, honourable and proper performance of public functions, and measures providing for disciplinary or other measures, if warranted, against public officials who violate the codes or standards established in accordance with this paragraph.

3. Each Party, to the extent consistent with the fundamental principles of its legal system, shall consider establishing procedures through which a public official accused of an offence described in Article 26.7.1 (Measures to Combat Corruption) may, where appropriate, be removed, suspended or reassigned by the appropriate authority, bearing in mind respect for the principle of the presumption of innocence.

4. Each Party shall, in accordance with the fundamental principles of its legal system and without prejudice to judicial independence, adopt or maintain measures to strengthen integrity, and to prevent opportunities for corruption, among members of the judiciary in matters that affect international trade or investment. These measures may include rules with respect to the conduct of members of the judiciary.

Article 26.9: Application and Enforcement of Anti-Corruption Laws

1. In accordance with the fundamental principles of its legal system, no Party shall fail to effectively enforce its laws or other measures adopted or maintained to comply with Article 26.7.1 (Measures to Combat Corruption) through a sustained or recurring course of action or inaction, after the date of entry into force of this Agreement for that Party, as an encouragement for trade and investment.

2. In accordance with the fundamental principles of its legal system, each Party retains the right for its law enforcement, prosecutorial and judicial authorities to exercise their discretion with respect to the enforcement of its anti corruption laws. Each Party retains the right to take bona fide decisions with regard to the allocation of its resources.

3. The Parties affirm their commitments under applicable international agreements or arrangements to cooperate with each other, consistent with their respective legal and administrative systems, to enhance the effectiveness of law enforcement actions to combat the offences described in Article 26.7.1 (Measures to Combat Corruption).

Article 26.10: Participation of Private Sector and Society

1. Each Party shall take appropriate measures, within its means and in accordance with fundamental principles of its legal system, to promote the active participation of individuals and groups outside the public sector, such as enterprises, civil society, non-governmental organisations and community-based organisations, in the prevention of and the fight against corruption in matters affecting international trade or investment, and to raise public awareness regarding the existence, causes and gravity of, and the threat posed by, corruption. To this end, a Party may:

(a) undertake public information activities and public education programmes that contribute to non-tolerance of corruption;

(b) adopt or maintain measures to encourage professional associations and other non-governmental organisations, if appropriate, in their efforts to encourage and assist enterprises, in particular SMEs, in developing internal controls, ethics and compliance programmes or measures for preventing and detecting bribery and corruption in international trade and investment;

(c) adopt or maintain measures to encourage company management to make statements in their annual reports or otherwise publicly disclose their internal controls, ethics and compliance programmes or measures, including those that contribute to preventing and detecting bribery and corruption in international trade and investment; and

(d) adopt or maintain measures that respect, promote and protect the freedom to seek, receive, publish and disseminate information concerning corruption.

2. Each Party shall endeavour to encourage private enterprises, taking into account their structure and size, to:

(a) develop and adopt sufficient internal auditing controls to assist in preventing and detecting acts of corruption in matters affecting international trade or investment; and

(b) ensure that their accounts and required financial statements are subject to appropriate auditing and certification procedures.

3. Each Party shall take appropriate measures to ensure that its relevant anti corruption bodies are known to the public and shall provide access to those bodies, if appropriate, for the reporting, including anonymously, of any incident that may be considered to constitute an offence described in Article 26.7.1 (Measures to Combat Corruption).

Article 26.11: Relation to Other Agreements

Subject to Article 26.6.4 (Scope), nothing in this Agreement shall affect the rights and obligations of the Parties under UNCAC, the United Nations Convention against Transnational Organized Crime, done at New York on November 15, 2000, the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, with its Annex, done at Paris on November 21, 1997, or the Inter-American Convention Against Corruption, done at Caracas on March 29, 1996.

Article 26.12: Dispute Settlement

1. Chapter 28 (Dispute Settlement), as modified by this Article, shall apply to this Section.

2. A Party may only have recourse to the procedures set out in this Article and Chapter 28 (Dispute Settlement) if it considers that a measure of another Party is inconsistent with an obligation under this Section, or that another Party has otherwise failed to carry out an obligation under this Section, in a manner affecting trade or investment between Parties.

3. No Party shall have recourse to dispute settlement under this Article or Chapter 28 (Dispute Settlement) for any matter arising under Article 26.9 (Application and Enforcement of Anti-Corruption Laws).

4. Article 28.5 (Consultations) shall apply to consultations under this Section, with the following modifications:

(a) a Party other than a consulting Party may make a request in writing to the consulting Parties to participate in the consultations, no later than seven days after the date of circulation of the request for consultations, if it considers that its trade or investment is affected by the matter at issue. That Party shall include in its request an explanation of how its trade or investment is affected by the matter at issue. That Party may participate in consultations if the consulting Parties agree; and

(b) the consulting Parties shall involve officials of their relevant anti corruption authorities in the consultations.

5. The consulting Parties shall make every effort to find a mutually satisfactory solution to the matter, which may include appropriate cooperative activities or a work plan.

ANNEX 26-A

TRANSPARENCY AND PROCEDURAL FAIRNESS FOR PHARMACEUTICAL

PRODUCTS AND MEDICAL DEVICES

Article 1: Definitions

For the purposes of this Annex:

national health care authority means, with respect to a Party listed in the Appendix to this Annex, the relevant entity or entities specified therein, and with respect to any other Party, an entity that is part of or has been established by a Party's central level of government to operate a national health care programme;

and

national health care programme means a health care programme in which a national health care authority makes the determinations or recommendations regarding the listing of pharmaceutical products or medical devices for reimbursement, or regarding the setting of the amount of such reimbursement.

Article 2: Principles

The Parties are committed to facilitating high-quality health care and continued improvements in public health for their nationals, including patients and the public. In pursuing these objectives, the Parties acknowledge the importance of the following principles:

(a) the importance of protecting and promoting public health and the important role played by pharmaceutical products and medical devices in delivering high-quality health care;

(b) the importance of research and development, including innovation associated with research and development, related to pharmaceutical products and medical devices;

(c) the need to promote timely and affordable access to pharmaceutical products and medical devices, through transparent, impartial, expeditious and accountable procedures, without prejudice to a Party's right to apply appropriate standards of quality, safety and efficacy; and

(d) the need to recognise the value of pharmaceutical products and medical devices through the operation of competitive markets or by adopting or maintaining procedures that appropriately value the objectively demonstrated therapeutic significance of a pharmaceutical product or medical device.

Article 3: Procedural Fairness

To the extent that a Party's national health care authorities operate or maintain procedures for listing new pharmaceutical products or medical devices for reimbursement purposes, or setting the amount of such reimbursement, under national health care programmes operated by the national health care authorities, the Party shall:

(a) ensure that consideration of all formal and duly formulated proposals for such listing of pharmaceutical products or medical devices for reimbursement is completed within a specified period of time;

(b) disclose procedural rules, methodologies, principles and guidelines used to assess such proposals;

(c) afford applicants 14 and, if appropriate, the public, timely opportunities to provide comments at relevant points in the decision-making process;

(d) provide applicants with written information sufficient to comprehend the basis for recommendations or determinations regarding the listing of new pharmaceutical products or medical devices for reimbursement by national health care authorities;

(e) make available:

(i) an independent review process; or

(ii) an internal review process, such as by the same expert or group of experts that made the recommendation or determination, provided that the review process includes, at a minimum, a substantive reconsideration of the application,15 and that may be invoked at the request of an applicant directly affected by a recommendation or determination by a Party's national health care authorities not to list a pharmaceutical product or a medical device for reimbursement; and

(f) provide written information to the public regarding recommendations or determinations, while protecting information considered to be confidential under the Party's law.

Article 4: Dissemination of Information to Health Professionals and Consumers

As is permitted to be disseminated under the Party's laws, regulations and procedures, each Party shall permit a pharmaceutical product manufacturer to disseminate to health professionals and consumers through the manufacturer's website registered in the territory of the Party, and on other websites registered in the territory of the Party linked to that site, truthful and not misleading information regarding its pharmaceutical products that are approved for marketing in the Party's territory. A Party may require that the information includes a balance of risks and benefits and encompasses all indications for which the Party's competent regulatory authorities have approved the marketing of the pharmaceutical product.

Article 5: Consultation

1. To facilitate dialogue and mutual understanding of issues relating to this Annex, each Party shall give sympathetic consideration to and shall afford adequate opportunity for consultation regarding a written request by another Party to consult on any matter related to this Annex. The consultations shall take place within three months of the delivery of the request, except in exceptional circumstances or unless the consulting Parties agree otherwise.17

2. Consultations shall involve officials responsible for the oversight of the national health care authority or officials from each Party responsible for national health care programmes and other appropriate government officials.

Article 6: Non-Application of Dispute Settlement

No Party shall have recourse to dispute settlement under Chapter 28 (Dispute Settlement) for any matter arising under this Annex.

APPENDIX TO ANNEX 26-A

PARTY-SPECIFIC DEFINITIONS

Further to the definition of national healthcare authorities in Article 1, national health care authorities means:

(a) For Australia, the Pharmaceutical Benefits Advisory Committee (PBAC), with respect to PBAC's role in making determinations in relation to the listing of pharmaceutical products for reimbursement under the Pharmaceutical Benefits Scheme.

(b) For Brunei Darussalam, the Ministry of Health. For greater certainty, Brunei Darussalam does not currently operate a national health care programme within the scope of this Annex.

(c) For Canada, the Federal Drug Benefits Committee. For greater certainty, Canada does not currently operate a national health care programme within the scope of this Annex.

(d) For Chile, the Undersecretary of Public Health. For greater certainty, Chile does not currently operate a national health care programme within the scope of this Annex.

(e) For Japan, the Central Social Insurance Medical Council with respect to its role in making recommendations in relation to the listing or setting of the amount of reimbursement for new pharmaceutical products.

(f) For Malaysia, the Ministry of Health. For greater certainty, Malaysia does not currently operate a national health care programme within the scope of this Annex.

(g) For New Zealand, the Pharmaceutical Management Agency (PHARMAC), with respect to PHARMAC's role in the listing of a new pharmaceutical18 for reimbursement on the Pharmaceutical Schedule, in relation to formal and duly formulated applications by suppliers in accordance with the Guidelines for Funding Applications to PHARMAC.

(h) For Peru, the Viceministry of Public Health. For greater certainty, Peru does not currently operate a national health care programme within the scope of this Annex.

(i) For Singapore, the Drug Advisory Committee (DAC) of the Ministry of Health with respect to the DAC's role in the listing of pharmaceutical products. For greater certainty, Singapore does not currently operate a national health care programme within the scope of this Annex.

(j) For the United States, the Centers for Medicare & Medicaid Services (CMS), with respect to CMS's role in making Medicare national coverage determinations.

(k) For Viet Nam, the Ministry of Health. For greater certainty, Vie Nam does not currently operate a national health care programme within the scope of this Annex.

CHAPTER 27

ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS

Article 27.1: Establishment of the Trans-Pacific Partnership Commission

The Parties hereby establish a Trans-Pacific Partnership Commission (Commission), composed of government representatives of each Party at the level of Ministers or senior officials. Each Party shall be responsible for the composition of its delegation.

Article 27.2: Functions of the Commission

1. The Commission shall:

(a) consider any matter relating to the implementation or operation of this Agreement;

(b) review, within three years of the date of entry into force of this Agreement and at least every five years thereafter, the economic relationship and partnership among the Parties;

(d) supervise the work of all committees, working groups and any other subsidiary bodies established under this Agreement;

(e) consider ways to further enhance trade and investment between the Parties;

(f) establish the Rules of Procedure referred to in Article 28.13 (Rules of Procedure for Panels), and, where appropriate, amend those Rules;

(g) review the roster of panel chairs established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) every three years and, when appropriate, constitute a new roster; and

(h) determine whether this Agreement may enter into force for an original signatory notifying pursuant to Article 30.5.4 (Entry into Force).

2. The Commission may:

(a) establish, refer matters to, or consider matters raised by, any ad hoc or standing committee, working group or any other subsidiary body;

(b) merge or dissolve any committees, working groups or other subsidiary bodies established under this Agreement in order to improve the functioning of this Agreement;

(c) consider and adopt, subject to completion of any necessary legal procedures by each Party, a modification to this Agreement of:

(i) the Schedules to Annex 2-D (Tariff Commitments), by accelerating tariff elimination;

(ii) the rules of origin established in Annex 3-D (Product Specific Rules of Origin) and Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin); or

(iii) the lists of entities, covered goods and services, and thresholds contained in each Party's Annex to Chapter 15 (Government Procurement);

(d) develop arrangements for implementing this Agreement;

(e) seek to resolve differences or disputes that may arise regarding the interpretation or application of this Agreement;

(f) issue interpretations of the provisions of this Agreement;

(g) seek the advice of non-governmental persons or groups on any matter falling within the Commission's functions; and

(h) take any other action as the Parties may agree.

3. Pursuant to paragraph 1(b), the Commission shall review the operation of this Agreement with a view to updating and enhancing this Agreement, through negotiations, as appropriate, to ensure that the disciplines contained in this Agreement remain relevant to the trade and investment issues and challenges confronting the Parties.

4. In conducting a review pursuant to paragraph 3, the Commission shall take into account:

(a) the work of all committees, working groups and any other subsidiary bodies established under this Agreement;

(b) relevant developments in international fora; and

Article 27.3: Decision-Making

1. The Commission and all subsidiary bodies established under this Agreement shall take all decisions by consensus, except as otherwise provided in this Agreement, or as otherwise decided by the Parties.2 Except as otherwise provided in this Agreement, the Commission or any subsidiary body shall be deemed to have taken a decision by consensus if no Party present at any meeting when a decision is taken objects to the proposed decision.

2. For the purposes of Article 27.2.2(f) (Functions of the Commission), a decision of the Commission shall be taken by agreement of all Parties. A decision shall be deemed to be reached if a Party which does not indicate agreement when the Commission considers the issue does not object in writing to the interpretation considered by the Commission within five days of that consideration.

Article 27.4: Rules of Procedure of the Commission

1. The Commission shall meet within one year of the date of entry into force of this Agreement and thereafter as the Parties may decide, including as necessary to fulfil its functions under Article 27.2 (Functions of the Commission). Meetings of the Commission shall be chaired successively by each Party.

2. The Party chairing a session of the Commission shall provide any necessary administrative support for such session, and shall notify the other Parties of any decision of the Commission.

3. Except as otherwise provided in this Agreement, the Commission and any subsidiary body established under this Agreement shall carry out its work through whatever means are appropriate, which may include electronic mail or videoconferencing.

4. The Commission and any subsidiary body established under this Agreement may establish rules of procedures for the conduct of its work.

Article 27.5: Contact Points

1. Each Party shall designate an overall contact point to facilitate communications between the Parties on any matter covered by this Agreement, as well as other contact points as required by this Agreement.

2. Unless otherwise provided in this Agreement, each Party shall notify the other Parties in writing of its designated contact points no later than 60 days after the date of entry into force of this Agreement for that Party. A Party shall notify any Party for which this Agreement enters into force at a later date of its designated contact points, no later than 30 days after the date on which the other Party has notified its designated contact points.

Article 27.6: Administration of Dispute Settlement Proceedings

1. Each Party shall:

(a) designate an office to provide administrative assistance to a panel established under Chapter 28 (Dispute Settlement) for a proceeding in which it is a disputing Party and to perform such other related functions as the Commission may direct; and

(b) notify the other Parties of the location of its designated office.

2. Each Party shall be responsible for the operation and costs of its designated office.

Article 27.7: Reporting in relation to Party-specific Transition Periods

1. At each regular meeting of the Commission, any Party which has a Party specific transition period for any obligation under this Agreement shall report on its plans for and progress towards implementing the obligation.

2. In addition, any such Party shall provide a written report to the Commission on its plans for and progress towards implementing each such obligation as follows:

(a) for any transition period of three years or less, the Party shall provide a written report six months before the expiration of the transition period; and

(b) for any transition period of more than three years, the Party shall provide a yearly written report on the anniversary date of entry into force of this Agreement for it, beginning on the third anniversary, and a written report six months before the expiration of the transition period.

3. Any Party may request additional information regarding another Party's progress towards implementing the obligation. The reporting Party shall promptly reply to those requests.

4. No later than the date on which a transition period expires, a Party with a Party-specific transition period shall provide written notification to the other Parties of what measures it has taken to implement the obligation for which it has a transition period.

5. If a Party fails to provide the notification referred to in paragraph 4, the matter shall be automatically placed on the agenda for the next regular meeting of the Commission. In addition, any Party may request that the Commission meet promptly to discuss that matter.

CHAPTER 28

DISPUTE SETTLEMENT

Section A: Dispute Settlement

Article 28.1: Definitions

For the purposes of this Chapter:

complaining Party means a Party that requests the establishment of a panel under Article 28.7.1 (Establishment of a Panel);

consulting Party means a Party that requests consultations under Article 28.5.1 (Consultations) or the Party to which the request for consultations is made;

disputing Party means a complaining Party or a responding Party; panel means a panel established under Article 28.7 (Establishment of a Panel);

perishable goods means perishable agricultural and fish goods classified in HS Chapters 1 through 24;

responding Party means a Party that has been complained against under Article 28.7 (Establishment of a Panel);

Rules of Procedure means the rules referred to in Article 28.13 (Rules of Procedure for Panels) and established in accordance with Article 27.2.1(f) (Functions of the Commission); and

third Party means a Party, other than a disputing Party, that delivers a written notice in accordance with Article 28.14 (Third Party Participation).

Article 28.2: Cooperation

The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation or application.

Article 28.3: Scope

1. Unless otherwise provided in this Agreement, the dispute settlement provisions of this Chapter shall apply:

(a) with respect to the avoidance or settlement of all disputes between the Parties regarding the interpretation or application of this Agreement;

(b) when a Party considers that an actual or proposed measure of another Party is or would be inconsistent with an obligation of this Agreement or that another Party has otherwise failed to carry out an obligation under this Agreement; or

(c) when a Party considers that a benefit it could reasonably have expected to accrue to it under Chapter 2 (National Treatment and Market Access for Goods), Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Textile and Apparel Goods), Chapter 5 (Customs Administration and Trade Facilitation), Chapter 8 (Technical Barriers to Trade), Chapter 10 (Cross-Border Trade in Services) or Chapter 15 (Government Procurement), is being nullified or impaired as a result of the application of a measure of another Party that is not inconsistent with this Agreement.

2. No later than six months after the effective date that Members of the WTO have the right to initiate non-violation nullification or impairment complaints under Article 64 of the TRIPS Agreement, the Parties shall consider whether to amend paragraph 1(c) to include Chapter 18 (Intellectual Property).

3. An instrument entered into by two or more Parties in connection with the conclusion of this Agreement:

(a) does not constitute an instrument related to this Agreement within the meaning of paragraph 2(b) of Article 31 of the Vienna Convention on the Law of Treaties, done at Vienna on May 23, 1969 and shall not affect the rights and obligations under this Agreement of Parties which are not party to the instrument; and

(b) may be subject to the dispute settlement procedures under this Chapter for any matter arising under the instrument if that instrument so provides.

Article 28.4: Choice of Forum

1. If a dispute regarding any matter arises under this Agreement and under another international trade agreement to which the disputing Parties are party, including the WTO Agreement, the complaining Party may select the forum in which to settle the dispute.

2. Once a complaining Party has requested the establishment of, or referred a matter to, a panel or other tribunal under an agreement referred to in paragraph 1, the forum selected shall be used to the exclusion of other fora.

Article 28.5: Consultations

1. Any Party may request consultations with any other Party with respect to any matter described in Article 28.3 (Scope). The Party making the request for consultations shall do so in writing, and shall set out the reasons for the request, including identification of the actual or proposed measure1or other matter at issue and an indication of the legal basis for the complaint. The requesting Party shall circulate the request concurrently to the other Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

2. The Party to which a request for consultations is made shall, unless the consulting Parties agree otherwise, reply in writing to the request no later than seven days after the date of its receipt of the request.2That Party shall circulate its reply concurrently to the other Parties through the overall contact points and enter into consultations in good faith.

3. A Party other than a consulting Party that considers it has a substantial interest in the matter may participate in the consultations by notifying the other Parties in writing no later than seven days after the date of circulation of the request for consultations. The Party shall include in its notice an explanation of its substantial interest in the matter.

4. Unless the consulting Parties agree otherwise, they shall enter into consultations no later than:

(a) 15 days after the date of receipt of the request for matters concerning perishable goods; or

(b) 30 days after the date of receipt of the request for all other matters.

5. Consultations may be held in person or by any technological means available to the consulting Parties. If the consultations are held in person, they shall be held in the capital of the Party to which the request for consultations was made, unless the consulting Parties agree otherwise.

6. The consulting Parties shall make every attempt to reach a mutually satisfactory resolution of the matter through consultations under this Article. To this end:

(a) each consulting Party shall provide sufficient information to enable a full examination of how the actual or proposed measure might affect the operation or application of this Agreement; and

(b) a Party that participates in the consultations shall treat any information exchanged in the course of the consultations that is designated as confidential on the same basis as the Party providing the information.

7. In consultations under this Article, a consulting Party may request that another consulting Party make available personnel of its government agencies or other regulatory bodies who have expertise in the matter at issue.

8. Consultations shall be confidential and without prejudice to the rights of any Party in any other proceedings.

Article 28.6: Good Offices, Conciliation and Mediation

1. Parties may at any time agree to voluntarily undertake an alternative method of dispute resolution, such as good offices, conciliation or mediation.

2. Proceedings that involve good offices, conciliation or mediation shall be confidential and without prejudice to the rights of the Parties in any other proceedings.

3. Parties participating in proceedings under this Article may suspend or terminate those proceedings at any time.

4. If the disputing Parties agree, good offices, conciliation or mediation may continue while the dispute proceeds for resolution before a panel established under Article 28.7 (Establishment of a Panel).

Article 28.7: Establishment of a Panel

1. A Party that requested consultations under Article 28.5.1 (Consultations) may request, by means of a written notice addressed to the responding Party, the establishment of a panel if the consulting Parties fail to resolve the matter within:

(a) a period of 60 days after the date of receipt of the request for consultations under Article 28.5.1 (Consultations);

(b) a period of 30 days after the date of receipt of the request for consultations under Article 28.5.1 (Consultations) in a matter regarding perishable goods; or

2. The complaining Party shall circulate the request concurrently to all Parties through the overall contact points designated under Article 27.5.1 (Contact Points).

3. The complaining Party shall include in the request to establish a panel an identification of the measure or other matter at issue and a brief summary of the legal basis of the complaint sufficient to present the problem clearly.

4. A panel shall be established upon delivery of the request.

5. Unless the disputing Parties agree otherwise, the panel shall be composed in a manner consistent with this Chapter and the Rules of Procedure.

6. If a panel has been established regarding a matter and another Party requests the establishment of a panel regarding the same matter, a single panel should be established to examine those complaints whenever feasible.

7. A panel shall not be established to review a proposed measure.

Article 28.8: Terms of Reference

1. Unless the disputing Parties agree otherwise no later than 20 days after the date of delivery of the request for the establishment of a panel, the terms of reference shall be to:

(a) examine, in the light of the relevant provisions of this Agreement, the matter referred to in the request for the establishment of a panel under Article 28.7.1 (Establishment of a Panel); and

(b) make findings and determinations, and any jointly requested recommendations, together with its reasons therefor, as provided for in Article 28.17.4 (Initial Report).

2. If, in its request for the establishment of a panel, a complaining Party claims that a measure nullifies or impairs benefits within the meaning of Article 28.3.1(c) (Scope), the terms of reference shall so indicate.

Article 28.9: Composition of Panels

1. A panel shall be composed of three members.

2. Unless the disputing Parties agree otherwise, they shall apply the following procedures to compose a panel:

(a) Within a period of 20 days after the date of delivery of the request for the establishment of a panel under Article 28.7.1 (Establishment of a Panel), the complaining Party or Parties, on the one hand, and the responding Party, on the other, shall each appoint a panellist and notify each other of those appointments.

(b) If the complaining Party or Parties fail to appoint a panellist within the period specified in subparagraph (a), the dispute settlement proceedings shall lapse at the end of that period.

(c) If the responding Party fails to appoint a panellist within the period specified in subparagraph (a), the complaining Party or Parties shall select the panellist not yet appointed:

(i) from the responding Party's list established under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists);

(ii) if the responding Party has not established a list under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists), from the roster of panel chairs established underArticle 28.11 (Roster of Panel Chairs and Party Specific Lists); or

(iii) if the responding Party has not established a list under Article 28.11.9 (Roster of Panel Chairs and Party Specific Lists) and no roster of panel chairs has been established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists), by random selection from a list of three candidates nominated by the complaining Party or Parties, no later than 35 days after the date of delivery of the request for the establishment of a panel under Article 28.7.1 (Establishment of a Panel).

(d) For appointment of the third panellist, who shall serve as chair:

(i) the disputing Parties shall endeavour to agree on the appointment of a chair;

(ii) if the disputing Parties fail to appoint a chair under subparagraph (d)(i) by the time the second panellist is appointed or within a period of 35 days after the date of delivery of the request for the establishment of a panel under Article 28.7.1 (Establishment of a Panel), whichever is longer, the two panellists appointed shall, by agreement, appoint the chair from the roster established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists);

(iii) if the two panellists do not agree on the appointment of the chair under subparagraph (d)(ii) within a period of 43 days after the date of delivery of the request for the establishment of a panel under Article 28.7.1 (Establishment of a Panel), the two panellists shall appoint the chair with the agreement of the disputing Parties;

(iv) if the two panellists fail to appoint the chair under subparagraph (d)(iii) within a period of 55 days after the date of delivery of the request for the establishment of the panel, the disputing Parties shall select the chair by random selection from the roster established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) within a period of 60 days after the date of delivery of the request for the establishment of the panel;

(v) notwithstanding subparagraph (d)(iv), if the two panellists fail to appoint the chair under subparagraph (d)(iii) within a period of 55 days after the date of delivery of the request for the establishment of the panel, a disputing Party may elect to have the chair appointed from the roster established under Article 28.11(Roster of Panel Chairs and Party Specific Lists) by an independent third party, provided that the following conditions are met:

(A) any costs associated with the appointment are borne by the electing Party;

(B) the request to the independent third party to appoint the chair shall be made jointly by the disputing Parties. Any subsequent communication between a disputing Party and the independent third party shall be copied to the other disputing Party or Parties. No disputing Party shall attempt to influence the independent third party's appointment process; and

(C) if the independent third party is unable or unwilling to complete the appointment as requested within a period of 60 days after the date of delivery of the request for the establishment of the panel, then the chair shall be randomly selected within a further period of five days using the process set out in subparagraph (d)(iv);

(vi) if a roster has not been established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists), and subparagraphs (d)(ii) through (v) cannot apply, the complaining Party or Parties, on the one hand, and the responding Party, on the other hand, may nominate three candidates. The chair shall be randomly selected from those candidates that are nominated within a period of 60 days after the date of delivery of the request for the establishment of a panel under Article 28.7.1 (Establishment of a Panel); and

(vii) notwithstanding subparagraph (d)(vi), if a roster has not been established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists), and subparagraphs (d)(i) through (v) cannot apply, a disputing Party may, following the nomination of candidates under subparagraph (d)(vi), elect to have the chair appointed from those candidates by an independent third party, provided that the following conditions are met:

(A) any costs associated with such appointment are borne by the electing Party;

3. Unless the disputing Parties agree otherwise, the chair shall not be a national of any of the disputing Parties or a third Party and any nationals of the disputing Parties or a third Party appointed to the roster established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) shall be excluded from a selection process under paragraph 2(d).

4. Each disputing Party shall endeavour to select panellists who have expertise or experience relevant to the subject matter of the dispute.

5. For a dispute arising under Chapter 19 (Labour), Chapter 20 (Environment) or Chapter 26 (Transparency and Anti-corruption), each disputing Party shall select panellists in accordance with the following requirements, in addition to those set out in Article 28.10.1 (Qualifications of Panellists):

(a) in any dispute arising under Chapter 19 (Labour), panellists other than the chair shall have expertise or experience in labour law or practice;

(b) in any dispute arising under Chapter 20 (Environment), panellists other than the chair shall have expertise or experience in environmental law or practice; and

(c) in any dispute arising under section C of Chapter 26 (Transparency and Anti-corruption), panellists other than the chair shall have expertise or experience in anti-corruption law or practice.

6. If a panellist selected under paragraph 2 is unable to serve on the panel, the complaining Party, the responding Party, or the disputing Parties, as the case may be, shall, no later than seven days after learning that the panellist is unavailable, select another panellist in accordance with the same method of selection that was used to select the panellist who is unable to serve, unless the disputing Parties agree otherwise.

7. If the process for selecting the new panellist under paragraph 6 is not completed within the time frame set out in that paragraph then the disputing Parties shall select the panellist by random selection from the roster established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) no later than 15 days after learning that the original panellist is no longer able to serve.

8. If a roster has not been established under Article 28.11 (Roster of Panel Chairs and Party Specific Lists) then the disputing Parties shall select the panellist by using the method of selection set out in paragraph 2(d)(vi) no later than 15 days after learning that the original panellist is no longer able to serve.

9. If a panellist appointed under this Article resigns or becomes unable to serve on the panel, either during the course of the proceeding or when the panel is reconvened under Article 28.20 (Non-Implementation - Compensation and Suspension of Benefits) or Article 28.21 (Compliance Review), a replacement panellist shall be appointed within 15 days in accordance with paragraphs 6, 7 and 8. The replacement shall have all the powers and duties of the original panellist. The work of the panel shall be suspended pending the appointment of the replacement panellist, and all time frames set out in this Chapter and in the Rules of Procedure shall be extended by the amount of time that the work was suspended.

10. If a disputing Party believes that a panellist is in violation of the code of conduct referred to in Article 28.10.1(d) (Qualifications of Panellists), the disputing Parties shall consult and, if they agree, the panellist shall be removed and a new panellist shall be selected in accordance with this Article.

Article 28.10: Qualifications of Panellists

1. All panellists shall:

(a) have expertise or experience in law, international trade, other matters covered by this Agreement or the resolution of disputes arising under international trade agreements;

(b) be chosen strictly on the basis of objectivity, reliability and sound judgment;

(d) comply with the code of conduct in the Rules of Procedure.

2. An individual shall not serve as a panellist for a dispute in which that person has participated under Article 28.6 (Good Offices, Conciliation and Mediation).

Article 28.11: Roster of Panel Chairs and Party Specific Lists

Roster of Panel Chairs

1. No later than 120 days after the date of entry into force of this Agreement, those Parties for which this Agreement has come into force under Article 30.5 (Entry into Force) shall establish a roster to be used for the selection of panel chairs.

2. If the Parties are unable to establish a roster within the time period specified in paragraph 1, the Commission shall immediately convene to appoint individuals to the roster. Taking into account the nominations made under paragraph 4 and the qualifications set out in Article 28.10 (Qualifications of Panellists), the Commission shall establish the roster no later than 180 days after the date of entry into force of this Agreement.

3. The roster shall consist of at least 15 individuals, unless the Parties agree otherwise.

4. Each Party may nominate up to two individuals for the roster and may include up to one national of any Party among its nominations.

5. The Parties shall appoint individuals to the roster by consensus. The roster may include up to one national of each Party.

6. Once established under paragraph 1 or 2, or if reconstituted following a review by the Parties, a roster shall remain in effect for a minimum of three years or until the Parties constitute a new roster. Members of the roster may be reappointed.

7. The Parties may appoint a replacement at any time if a roster member is no longer willing or available to serve.

8. Subject to paragraphs 4 and 5, any acceding Party may nominate up to two individuals for the roster. Either or both of those individuals may be included on the roster by consensus of the Parties.

Party Specific Indicative List

9. At any time after the date of entry into force of this Agreement, a Party may establish a list of individuals who are willing and able to serve as panellists.

10. The list referred to in paragraph 9 may include individuals who are nationals of that Party or non-nationals. Each Party may appoint any number of individuals to its list and appoint additional individuals or replace a list member at any time.

11. A Party that establishes a list in accordance with paragraph 9 shall promptly make it available to the other Parties.

Article 28.12: Function of Panels

1. A panel's function is to make an objective assessment of the matter before it, which includes an examination of the facts and the applicability of and conformity with this Agreement, and to make the findings, determinations and recommendations as are called for in its terms of reference and necessary for the resolution of the dispute.

2. Unless the disputing Parties agree otherwise, the panel shall perform its functions and conduct its proceedings in a manner consistent with this Chapter and the Rules of Procedure.

3. The panel shall consider this Agreement in accordance with the rules of interpretation under international law as reflected in Articles 31 and 32 of the Vienna Convention on the Law of Treaties (1969). With respect to any provision of the WTO Agreement that has been incorporated into this Agreement, the panel shall also consider relevant interpretations in reports of panels and the WTO Appellate Body adopted by the WTO Dispute Settlement Body. The findings, determinations and recommendations of the panel shall not add to or diminish the rights and obligations of the Parties under this Agreement.

4. A panel shall take its decisions by consensus, except that, if a panel is unable to reach consensus, it may take its decisions by majority vote.

Article 28.13: Rules of Procedure for Panels

The Rules of Procedure, established under this Agreement in accordance with Article 27.2.1(f) (Functions of the Commission), shall ensure that:

(a) disputing Parties have the right to at least one hearing before the panel at which each may present views orally;

(b) subject to subparagraph (f), any hearing before the panel shall be open to the public, unless the disputing Parties agree otherwise;

(d) subject to subparagraph (f), each disputing Party shall:

(i) make its best efforts to release to the public its written submissions, written version of an oral statement and written response to a request or question from the panel, if any, as soon as possible after those documents are filed; and

(ii) if not already released, release all these documents by the time the final report of the panel is issued;

(e) the panel shall consider requests from non-governmental entities located in the territory of a disputing Party to provide written views regarding the dispute that may assist the panel in evaluating the submissions and arguments of the disputing Parties;

(f) confidential information is protected;

(g) written submissions and oral arguments shall be made in English, unless the disputing Parties agree otherwise; and

(h) unless the disputing Parties agree otherwise, hearings shall be held in the capital of the responding Party.

Article 28.14: Third Party Participation

A Party that is not a disputing Party and that considers it has an interest in the matter before the panel shall, on delivery of a written notice to the disputing Parties, be entitled to attend all hearings, make written submissions, present views orally to the panel, and receive written submissions of the disputing Parties. The Party shall provide written notice no later than 10 days after the date of circulation of the request for the establishment of the panel under Article 28.7.2 (Establishment of a Panel).

Article 28.15: Role of Experts

At the request of a disputing Party, or on its own initiative, a panel may seek information and technical advice from any person or body that it deems appropriate, provided that the disputing Parties agree and subject to any terms and conditions agreed by the disputing Parties. The disputing Parties shall have an opportunity to comment on any information or advice obtained under this Article.

Article 28.16: Suspension or Termination of Proceedings

1. The panel may suspend its work at any time at the request of the complaining Party or, if there is more than one complaining Party, at the joint request of the complaining Parties, for a period not to exceed 12 consecutive months. The panel shall suspend its work at any time if the disputing Parties request it to do so. In the event of a suspension, the time frames set out in this Chapter and in the Rules of Procedure shall be extended by the amount of time that the work was suspended. If the work of the panel is suspended for more than 12 consecutive months, the panel proceedings shall lapse unless the disputing Parties agree otherwise.

2. The panel shall terminate its proceedings if the disputing Parties request it to do so.

Article 28.17: Initial Report

1. The panel shall draft its report without the presence of any Party.

2. The panel shall base its report on the relevant provisions of this Agreement, the submissions and arguments of the disputing Parties and any third Parties, and on any information or advice put before it under Article 28.15 (Role of Experts). At the joint request of the disputing Parties, the panel may make recommendations for the resolution of the dispute.

3. The panel shall present an initial report to the disputing Parties no later than 150 days after the date of the appointment of the last panellist. In cases of urgency, including those related to perishable goods, the panel shall endeavour to present an initial report to the disputing Parties no later than 120 days after the date of the appointment of the last panellist.

4. The initial report shall contain:

(a) findings of fact;

(b) the determination of the panel as to whether:

(i) the measure at issue is inconsistent with obligations in this Agreement;

(ii) a Party has otherwise failed to carry out its obligations in this Agreement; or

(iii) the measure at issue is causing nullification or impairment within the meaning of Article 28.3.1(c) (Scope);

(d) recommendations, if the disputing Parties have jointly requested them, for the resolution of the dispute; and

(e) the reasons for the findings and determinations.

5. In exceptional cases, if the panel considers that it cannot release its initial report within the time period specified in paragraph 3, it shall inform the disputing Parties in writing of the reasons for the delay together with an estimate of when it will issue its report. A delay shall not exceed an additional period of 30 days unless the disputing Parties agree otherwise.

6. Panellists may present separate opinions on matters not unanimously agreed.

7. A disputing Party may submit written comments to the panel on its initial report no later than 15 days after the presentation of the initial report or within another period as the disputing Parties may agree.

8. After considering any written comments by the disputing Parties on the initial report, the panel may modify its report and make any further examination it considers appropriate.

Article 28.18: Final Report

1. The panel shall present a final report to the disputing Parties, including any separate opinions on matters not unanimously agreed, no later than 30 days after presentation of the initial report, unless the disputing Parties agree otherwise. After taking any steps to protect confidential information, and no later than 15 days after the presentation of the final report, the disputing Parties shall release the final report to the public.

2. No panel shall, either in its initial report or its final report, disclose which panellists are associated with majority or minority opinions.

Article 28.19: Implementation of Final Report

1. The Parties recognise the importance of prompt compliance with determinations made by panels under Article 28.18 (Final Report) in achieving the aim of the dispute settlement procedures in this Chapter, which is to secure a positive solution to disputes.

2. If in its final report the panel determines that:

(a) the measure at issue is inconsistent with a Party's obligations in this Agreement;

(b) a Party has otherwise failed to carry out its obligations in this Agreement; or

(c) the measure at issue is causing nullification or impairment within the meaning of Article 28.3.1(c) (Scope), the responding Party shall, whenever possible, eliminate the non-conformity or the nullification or impairment.

3. Unless the disputing Parties agree otherwise, the responding Party shall have a reasonable period of time in which to eliminate the non-conformity or nullification or impairment if it is not practicable to do so immediately.

4. The disputing Parties shall endeavour to agree on the reasonable period of time. If the disputing Parties fail to agree on the reasonable period of time within a period of 45 days after the presentation of the final report under Article 28.18.1 (Final Report), any disputing Party may, no later than 60 days after the presentation of the final report under Article 28.18.1 (Final Report), refer the matter to the chair to determine the reasonable period of time through arbitration.

5. The chair shall take into consideration as a guideline that the reasonable period of time should not exceed 15 months from the presentation of the final report under Article 28.18.1 (Final Report). However, that time may be shorter or longer, depending upon the particular circumstances.

6. The chair shall determine the reasonable period of time no later than 90 days after the date of referral to the chair under paragraph 4.

7. The disputing Parties may agree to vary the procedures set out in paragraphs 4 through 6 for the determination of the reasonable period of time.

Article 28.20: Non-Implementation – Compensation and Suspension of Benefits

1. The responding Party shall, if requested by the complaining Party or Parties, enter into negotiations with the complaining Party or Parties no later than 15 days after receipt of that request, with a view to developing mutually acceptable compensation, if:

(a) the responding Party has notified the complaining Party or Parties that it does not intend to eliminate the non-conformity or the nullification or impairment; or

(b) following the expiry of the reasonable period of time established in accordance with Article 28.19 (Implementation of Final Report), there is disagreement between the disputing Parties as to whether the responding Party has eliminated the non-conformity or the nullification or impairment.

2. A complaining Party may suspend benefits in accordance with paragraph 3 if that complaining Party and the responding Party have:

(a) been unable to agree on compensation within a period of 30 days after the period for developing compensation has begun; or

(b) agreed on compensation but the relevant complaining Party considers that the responding Party has failed to observe the terms of the agreement.

3. A complaining Party may, at any time after the conditions set out in paragraph 2 are met in relation to that complaining Party, provide written notice to the responding Party that it intends to suspend benefits of equivalent effect. The notice shall specify the level of benefits that the Party proposes to suspend. The complaining Party may begin suspending benefits 30 days after the later of the date on which it provides notice under this paragraph or the date that the panel issues its determination under paragraph 5, as the case may be.

4. In considering what benefits to suspend under paragraph 3, the complaining Party shall apply the following principles and procedures:

(a) it should first seek to suspend benefits in the same subject matter as that in which the panel has determined non-conformity or nullification or impairment to exist;

(b) if it considers that it is not practicable or effective to suspend benefits in the same subject matter, and that the circumstances are serious enough, it may suspend benefits in a different subject matter. In the written notice referred to in paragraph 3, the complaining Party shall indicate the reasons on which its decision to suspend benefits in a different subject matter is based; and

(i) the trade in the good, the supply of the service or other subject matter in which the panel has found the non conformity or nullification or impairment, and the importance of that trade to the complaining Party;

(ii) that goods, all financial services covered under Chapter 11 (Financial Services), services other than such financial services, and each section in Chapter 18 (Intellectual Property), are each distinct subject matters; and

(iii) the broader economic elements related to the nullification or impairment and the broader economic consequences of the suspension of benefits.

5. If the responding Party considers that:

(a) the level of benefits proposed to be suspended is manifestly excessive or the complaining Party has failed to follow the principles and procedures set out in paragraph 4; or

(b) it has eliminated the non-conformity or the nullification or impairment that the panel has determined to exist, it may, within 30 days of the date of delivery of the written notice provided by the complaining Party under paragraph 3, request that the panel be reconvened to consider the matter. The responding Party shall deliver its request in writing to the complaining Party. The panel shall reconvene as soon as possible after the date of delivery of the request and shall present its determination to the disputing Parties no later than 90 days after it reconvenes to review a request under subparagraph (a) or (b), or 120 days after it reconvenes for a request under both subparagraphs (a) and (b). If the panel determines that the level of benefits the complaining Party proposes to suspend is manifestly excessive, it shall determine the level of benefits it considers to be of equivalent effect.

6. Unless the panel has determined that the responding Party has eliminated the non-conformity or the nullification or impairment, the complaining Party may suspend benefits up to the level the panel has determined under paragraph 5 or, if the panel has not determined the level, the level the complaining Party has proposed to suspend under paragraph 3. If the panel determines that the complaining Party has not followed the principles and procedures set out in paragraph 4, the panel shall set out in its determination the extent to which the complaining Party may suspend benefits in which subject matter in order to ensure full compliance with the principles and procedures set out in paragraph 4. The complaining Party may suspend benefits only in a manner consistent with the panel's determination.

7. The complaining Party shall not suspend benefits if, within 30 days after it provides written notice of intent to suspend benefits or, if the panel is reconvened under paragraph 5, within 20 days after the panel provides its determination, the responding Party provides written notice to the complaining Party that it will pay a monetary assessment. The disputing Parties shall begin consultations no later than 10 days after the date on which the responding Party has given notice that it intends to pay a monetary assessment, with a view to reaching agreement on the amount of the assessment. If the disputing Parties are unable to reach an agreement within 30 days after consultations begin and are not engaged in discussions regarding the use of a fund under paragraph 8, the amount of the assessment shall be set at a level, in U.S. dollars, equal to 50 per cent of the level of the benefits the panel has determined under paragraph 5 to be of equivalent effect or, if the panel has not determined the level, 50 per cent of the level that the complaining Party has proposed to suspend under paragraph 3.

8. If a monetary assessment is to be paid to the complaining Party, then it shall be paid in U.S. dollars, or in an equivalent amount of the currency of the responding Party or in another currency agreed to by the disputing Parties in equal, quarterly instalments beginning 60 days after the date on which the responding Party gives notice that it intends to pay an assessment. If the circumstances warrant, the disputing Parties may decide that the responding Party shall pay an assessment into a fund designated by the disputing Parties for appropriate initiatives to facilitate trade between the Parties, including by further reducing unreasonable trade barriers or by assisting the responding Party to carry out its obligations under this Agreement.

9. At the same time as the payment of its first quarterly instalment is due, the responding Party shall provide to the complaining Party a plan of the steps it intends to take to eliminate the non-conformity or the nullification or impairment.

10. A responding Party may pay a monetary assessment in lieu of suspension of benefits by the complaining Party for a maximum of 12 months from the date on which the responding Party has provided written notice under paragraph 7 unless the complaining Party agrees to an extension.

11. A responding Party that seeks an extension of the period for the payment under paragraph 10 shall make a written request for that extension no later than 30 days before the expiration of the 12 month period. The disputing Parties shall determine the length and terms of any extension, including the amount of the assessment.

12. The complaining Party may suspend the application to the responding Party of benefits in accordance with paragraphs 3, 4 and 6, if:

(a) the responding Party fails to make a payment under paragraph 8 or fails to make the payment under paragraph 13 after electing to do so;

(b) the responding Party fails to provide the plan as required under paragraph 9; or

(c) the monetary assessment period, including any extension, has lapsed and the responding Party has not yet eliminated the non conformity or the nullification or impairment.

13. If the responding Party notified the complaining Party that it wished to discuss the possible use of a fund and the disputing Parties do not agree on the use of a fund within three months of the date of the responding Party's notice under paragraph 7, and this time period has not been extended by agreement of the disputing Parties, the responding Party may elect to make the monetary assessment payment equal to 50 per cent of the amount determined under paragraph 5 or the level proposed by the complaining Party under paragraph 3 if there has been no determination under paragraph 5. If this election is made, the payment must be made within nine months of the responding Party's notice under paragraph 7 in U.S. dollars, or in an equivalent amount of the currency of the responding Party or in another currency agreed to by the disputing Parties. If the election is not made, the complaining Party may suspend the application of benefits in the amount determined under paragraph 5, or the level proposed by the complaining Party under paragraph 3 if there has been no determination under paragraph 5, at the end of the election period.

14. The complaining Party shall accord sympathetic consideration to the notice provided by the responding Party regarding the possible use of the fund referred to in paragraphs 8 and 13.

15. Compensation, suspension of benefits and the payment of a monetary assessment shall be temporary measures. None of these measures is preferred to full implementation through elimination of the non-conformity or the nullification or impairment. Compensation, suspension of benefits and the payment of a monetary assessment shall only be applied until the responding Party has eliminated the non-conformity or the nullification or impairment, or until a mutually satisfactory solution is reached.

Article 28.21: Compliance Review

1. Without prejudice to the procedures in Article 28.20 (Non-Implementation - Compensation and Suspension of Benefits), if a responding Party considers that it has eliminated the non-conformity or the nullification or impairment found by the panel, it may refer the matter to the panel by providing a written notice to the complaining Party or Parties. The panel shall issue its report on the matter no later than 90 days after the responding Party provides written notice.

2. If the panel determines that the responding Party has eliminated the non conformity or the nullification or impairment, the complaining Party or Parties shall promptly reinstate any benefits suspended under Article 28.20 (Non Implementation - Compensation and Suspension of Benefits).

Section B: Domestic Proceedings and Private Commercial Dispute Settlement

Article 28.22: Private Rights

No Party shall provide for a right of action under its law against any other Party on the ground that a measure of that other Party is inconsistent with its obligations under this Agreement, or that the other Party has otherwise failed to carry out its obligations under this Agreement.

Article 28.23: Alternative Dispute Resolution

1. Each Party shall, to the maximum extent possible, encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the free trade area.

2. To this end, each Party shall provide appropriate procedures to ensure observance of agreements to arbitrate and for the recognition and enforcement of arbitral awards in such disputes.

3. A Party shall be deemed to be in compliance with paragraph 2 if it is a party to, and is in compliance with, the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards done at New York on 10 June 1958.

CHAPTER 29

EXCEPTIONS AND GENERAL PROVISIONS

Section A: Exceptions

Article 29.1: General Exceptions

1. For the purposes of Chapter 2 (National Treatment and Market Access for Goods), Chapter 3 (Rules of Origin and Origin Procedures), Chapter 4 (Textile and Apparel Goods), Chapter 5 (Customs Administration and Trade Facilitation), Chapter 7 (Sanitary and Phytosanitary Measures), Chapter 8 (Technical Barriers to Trade) and Chapter 17 (State-Owned Enterprises and Designated Monopolies), Article XX of GATT 1994 and its interpretative notes are incorporated into and made part of this Agreement, mutatis mutandis.

2. The Parties understand that the measures referred to in Article XX(b) of GATT 1994 include environmental measures necessary to protect human, animal or plant life or health, and that Article XX(g) of GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources.

3. For the purposes of Chapter 10 (Cross-Border Trade in Services), Chapter 12 (Temporary Entry for Business Persons), Chapter 13 (Telecommunications), Chapter 14 (Electronic Commerce)　and Chapter 17 (State-Owned Enterprises and Designated Monopolies), paragraphs (a), (b) and (c) of Article XIV of GATS are incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XIV(b) of GATS include environmental measures necessary to protect human, animal or plant life or health.

4. Nothing in this Agreement shall be construed to prevent a Party from taking action, including maintaining or increasing a customs duty, that is authorised by the Dispute Settlement Body of the WTO or is taken as a result of a decision by a dispute settlement panel under a free trade agreement to which the Party taking action and the Party against which the action is taken are party.

Article 29.2: Security Exceptions

Nothing in this Agreement shall be construed to:

(a) require a Party to furnish or allow access to any information the disclosure of which it determines to be contrary to its essential security interests; or

(b) preclude a Party from applying measures that it considers necessary for the fulfilment of its obligations with respect to the maintenance or restoration of international peace or security, or the protection of its own essential security interests.

Article 29.3: Temporary Safeguard Measures

1. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining restrictive measures with regard to payments or transfers for current account transactions in the event of serious balance of payments and external financial difficulties or threats thereof.

2. Nothing in this Agreement shall be construed to prevent a Party from adopting or maintaining restrictive measures with regard to payments or transfers relating to the movements of capital:

(a) in the event of serious balance of payments and external financial difficulties or threats thereof; or

(b) if, in exceptional circumstances, payments or transfers relating to capital movements cause or threaten to cause serious difficulties for macroeconomic management.

3. Any measure adopted or maintained under paragraph 1 or 2 shall:

(a) not be inconsistent with Article 9.4 (National Treatment), Article 9.5 (Most-Favoured-Nation Treatment), Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment),　Article 11.3 (National Treatment) and Article 11.4 (Most Favoured-Nation Treatment);4

(b) be consistent with the Articles of Agreement of the International Monetary Fund;

(d) not exceed those necessary to deal with the circumstances described in paragraph 1 or 2;

(e) be temporary and be phased out progressively as the situations specified in paragraph 1 or 2 improve, and shall not exceed 18 months in duration; however, in exceptional circumstances, a Party may extend such measure for additional periods of one year, by notifying the other Parties in writing within 30 days of the extension, unless after consultations more than one-half of the Parties advise, in writing, within 30 days of receiving the notification that they do not agree that the extended measure is designed and applied to satisfy subparagraphs (c), (d) and (h), in which case the Party imposing the measure shall remove the measure, or otherwise modify the measure to bring it into conformity with subparagraphs (c), (d) and (h), taking into account the views of the other Parties, within 90 days of receiving notification that more than one half of the Parties do not agree;

(f) not be inconsistent with Article 9.8 (Expropriation and Compensation);

(g) in the case of restrictions on capital outflows, not interfere with investors' ability to earn a market rate of return in the territory of the restricting Party on any restricted assets;　and

(h) not be used to avoid necessary macroeconomic adjustment.

4. Measures referred to in paragraphs 1 and 2 shall not apply to payments or transfers relating to foreign direct investment.

5. A Party shall endeavour to provide that any measures adopted or maintained under paragraph 1 or 2 be price-based, and if such measures are not price-based, the Party shall explain the rationale for using quantitative restrictions when it notifies the other Parties of the measure.

6. In the case of trade in goods, Article XII of GATT 1994 and the Understanding on the Balance of Payments Provisions of the GATT 1994 are incorporated into and made part of this Agreement, mutatis mutandis. Any measures adopted or maintained under this paragraph shall not impair the relative benefits accorded to the other Parties under this Agreement as compared to the treatment of a non-Party.

7. A Party adopting or maintaining measures under paragraph 1, 2 or 6 shall:

(a) notify, in writing, the other Parties of the measures, including any changes therein, along with the rationale for their imposition, within 30 days of their adoption;

(b) present, as soon as possible, either a time schedule or the conditions necessary for their removal;

(d) promptly commence consultations with the other Parties in order to review the measures adopted or maintained by it.

(i) In the case of capital movements, promptly respond to any other Party that requests consultations in relation to the measures adopted by it, provided that such consultations are not otherwise taking place outside of this Agreement.

(ii) In the case of current account restrictions, if consultations in relation to the measures adopted by it are not taking place under the framework of the WTO Agreement, a Party, if requested, shall promptly commence consultations with any interested Party.

Article 29.4: Taxation Measures

1. For the purposes of this Article:

designated authorities means:

(a) for Australia, the Secretary to the Treasury or an authorised representative of the Secretary;

(b) for Brunei Darussalam, the Minister of Finance or the Minister's authorised representative;

(d) for Chile, the Undersecretary of the Ministry of Finance (Subsecretario de Hacienda);

(e) for Japan, the Minister for Foreign Affairs and the Minister of Finance;

(f) for Malaysia, the Minister of Finance or the Minister's authorised representative;

(g) for Mexico, the Minister of Finance and Public Credit (Secretario de Hacienda y Crédito Público);

(h) for New Zealand, the Commissioner of Inland Revenue or an authorised representative of the Commissioner;

(i) for Peru, the General Director of International Economy, Competition and Productivity Affairs (Director General de Asuntos de Economía Internacional, Competencia y Productividad del Ministerio de Economía y Finanzas);

(j) for Singapore, the Chief Tax Policy Officer, Ministry of Finance;

(k) for the United States, the Assistant Secretary of the Treasury (Tax Policy); and

(l) for Viet Nam, the Minister of Finance, or any successor of these designated authorities as notified in writing to the other Parties;

tax convention means a convention for the avoidance of double taxation or other international taxation agreement or arrangement; and

taxes and taxation measures include excise duties, but do not include: (a) a "customs duty" as defined in Article 1.3 (General Definitions); or (b) the measures listed in subparagraphs (b) and (c) of that definition.

2. Except as provided in this Article, nothing in this Agreement shall apply to taxation measures.

3. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax convention. In the event of any inconsistency between this Agreement and any such tax convention, that convention shall prevail to the extent of the inconsistency.

4. In the case of a tax convention between two or more Parties, if an issue arises as to whether any inconsistency exists between this Agreement and the tax convention, the issue shall be referred to the designated authorities of the Parties in question. The designated authorities of those Parties shall have six months from the date of referral of the issue to make a determination as to the existence and extent of any inconsistency. If those designated authorities agree, the period may be extended up to 12 months from the date of referral of the issue. No procedures concerning the measure giving rise to the issue may be initiated under Chapter 28 (Dispute Settlement) or Article 9.19 (Submission of a Claim to Arbitration) until the expiry of the six-month period, or any other period as may have been agreed by the designated authorities. A panel or tribunal established to consider a dispute related to a taxation measure shall accept as binding a determination of the designated authorities of the Parties made under this paragraph.

5. Notwithstanding paragraph 3:

(a) Article 2.3 (National Treatment) and such other provisions of this Agreement as are necessary to give effect to that Article shall apply to taxation measures to the same extent as does Article III of GATT 1994; and

(b) Article 2.15 (Export Duties, Taxes or other Charges) shall apply to taxation measures.

6. Subject to paragraph 3:

(a) Article 10.3 (National Treatment) and Article 11.6.1 (Cross-Border Trade) shall apply to taxation measures on income, on capital gains, on the taxable capital of corporations, or on the value of an investment or property9(but not on the transfer of that investment or property), that relate to the purchase or consumption of particular services, except that nothing in this subparagraph shall prevent a Party from conditioning the receipt or continued receipt of an advantage that relates to the purchase or consumption of particular services on requirements to provide the service in its territory;

(b) Article 9.4 (National Treatment), Article 9.5 (Most-Favoured Nation Treatment), Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), Article 11.3 (National Treatment), Article 11.4 (Most-Favoured-Nation Treatment), Article 11.6.1 (Cross-Border Trade) and Article 14.4 (Non Discriminatory Treatment of Digital Products) shall apply to all taxation measures, other than those on income, on capital gains, on the taxable capital of corporations, on the value of an investment or property9(but not on the transfer of that investment or property), or taxes on estates, inheritances, gifts and generation-skipping transfers; and

(c) Article 14.4 (Non-Discriminatory Treatment of Digital Products) shall apply to taxation measures on income, on capital gains, on the taxable income of corporations, or on the value of an investment or property9(but not on the transfer of that investment or property), that relate to the purchase or consumption of particular digital products, except that nothing in this subparagraph shall prevent a Party from conditioning the receipt or continued receipt of an advantage relating to the purchase or consumption of particular digital products on requirements to provide the digital product in its territory, but nothing in the Articles referred to in subparagraphs (a), (b) and (c) shall apply to:

(d) any most-favoured-nation obligation with respect to an advantage accorded by a Party pursuant to a tax convention;

(e) a non-conforming provision of any existing taxation measure;

(f) the continuation or prompt renewal of a non-conforming provision of any existing taxation measure;

(g) an amendment to a non-conforming provision of any existing taxation measure to the extent that the amendment does not decrease its conformity, at the time of the amendment, with any of those Articles;

(h) the adoption or enforcement of any new taxation measure aimed at ensuring the equitable or effective imposition or collection of taxes, including any taxation measure that differentiates between persons based on their place of residence for tax purposes, provided that the taxation measure does not arbitrarily discriminate between persons, goods or services of the Parties;10

(i) a provision that conditions the receipt or continued receipt of an advantage relating to the contributions to, or income of, a pension trust, pension plan, superannuation fund or other arrangement to provide pension, superannuation or similar benefits, on a requirement that the Party maintain continuous jurisdiction, regulation or supervision over that trust, plan, fund or other arrangement; or

(j) any excise duty on insurance premiums to the extent that such tax would, if levied by the other Parties, be covered by subparagraph (e), (f) or (g).

7. Subject to paragraph 3, and without prejudice to the rights and obligations of the Parties under paragraph 5, Article 9.10.2 (Performance Requirements), Article 9.10.3 and Article 9.10.5 shall apply to taxation measures.

8. Article 9.8 (Expropriation and Compensation) shall apply to taxation measures. However, no investor may invoke Article 9.8 (Expropriation and Compensation) as the basis for a claim if it has been determined pursuant to this paragraph that the measure is not an expropriation. An investor that seeks to invoke Article 9.8 (Expropriation and Compensation) with respect to a taxation measure must first refer to the designated authorities of the Party of the investor and the respondent Party, at the time that it gives its notice of intent under Article 9.19 (Submission of a Claim to Arbitration), the issue of whether that taxation measure is not an expropriation. If the designated authorities do not agree to consider the issue or, having agreed to consider it, fail to agree that the measure is not an expropriation within a period of six months of the referral, the investor may submit its claim to arbitration under Article 9.19 (Submission of a Claim to Arbitration).

9. Nothing in this Agreement shall prevent Singapore from adopting taxation measures no more trade restrictive than necessary to address Singapore's public policy objectives arising out of its specific constraints of space.

Article 29.5: Tobacco Control Measures

A Party may elect to deny the benefits of Section B of Chapter 9 (Investment) with respect to claims challenging a tobacco control measure　of the Party. Such a claim shall not be submitted to arbitration under Section B of Chapter 9 (Investment) if a Party has made such an election. If a Party has not elected to deny benefits with respect to such claims by the time of the submission of such a claim to arbitration under Section B of Chapter 9 (Investment), a Party may elect to deny benefits during the proceedings. For greater certainty, if a Party elects to deny benefits with respect to such claims, any such claim shall be dismissed.

Article 29.6: Treaty of Waitangi

1. Provided that such measures are not used as a means of arbitrary or unjustified discrimination against persons of the other Parties or as a disguised restriction on trade in goods, trade in services and investment, nothing in this Agreement shall preclude the adoption by New Zealand of measures it deems necessary to accord more favourable treatment to Maori in respect of matters covered by this Agreement, including in fulfilment of its obligations under the Treaty of Waitangi.

2. The Parties agree that the interpretation of the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it, shall not be subject to the dispute settlement provisions of this Agreement. Chapter 28 (Dispute Settlement) shall otherwise apply to this Article. A panel established under Article 28.7 (Establishment of a Panel) may be requested to determine only whether any measure referred to in paragraph 1 is inconsistent with a Party's rights under this Agreement.

Section B: General Provisions

Article 29.7: Disclosure of Information

Nothing in this Agreement shall be construed to require a Party to furnish or allow access to information, the disclosure of which would be contrary to its law or would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.

Article 29.8: Traditional Knowledge and Traditional Cultural Expressions

Subject to each Party's international obligations, each Party may establish appropriate measures to respect, preserve and promote traditional knowledge and traditional cultural expressions.

CHAPTER 30

FINAL PROVISIONS

Article 30.1: Annexes, Appendices and Footnotes

The Annexes, Appendices and footnotes to this Agreement shall constitute an integral part of this Agreement.

Article 30.2: Amendments

The Parties may agree, in writing, to amend this Agreement. When so agreed by all Parties and approved in accordance with the applicable legal procedures of each Party, an amendment shall enter into force 60 days after the date on which all Parties have notified the Depositary in writing of the approval of the amendment in accordance with their respective applicable legal procedures, or on such other date as the Parties may agree.

Article 30.3: Amendment of the WTO Agreement

In the event of an amendment of the WTO Agreement that amends a provision that the Parties have incorporated into this Agreement, the Parties shall, unless otherwise provided for in this Agreement, consult on whether to amend this Agreement.

Article 30.4: Accession

1. This Agreement is open to accession by:

(a) any State or separate customs territory that is a member of APEC; and

(b) any other State or separate customs territory as the Parties may agree,

that is prepared to comply with the obligations in this Agreement, subject to such terms and conditions as may be agreed between the State or separate customs territory and the Parties, and following approval in accordance with the applicable legal procedures of each Party and acceding State or separate customs territory

(accession candidate).

2. A State or separate customs territory may seek to accede to this Agreement by submitting a request in writing to the Depositary.

3. (a) Following receipt of a request under paragraph 2, the Commission shall, provided in the case of paragraph 1(b) that the Parties so agree, establish a working group to negotiate the terms and conditions for the accession. Membership in the working group shall be open to all interested Parties.

(b) After completing its work, the working group shall provide a written report to the Commission. If the working group has reached agreement with the accession candidate on proposed terms and conditions for accession, the report shall set out the terms and conditions for the accession, a recommendation to the Commission to approve them, and a proposed Commission decision inviting the accession candidate to become a Party to this Agreement.

4. For the purposes of paragraph 3:

(a) A decision of the Commission to establish a working group under paragraph 3(a) shall be deemed to have been taken only if:

(i) all Parties have agreed to the establishment of a working group; or

(ii) in the event that a Party does not indicate agreement when the Commission makes a decision to establish a working group under paragraph 3(a), that Party has not objected in writing within seven days of the date on which the Commission so decides.

(b) A decision of the working group under paragraph 3(b) shall be deemed to have been taken only if:

(i) all Parties that are members of the working group have indicated agreement; or

(ii) in the event that a Party that is a member of the working group does not indicate agreement when the working group provides its report to the Commission, that Party has not objected to the report in writing within seven days of the date on which the working group provides its report.

5. If the Commission adopts a decision approving the terms and conditions for an accession and inviting an accession candidate to become a Party, the Commission shall specify a period, which may be subject to extension by agreement of the Parties, during which the accession candidate may deposit an instrument of accession with the Depositary indicating that it accepts the terms and conditions for the accession.

6. An accession candidate shall become a Party to this Agreement, subject to the terms and conditions for the accession approved in the Commission's decision, either on:

(a) the 60th day after the date on which the accession candidate deposits an instrument of accession with the Depositary indicating that it accepts the terms and conditions for the accession; or

(b) the date on which all Parties have notified the Depositary that they have completed their respective applicable legal procedures, whichever is later.

Article 30.5: Entry into Force

1. This Agreement shall enter into force 60 days after the date on which all original signatories have notified the Depositary in writing of the completion of their applicable legal procedures.

2. In the event that not all original signatories have notified the Depositary in writing of the completion of their applicable legal procedures within a period of two years of the date of signature of this Agreement, it shall enter into force 60 days after the expiry of this period if at least six of the original signatories, which together account for at least 85 per cent of the combined gross domestic product of the original signatories in 20131have notified the Depositary in writing of the completion of their applicable legal procedures within this period.

3. In the event that this Agreement does not enter into force under paragraph 1 or 2, it shall enter into force 60 days after the date on which at least six of the original signatories, which together account for at least 85 per cent of the combined gross domestic product of the original signatories in 2013, have notified the Depositary in writing of the completion of their applicable legal procedures.

4. After the date of entry into force of this Agreement under paragraph 2 or 3, an original signatory for which this Agreement has not entered into force shall notify the Parties of the completion of its applicable legal procedures and its intention to become a Party to this Agreement. The Commission shall determine within 30 days of the date of the notification by that original signatory whether this Agreement shall enter into force with respect to the notifying original signatory.

5. Unless the Commission and the notifying original signatory referred to in paragraph 4 agree otherwise, this Agreement shall enter into force for that notifying original signatory 30 days after the date on which the Commission makes an affirmative determination.

Article 30.6: Withdrawal

1. Any Party may withdraw from this Agreement by providing written notice of withdrawal to the Depositary. A withdrawing Party shall simultaneously notify the other Parties of its withdrawal through the overall contact points designated under Article 27.5 (Contact Points).

2. A withdrawal shall take effect six months after a Party provides written notice to the Depositary under paragraph 1, unless the Parties agree on a different period. If a Party withdraws, this Agreement shall remain in force for the remaining Parties.

Article 30.7: Depositary

1. The original English, Spanish and French texts of this Agreement shall be deposited with New Zealand, which is hereby designated as the Depositary of this Agreement.

2. The Depositary shall promptly provide certified copies of the original texts of this Agreement and of any amendments to this Agreement to each signatory State, acceding State and acceding separate customs territory.

3. The Depositary shall promptly inform each signatory and acceding State or acceding separate customs territory, and provide them with the date and a copy, of:

(a) a notification under Article 30.2 (Amendments), Article 30.4.6 (Accession) or Article 30.5 (Entry into Force);

(b) a request to accede to this Agreement under Article 30.4.2 (Accession);

(d) a notice of withdrawal provided under Article 30.6 (Withdrawal).

Article 30.8: Authentic Texts

The English, Spanish and French texts of this Agreement are equally authentic. In the event of any divergence between those texts, the English text shall prevail.

Annexes to the Trans-Pacific Partnership Agreement

Annex I - Investment and Cross-Border Trade in Services

ANNEX I

EXPLANATORY NOTES

1. The Schedule of a Party to this Annex sets out, pursuant to Article 9.12 (Non Conforming Measures) and Article 10.7 (Non-Conforming Measures), a Party's existing measures that are not subject to some or all of the obligations imposed by:

(a) Article 9.4 (National Treatment) or Article 10.3 (National Treatment);

(b) Article 9.5 (Most-Favoured-Nation Treatment) or Article 10.4 (Most Favoured-Nation Treatment);

(d) Article 9.11 (Senior Management and Boards of Directors);

(e) Article 10.5 (Market Access); or

(f) Article 10.6 (Local Presence).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Sub-Sector, where referenced, refers to the specific subsector for which the entry is made;

(c) Industry Classification, where referenced, refers to the activity covered by the non-conforming measure, according to the provisional CPC codes as used in the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991);

(d) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 9.12.1(a) (Non-Conforming Measures) and Article 10.7.1(a) (Non-Conforming Measures), do not apply to the listed measure(s) as indicated in the introductory note for each Party's Schedule;

(e) Level of Government indicates the level of government maintaining the listed measures;

(f) Measures identifies the laws, regulations or other measures for which the entry is made. A measure cited in the Measures element:

(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and

(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and

(g) Description, as indicated in the introductory note for each Party's Schedule, either sets out the non-conforming measure or provides a general non-binding description of the measure for which the entry is made.

3. Article 10.6 (Local Presence) and Article 10.3 (National Treatment) are separate disciplines and a measure that is only inconsistent with Article 10.6 (Local Presence) need not be reserved against Article 10.3 (National Treatment).

ANNEX I

SCHEDULE OF AUSTRALIA

INTRODUCTORY NOTES

1. Description sets out the non-conforming measure for which the entry is made.

2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming measures identified in the Description element of that entry.

Sector: All

Obligations Concerned:

National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Regional

Measure: All existing non-conforming measures at the regional level of government.

Description: Investment and Cross-Border Trade in Services

All existing non-conforming measures at the regional level of government.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Australia's Foreign Investment Policy, which consists of the Foreign Acquisitions and Takeovers Act 1975 (FATA) (Cth);

Foreign Acquisitions and Takeovers Regulations 1989 (Cth);

Financial Sector (Shareholdings) Act 1998 (Cth); and

Ministerial Statements.

Description: Investment

1. The following investment　require notification and approval from the Australian Government:

(a) proposed investments by foreign persons in existing Australian businesses, or prescribed corporations,3the value of whose assets exceeds $A252 million*in the following sectors:

(i) the telecommunications sector;

(ii) the transport sector, including airports, port facilities, rail infrastructure, international and domestic aviation and shipping services provided either within, or to and from, Australia;

(iii) the supply of training or human resources, or the manufacture or supply of military goods, equipment or technology, to the Australian or other defence forces;

(iv) the manufacture or supply of goods, equipment or technologies able to be used for a military purpose;

(v) the development, manufacture or supply of, or provision of services relating to, encryption and security technologies and communication systems; and

(vi) the extraction of (or rights to extract) uranium or plutonium, or the operation of nuclear facilities;

(b) proposed investments by foreign persons in existing Australian businesses, or prescribed corporations, in all other sectors, excluding financial sector companies4, the value of whose total assets exceeds $A1,094 million*;

(d) proposed investments by foreign persons of five per cent or more in the media sector, regardless of the value of the investment;

(e) proposed acquisitions by foreign persons of developed non-residential commercial real estate where the property is valued at more than $A1,094 million*.

Notified investments may be refused, subject to interim orders, and/or approved subject to compliance with certain conditions. Investments referred to above for which no notification is received may be subject to orders under Sections 18 through 21 and 21A of the FATA.

Separate or additional requirements may apply to measures subject to other Annex I reservations and to sectors, sub-sectors or activities subject to Annex II.

2. The acquisition of a stake in an existing financial sector company by a foreign investor, or entry into an arrangement by a foreign investor, that would lead to an unacceptable shareholding situation or to practical control of an existing financial sector company, may be refused, or be subject to certain conditions.7

Sector: Professional Services

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures:

Patents Act 1990 (Cth)

Patent Regulations (Cth)

Description: Cross-Border Trade in Services

In order to register to practise in Australia, patent attorneys must be ordinarily resident in Australia.

Sector: All

Obligations Concerned: Performance Requirements (Article 9.10)9

Level of Government:

Central

Regional

Measures: Designs Act 2003 (Cth)

Description: Investment

A design that has been registered or disclosed in a filed design application may be used by an Australian government (or a person authorised by an Australian government) and, if it is used, any agreement or licence fixing the terms on which a person other than that government may use the design may be inoperative with respect to the government use unless the agreement or licence has been approved by that government.

Sector: Professional Services

Obligations Concerned:

National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Migration Act 1958 (Cth)

Description: Cross-Border Trade in Services

To practise as a migration agent in Australia a person must be an Australian citizen or permanent resident or a citizen of New Zealand with a special category visa.

Sector: Professional Services

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Corporations Act 2001 (Cth)

Description: Cross-Border Trade in Services

A person who is not ordinarily resident in Australia may be refused registration as a company auditor or liquidator. At least one partner in a firm providing auditing services must be a registered company auditor who is ordinarily resident in Australia.

Sector: Professional Services

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Customs Act 1901 (Cth)

Description: Cross-Border Trade in Services

To act as a customs broker in Australia, service suppliers must supply the service in and from Australia.

Sector: Fishing and Services incidental to Fishing

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Level of Government: Central

Measures:

Fisheries Management Act 1991 (Cth)

Foreign Fishing Licences Levy Act 1991 (Cth)

Description: Investment and Cross-Border Trade in Services

Foreign fishing vessels seeking to undertake fishing activity, including any activity in support of or in preparation for any fishing activity or the processing, carrying or transhipment of fish, in the Australian Fishing Zone must be authorised.

Where foreign fishing vessels are authorised they may be subject to a levy.

Sector: Communication Services

Obligations Concerned:

National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Telstra Corporation Act 1991 (Cth)

Description: Investment

Aggregate foreign equity is restricted to no more than 35 per cent of shares of Telstra. Individual or associated group foreign investment is restricted to no more than five per cent of shares. The Chairperson and a majority of directors of Telstra must be Australian citizens and Telstra is required to maintain its head office, main base of operations and place of incorporation in Australia.

Sector: Health Services

Obligations Concerned:

National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Commonwealth Serum Laboratories Act 1961 (Cth)

Description: Investment

The votes attached to significant foreign shareholdings may not be counted in respect of the appointment, replacement or removal of more than one-third of the directors of Commonwealth Serum Laboratories (CSL) who hold office at a particular time. The head office, principal facilities used by CSL and any CSL subsidiaries used to produce products derived from human plasma collected from blood or plasma donated by individuals in Australia must remain in Australia. Two-thirds of the directors of the board of CSL and the chairperson of any meeting must be Australian citizens. CSL must not seek incorporation outside of Australia.

Sector: Transport Services

Obligations Concerned:

National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measure: Competition and Consumer Act 2010 (Cth)

Description: Investment and Cross-Border Trade in Services

Every ocean carrier who provides international liner cargo shipping services to or from Australia must, at all times, be represented by a natural person who is resident in Australia. Only a person affected by a registered conference agreement or by a registered non-conference ocean carrier with substantial market power may apply to the Australian Competition and Consumer Commission to examine whether conference members, and non-conference operators with substantial market power, are hindering other shipping operators from engaging efficiently in the provision of outward liner cargo services to an extent that is reasonable. For greater certainty, matters which are relevant to the determination of "reasonable" include Australia's national interest and the interests of Australian shippers.

Sector: Maritime Transport

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures:

Shipping Registration Act 1981 (Cth)

Shipping Registration Regulations 1981 (Cth)

Description: Investment and Cross-Border Trade in Services

For a ship to be registered on the Australian Shipping Register it must be majority Australian-owned or on demise charter to Australian-based operators. In the case of small craft, a ship must be wholly owned by or solely operated by Australian residents, Australian nationals or both.

For a trading ship to be registered on the International Shipping Register it must be wholly or majority Australian-owned, on demise charter to Australian-based operators or operated solely by Australian residents, Australian nationals or both. The master or chief mate, and chief engineer or first engineer of the ship must be an Australian national or Australian resident.

A ship on demise charter to an Australian-based operator is a ship on demise charter to:

(a) an Australian national or Australian nationals; or

(b) in circumstances where there are two or more persons who include an Australian national, where the Australian national is in a position to control the exercise of the rights and powers of the charterers under the charter party.

For the purposes of this entry, an Australian national is an Australian citizen who is ordinarily resident in Australia; or a body corporate that has its principal place of business in Australia.

Sector: Transport Services

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Air Navigation Act 1920 (Cth)

Ministerial Statements

Description: Investment

Total foreign ownership of individual Australian international airlines (other than Qantas) is restricted to a maximum of 49 per cent.

Furthermore, it is required that:

(a) at least two-thirds of the Board members must be Australian citizens;

(b) the Chairperson of the Board must be an Australian citizen;

(d) the airline's operational base must be in Australia.

Sector: Transport Services

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Qantas Sale Act 1992 (Cth)

Description: Investment

Total foreign ownership of Qantas Airways Ltd is restricted to a

maximum of 49 per cent. In addition:

(a) the head office of Qantas must always be located in Australia;

(b) the majority of Qantas' operational facilities must be located in Australia;

(d) at a meeting of the Board of Directors of Qantas, the director presiding at the meeting (however described) must be an Australian citizen; and

(e) Qantas is prohibited from taking any action to become incorporated outside Australia.

ANNEX I

SCHEDULE OF BRUNEI DARUSSALAM

INTRODUCTORY NOTES

1. In the interpretation of an entry in this Annex, all elements of the entry shall be considered, where the Description sets out the non-conforming measure for which the entry is made.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Measures: Companies Act (Chapter 39)

Business Names Act (Chapter 92)

Miscellaneous Licences Act (Chapter 127)

Co-operative Societies Act (Chapter 84)

Employment Agencies Order 2004

Administrative Measures and Guidelines

Description: Investment

1. Sole Proprietors and Cooperative Societies

Foreign nationals may not establish sole proprietorships or cooperative societies.

2. Partnerships

Foreign nationals may not establish a partnership, except with the written approval of the Registrar of Business Names.

3. Company Directorship

A foreign national may not sit on the board of directors of an enterprise established in Brunei Darussalam unless one of the two directors or, where there are more than two directors, at least two of them shall be ordinarily resident in Brunei Darussalam. For the purposes of this entry, a foreign national shall apply to the Ministry of Finance in order to be considered as being "ordinarily resident in Brunei Darussalam".

Sector: Manufacturing and Services Incidental to Manufacturing Obligations Concerned: Performance Requirements (Article 9.10)

Measures: Brunei Darussalam Long-Term Development Plan Administrative Measures and Guidelines

Description: Investment

Foreign investors may not utilise sites under the control of the Ministry of Primary Resources and Tourism and the Brunei Economic Development Board for any manufacturing and services incidental to manufacturing activities unless they comply with the following:

(a) to purchase, use, or accord a preference to goods produced in Brunei Darussalam, to purchase goods from local suppliers; or

(b) to transfer technology or other proprietary knowledge to persons in Brunei Darussalam, as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam.

Sector: Agriculture and Services Incidental to Agriculture

Obligations Concerned: Performance Requirements (Article 9.10)

Measures: Brunei Darussalam Long-Term Development Plan Administrative Measures and Guidelines

Description: Investment

Foreign investors may not utilise sites under the control of the Department of Agriculture, Ministry of Primary Resources and Tourism, for any agriculture and services incidental to agriculture activities unless they comply with these requirements:

(a) to purchase, use or accord a preference to goods produced in Brunei Darussalam, or to purchase goods from local suppliers;

(b) to achieve a given level or percentage of domestic content; or

as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam.

Sector: Fisheries and Services Incidental to Fisheries

Obligations Concerned: Performance Requirements (Article 9.10)

Measures: Brunei Darussalam Long-Term Development Plan Administrative Measures and Guidelines

Description: Investment

Foreign investors may not utilise sites under the control of the Department of Fisheries, Ministry of Primary Resources and Tourism, for any fisheries and services incidental to fisheries activities unless they comply with requirements to purchase, use or accord a preference to goods produced in Brunei Darussalam, or to purchase goods from local suppliers, or to comply with any requirement to transfer technology or other proprietary knowledge, as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam.

Sector: Forestry and Services Incidental to Forestry

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Measures: National Forestry Policy (1990)

Brunei Darussalam Long-Term Development Plan

Administrative Measures and Guidelines (Strategic Plan 2004 – 2023)

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals or enterprises shall not establish an enterprise to undertake activities related to forestry or services incidental to forestry:

(a) except through a joint venture with a Brunei national or Bruneian enterprise in which the foreign national or enterprise does not own more than 70 per cent equity; and

(b) unless they comply with any performance requirements which may be imposed, including a requirement to transfer technology or other proprietary knowledge, as long as such requirement does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam.

2. For greater certainty, this entry does not apply to logging activities.

Sector: Construction Services

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Local Presence (Article 10.6)

Measures: Architects, Professional Engineers and Quantity Surveyors Order 2011

Building Control Order 2011 (Draft)

Building Control Regulations (Draft)

Procedures of Contractors and Suppliers Registration,

Ministry of Development (Edition 2009)

Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises are not allowed to supply construction services such as: general construction work for building services, general construction work for civil engineering, installation and assembly work services, building completion and finishing work services, except mining, and mechanical engineering services, unless:

(a) through an enterprise established in Brunei Darussalam;

(b) they register for either Certificate A or Certificate B, as a contractor or supplier; or

(c) they comply with any requirement to transfer technology or other proprietary knowledge to persons in Brunei Darussalam as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam.

2. In the case of Certificate A, a foreign national or enterprise may not own equity shareholding other than what is prescribed in the table below, in any enterprise that applies to be registered as a contractor or supplier:

3. For greater certainty, Certificate A refers to certificates which are required for participating in government and private projects, whilst Certificate B refers to certificates which are required for participating in private projects only.

Sector: Environmental Services

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Local Presence (Article 10.6)

Measures: Pollution Control Guidelines for Industrial Development of Brunei Darussalam

Planning Guidelines for Earthworks Development (Focus on Environmental Sensitive Area) 2009 Planning Guidelines and Standards for Industrial Development 2010

Environmental Impact Assessment Order 2011 (Draft)

Environmental Protection and Management Order 2012

Hazardous Waste (Control of Export, Import and Transit)

Order 2011 (Draft)

Hazardous Waste (Control of Export, Import and Transit)

Regulations (Draft)

Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises are not allowed to provide consultancy services on environmental protection and management; waste management services; landscape design management and maintenance services and janitorial services, roadside and cleaning works services, unless:

(a) they are established as an enterprise in Brunei Darussalam;

(b) they register for either Certificate A or Certificate B, as a contractor or supplier; or

(c) they comply with any requirement to transfer technology or other proprietary knowledge to persons in Brunei Darussalam as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of the technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam.

Sector: Business Services

Sub-Sector: Auditing services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Measures: Companies Act (Chapter 39)

Accountants Order 2010

Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises may not establish financial auditing enterprises in Brunei Darussalam, except through a partnership or joint venture with at least one authorised Bruneian auditor.

2. If they are not established in Brunei Darussalam, foreign nationals and enterprises may not provide financial auditing services in Brunei Darussalam, unless:

(a) authorised by the Ministry of Finance; or

(b) through a locally established auditor or enterprise provided that they are authorised by the Ministry of Finance.

3. For greater certainty, the term "authorised" refers to a qualified person who has been authorised by the Ministry of Finance to provide financial auditing services.

Sector: Telecommunication Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Measures: Telecommunications Order 2001

AiTi Operational Framework

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises may not provide telecommunication services for which Brunei Darussalam requires a licence in the territory of Brunei Darussalam, unless:

(a) they maintain a physical business presence in Brunei Darussalam;

(b) they provide such services through a commercial arrangement with a licensed operator in Brunei Darussalam; and

(c) where so required, they locate their transmission equipment used for the provision of public telecommunications networks or supply of public telecommunications services within Brunei Darussalam.

2. Except where specifically approved by the Ministry of Communications, foreign nationals and enterprises may not own more than 51 per cent equity shareholding in any telecommunication enterprises. The approval process for exceeding this 51 per cent threshold shall be based on objective criteria and be implemented in an impartial manner.

3. Foreign nationals and enterprises may not undertake activities related to telecommunication services unless they comply with any performance requirements that may be imposed. Such performance requirements shall not include a requirement to purchase domestic telecommunications equipment.

4. For greater certainty, telecommunication services means any services for telecommunications, which means a transmission, emission or reception of signs, signals, writing, images, sounds or intelligence of any nature by wire, radio, optical or other electro-magnetic systems whether or not such signs, signals, writing, images, sounds or intelligence have been subjected to rearrangement, computation or other processes by any means in the course of their transmission, emission or reception; but excludes any broadcasting service.

Sector: Business Services

Sub-Sector: Architectural services

Engineering services

Integrated engineering services

Quantity surveying services

Related scientific and technical consulting services

Surveying services

Urban planning and landscape services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Measures: Architects, Professional Engineers and Quantity Surveyors Order 2011

Licensed Land Surveyors Act (Chapter 100)

Licensed Land Surveyors (Amendment) Order (Draft)

Licensed Land Surveyors Regulations (Draft)

Town Planners Registration Order (Draft)

Town Planners (Forms and Fees) Rules (Draft)

Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises may not supply

architectural services, engineering services, integrated

engineering services or quantity surveying services, unless:

(a) they are resident in Brunei Darussalam for at least 90 days per calendar year and are registered as an architect, professional engineer or quantity surveyor in that sector with Brunei Darussalam Board of Architects, Professional Engineers and Quantity Surveyors;

(b) if they are not resident in Brunei Darussalam, through a local enterprise where the services suppliers are registered as an architect, professional engineer or quantity surveyor and hold a practising certificate in that sector with Brunei Darussalam Board of Architects, Professional Engineers and Quantity Surveyors; or

(c) through an enterprise established in Brunei Darussalam that is a partnership or joint venture with at least one Brunei national who is registered as an architect, professional engineer or quantity surveyor and holds a practising certificate in that sector with Brunei Darussalam Board of Architects, Professional Engineers and Quantity Surveyors.

2. Foreign nationals and enterprises may not provide urban planning and landscape services, related scientific and technical consulting services, and surveying services, unless:

(a) they are resident in Brunei Darussalam for at least 90 days per calendar year and are registered as a planner or surveyor in that sector with the Ministry of Development;

(b) if they are not resident in Brunei Darussalam, through a local enterprise where the services suppliers are registered as planner or surveyor in that sector with the Ministry of Development; or

(c) through an enterprise established in Brunei Darussalam that is a partnership or joint venture with at least one Brunei national who is registered as a planner or surveyor in that sector with the Ministry of Development.

Sector: Business Services

Sub-Sector: Unarmed guard services

Obligations Concerned: Local Presence (Article 10.6)

Measures: Security Agencies Act (Chapter 187)

Administrative Measures and Guidelines

Description: Cross-Border Trade in Services

Foreign nationals and enterprises may not provide unarmed guard services unless they establish an enterprise in Brunei Darussalam.

Sector: Business Services

Sub-Sector: Placement and supply services of personnel Employment agencies

Obligations Concerned: National Treatment (Article 9.4)

Local Presence (Article 10.6)

Measures: Employment Agencies Order 2004

Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

A foreign national or enterprise may not supply, or establish an enterprise to supply, services to place or supply personnel, or an employment agency, except through a local agent or enterprise registered with the Department of Labour, Ministry of Home Affairs.

Sector: Business Licences

Obligations Concerned: National Treatment (Article 9.4)

Measures: Miscellaneous Licences Act (Chapter 127) Municipal Board Act (Chapter 57)

Municipal Board Enactment 1920

Road Traffic Act (Chapter 68)

Public Entertainment Act (Chapter 181)

Administrative Measures and Guidelines

Description: Investment

1. A "Business Licence" may only be granted to a Brunei national.

2. For greater certainty this entry is limited to the issuance of "Business Licences" for the operation of commercial properties identified in the listed measures. Business Licences are required for the enforcement of health and safety regulations, and do not restrict the participation of foreign nationals in any activity where such a Business Licence is required, unless otherwise provided for in this Schedule.

Sector: Private Health and Social Services

Sub-Sector: General medical practitioners

Specialised medical practitioners

Dental practitioners

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Measures: Medical Practitioners and Dentists Act (Chapter 112)

Description: Cross-Border Trade in Services

A foreign national may not establish a private practice for the provision of general medical, specialised medical or dental services unless the foreign national has worked in Brunei Darussalam for at least six cumulative years as a general medical, specialised medical or dental practitioner, which shall include three years of clinical service in a public hospital, health centre or clinic under the Ministry of Health.

Sector: Tourism and Travel Related Services

Sub-Sector: Travel agents

Tour operator services

Obligations Concerned: National Treatment (Article 9.4)

Measures: Travel Agents Act (Chapter 103)

Administrative Measures and Guidelines

Description: Investment

1. Foreign nationals and enterprises may not establish a travel agency in Brunei Darussalam.

2. Foreign nationals and enterprises may not own more than 70 per cent equity shareholding in any enterprise established in Brunei Darussalam providing tour operator services.

Sector: Tourism

Sub-Sector: Hotels/Boarding House/Lodging

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Measures: Miscellaneous Licences Act (Chapter 127)

Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

Foreign nationals and enterprises may not establish hotels, boarding houses or lodgings in Brunei Darussalam, unless:

(a) through a joint venture with a Brunei national or Bruneian enterprise;

(b) the majority of senior managers in the joint venture are Brunei nationals; and

(c) they comply with any commitment or understanding to purchase, use or accord a preference to goods produced in Brunei Darussalam, or to purchase goods from local suppliers.

Sector: Mining and Quarrying of sand (apart from silica sand) and gravel, and Services incidental to Mining and Quarrying of sand and gravel

Obligations Concerned: National Treatment (Article 9.4)

Measures: Mining Act (Chapter 42)

Administrative Measures and Guidelines

Description: Investment

1. Unless authorised to do so by the Ministry of Development, a foreign national may not establish an enterprise to mine or quarry for sand (apart from silica sand) or gravel, or provide any services incidental to such mining and quarrying of sand or gravel.

2. Any sand (apart from silica sand) or gravel mined or quarried in Brunei Darussalam is only allowed to be used within Brunei Darussalam and is not allowed to be exported.

Sector: Trade Fair and Exhibition Organising Services

Obligations Concerned: National Treatment (Article 10.3)

Measures: Public Entertainment Act (Chapter 181)

Description: Cross-Border Trade in Services

A foreign national may not provide trade fair and exhibition organising services in Brunei Darussalam except with the written approval of the Ministry of Home Affairs or Ministry of Primary Resources and Tourism, which includes the requirement of supporting documents from the relevant government agencies or diplomatic representative office of that respective foreign national, depending on the sector involved.

Sector: Transport Services

Sub-Sector: Rail transport services

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Measures: Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

Foreign nationals and enterprises may not provide rail transport services in Brunei Darussalam, unless:

(a) through an enterprise established in Brunei Darussalam that is a joint venture, where the foreign national or enterprise does not own more than 49 per cent equity shareholding in the joint venture;

(b) they comply with any performance requirements imposed, including requirements to transfer a particular technology or other proprietary knowledge as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam; or

Sector: Transport Services

Sub-Sector: Maritime passenger transport services

Maritime freight transport services

Services auxiliary to maritime transport

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Measures: Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises may not provide maritime passenger and freight transport services as Brunei Darussalam-flagged vessels in Brunei Darussalam, unless:

(a) they register such vessels under the Brunei Darussalam flag through an enterprise established in Brunei Darussalam that is a joint venture, where the foreign national or enterprise does not own more than 40 per cent equity shareholding in the joint venture;

(b) they comply with any performance requirements imposed, including a requirement to transfer a particular technology or other proprietary knowledge as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology or proprietary knowledge and is not for the purposes of commercial exploitation by Brunei Darussalam; and

2. Foreign nationals and enterprises may not provide services auxiliary to maritime transport services at Muara Port, unless:

(a) through an enterprise established in Brunei Darussalam that is a joint venture, where the foreign national or enterprise does not own more than 51 per cent equity shareholding in

any such enterprise providing services auxiliary to maritime transport services; and

(b) a majority of the senior managers in any such enterprise established are Brunei nationals.

3. The number of enterprises in Brunei Darussalam providing maritime passenger and freight transport services and services auxiliary to maritime transport at Muara Port may be subject to needs-based quantitative limits.

Sector: Transport Services

Sub-Sector: Specialty air services (flight training organisation)

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Measures: Administrative Measures and Guidelines

Description Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises may not provide

specialty air transport services (flight training) in Brunei Darussalam, unless:

(b) they comply with any performance requirements imposed, including a requirement to transfer a particular technology or other proprietary knowledge as long as such requirement to transfer technology or other proprietary knowledge does not unreasonably prejudice the legitimate interests of the owner of technology and is not for the purpose of commercial exploitation by Brunei Darussalam; and

2. The number of enterprises in Brunei Darussalam providing specialty air services (flight training) may be subject to needs-based quantitative limits.

Sector: Communication Services

Sub-Sector: Courier services, including express delivery services

Obligations Concerned: National Treatment (Article 9.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Measures: Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

Foreign nationals and enterprises may not supply courier services, including express delivery services, in Brunei Darussalam, unless through an enterprise established in Brunei Darussalam that is a joint venture, to provide such services.

Sector: Business Services

Sub-Sector: Professional services

Legal services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Measures: Legal Profession Act (Chapter 132)

Description: Investment and Cross-Border Trade in Services

1. A foreign national or service supplier may not supplylegal services in Brunei Darussalam except in relation to international law or home country law.

2. A foreign national or service supplier may not establish an enterprise for the supply of legal services in Brunei Darussalam in relation to international law or home country law, except through a partnership with at least one registered Bruneian advocate and solicitor.

Sector: Education Services

Sub-Sector: Higher education services

International schools

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Measures: Education Order (Chapter 210)

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals and enterprises may not supply

higher education services through a commercial presence in Brunei Darussalam, unless:

(a) through an enterprise established in Brunei Darussalam that is a joint venture, where the foreign national or enterprise does not own more than 51 per cent equity shareholding in the joint venture;

2. Foreign enterprises are not allowed to be set up as branches or associate institutions unless authorised by the Minister of Education.

3. Foreign nationals and enterprises may not establish international schools in Brunei Darussalam unless authorised by the Minister of Education.

Sector: Land

Obligations Concerned: National Treatment (Article 9.4)

Measures: Land Code (Chapter 40)

Land Acquisition (Chapter 41)

Land Code (Strata) Act (Chapter 189)

Description: Investment

Subject to review and approval by the relevant committee (Komiti bagi Mempertimbangkan Permohonan Pindahmilik Strata) chaired by the Minister of Development, or his authorised representative, a foreign national or enterprise:

(a) may own or lease non-landed property (strata title) for up to a maximum of:

(i) 99 years where the property is situated on land which is held in perpetuity (freehold); or

(ii) one day less than the term of the lease where the land held is leasehold land; and

(b) may not own or lease more than 70 per cent of the individual strata titles in a single property.

Sector: Petroleum

Obligations Concerned: National Treatment (Article 9.4)

Measures: Petroleum Mining Act (Chapter 44) (the Act) Brunei National Petroleum Company Sendirian Berhad Order, 2002

Petroleum (Pipe-Lines) Act (Chapter 45)

Administrative Measures and Guidelines

Description: Investment

1. Under the Act, the State Party has exclusive ownership of and rights over petroleum in the territory of Brunei Darussalam. The State Party presently includes Brunei National Petroleum Company Sdn. Bhd. ("PetroleumBRUNEI"). Private companies may obtain exploration, exploitation, development and production rights for petroleum through petroleum mining Agreements with the State Party.

2. The State Party may require that investment in Brunei Darussalam by an investor of another Party take the form of a joint venture or a similar arrangement with a Bruneian enterprise, which may include PetroleumBRUNEI or any of its subsidiaries.

3. The State Party may require as a contractual term that, during the exploration or development period, all relevant costs with respect to the maximum participating interest of the Bruneian enterprise be borne by the partner that is an investor of another Party. Consequently, on the expiration of the carry interest period, the Bruneian enterprise will bear the costs of future operations in proportion to its participating interests in the petroleum mining Agreement.

4. The State Party may require as a contractual term that a Bruneian enterprise may acquire a participating interest, or increase its participating interest, in the joint venture or similar arrangement upon the occurrence of a stipulated event.

5. The terms "State Party", "petroleum mining Agreement" and "petroleum" used herein shall have the meanings ascribed to them under the Act.

Sector: Petroleum

Obligations Concerned: Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11)

Measures: Administration Measures and Guidelines

Description: Investment

Foreign enterprises acting as operators in the upstream, midstream and downstream oil and gas industry may be:

(a) contractually required to provide a portion of natural gas or manufactured petrochemical products and their derivatives in Brunei Darussalam for domestic use; or

(b) required to appoint a certain percentage of Brunei nationals to management positions.

Sector: Services supporting the petroleum industry

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Measures: Local Business Development Directive No. 2 of the Energy Department, Prime Minister's Office

Description: Investment and Cross-Border Trade in Services

1. A foreign national or enterprise shall not supply, or establish an enterprise to supply services in the upstream, midstream and downstream petroleum industry in the services listed in Appendix I – A, unless as may otherwise be authorised by the Government of Brunei Darussalam.

2. Where a foreign national or enterprise has a contract for the provision of services listed in Appendix I – A, it may only provide such services through a Brunei national or Bruneian enterprise.

Sector: Services supporting the petroleum industry

Obligations Concerned: Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Measures: Local Business Development Directive No. 2 of the Energy Department, Prime Minister's Office

Description: Investment and Cross-Border Trade in Services

1. A foreign national or enterprise may supply, or establish an enterprise to supply services in the upstream, midstream and downstream petroleum industry other than

those listed in Appendix I – A.

2. Where the total approved contract value for the supply of services in paragraph 1 is more than BND 10 million, the foreign national or enterprise must comply with the following requirements:

(a) appoint at least 40 per cent or more, Brunei nationals to the enterprise's management positions in Brunei Darussalam within the duration of the contract period;

(b) accord a preference to goods and services produced in Brunei Darussalam so that at least 40 per cent, or more, of goods and services are produced or purchased in Brunei

Darussalam within the duration of the contract period; and

(c) establish or maintain a representative office or any form of enterprise, or be resident in Brunei Darussalam, unless as may otherwise be authorised by the Government of Brunei Darussalam.

Sector: Services supporting the petroleum industry

Sub-Sector: Operation of Marine Supply Base and Shipyard

Obligations Concerned: National Treatment (Article 9.4)

Market Access (Article 10.5)

Measures: Administrative Measures and Guidelines

Description: Investment and Cross-Border Trade in Services

1. Foreign nationals or enterprises may not establish a marine supply base or shipyard to supply services to the oil and gas industry except through a joint venture with a Brunei national or Bruneian enterprise, and may not own more than 49 per cent equity shareholding in the joint venture.

2. The number of marine supply bases or shipyards in Brunei Darussalam may be subject to needs-based quantitative limits.

APPENDIX I – A

Work Categories

Corporate Services

1. Provision of environmental health services, including pest prevention services. This does not include advisory and consultancy services

2. Provision of media publication services

3. Provision of event management services

4. Provision of travel arrangements for staff (other than those booked online)

Engineering Design

1. Provision of quantity surveying services

Facility Management

1. Provision of supply, rental, installation and maintenance of air-conditioners for onshore and offshore areas

2. Provision of catering, cleaning, laundry and recreational services at offshore facilities

3. Provision of housekeeping and catering services for onshore oil and gas facilities including lodging

4. Provision of building and maintenance services for staff housing 5. Provision of electrical maintenance services for staff housing

6. Provision of landscape maintenance services

7. Provision of packing and transportation services for staff

8. Provision of office support services

9. Provision of security services

10. Provision of warehousing services for storage

11. Provision of maintenance services for industrial buildings

12. Provision of civil infrastructure services including maintenance, construction, renovation and demolition

13. Provision of courier services to worldwide locations and within Brunei

Inspection Services

1. Provision of specialist inspection and non-destructing testing services

Instrumentation – Aftermarket

1. Provision of after-sales maintenance services for instrumentation equipment and spare parts

Land

1. Provision of spot or term hire of light vehicles

2. Provision of spot or term hire of medium/heavy vehicles. This does not include specialised or special-purpose vehicles

3. Provision of material handling and manpower services

4. Provision of material clearing and forwarding services for air and sea freight

5. Provision of road fuel tankers and maintenance services for transport of petroleum products domestically

Marine Vessels

1. Provision of chartered anchor handling tugs

2. Provision of chartered barges for accommodation and working deck space

3. Provision of chartered Liquefied Natural Gas (LNG) tugs to support berthing of LNG vessels

4. Provision of chartered contingencies utility craft to support safety coverage 5. Provision of chartered fast crew boats for passenger transfer and light cargo

6. Provision of chartered vessels for general purpose launches, area launches, standby launches

7. Provision of chartered supply vessels

Offshore Maintenance Services

1. Provision of offshore construction and maintenance services including work pack preparation, project preparation, installation, repair and maintenance work

2. Provision of blasting and painting services for offshore facilities 3. Provision of scaffolding equipment and maintenance activities for offshore platforms

Onshore Fabrication

1. Provision of onshore fabrication services to support onshore brownfield projects and minor maintenance activities

2. Provision of onshore fabrication services to support offshore structures 3. Provision of onshore construction services

Onshore Maintenance Services

1. Provision of fabrication, installation and maintenance of onshore production support facilities including landfield maintenance and construction, tank maintenance and construction, project support for brownfield/greenfield projects and other associated services

2. Provision of scaffolding for onshore work

3. Provision of well tie-in services for onshore wells

4. Provision of workshop services including maintenance, repair, testing of equipment

Rotating equipment – aftermarket

1. Provision of after-sales maintenance services for rotating equipment and spare parts

Static equipment – aftermarket

1. Provision of after-sales maintenance services for static equipment and spare parts

Training

1. Provision of basic management, supervisory and development training. Training activities are either non-technical (such as soft skills) or minimal technical training. This does not include higher or tertiary education services, such as specialised technical training and engineering expertise.

Well Construction Services

1. Provision of chemicals and brine mixing services to support drilling activities 2. Provision of low-end drilling tools and equipment

3. Provision of post-drilling platform and tank cleaning services

Well Intervention

1. Provision of coil tubing services and equipment for onshore activities

2. Provision of hoist services for in support of onshore wells workover operations and related activities

3. Provision of equipment and personnel for well abandonment services 4. Provision of well integrity and maintenance services

Product Categories

1. Supply of materials and equipment for civil works including building material and hardware, small tools, textiles and clothing

2. Supply of flat-rack containers for storage and transportation

3. Supply of material handling accessories including wire ropes, cordage chains and tackles

4. Supply of non-office materials and equipment including furniture and household requisites

5. Supply of office materials and equipment including office machines, stationery and consumables

6. Supply of vehicles and vehicles accessories including bicycles. This does not include specialised or special-purpose vehicles.

7. Supply of abrasives, polishes and compounds

8. Supply of lubricants including oil products, greases and fuel additives

9. Supply of workshop tools and accessories including machine and pneumatic tools and accessories, welding and spraying equipment

ANNEX I

SCHEDULE OF CANADA

INTRODUCTORY NOTES

1. Description provides a general non-binding description of the measure for which the entry is made.

2. Obligations Concerned specifies the obligations referred to in Article 9.12.1 (Non Conforming Measures) and Article 10.7.1 (Non-Conforming Measures) that do not apply to the listed measures.

3. In the interpretation of an entry, all elements of an entry shall be considered. An entry shall be interpreted in the light of the relevant provisions of the Chapters against which the entry is taken. To the extent that:

(a) the Measures element is qualified by a liberalisation commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and

(b) the Measures element is not so qualified, the Measures element prevails over other elements, unless a discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element prevails, in which case the other elements prevail to the extent of that discrepancy.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.) Investment Canada Regulations, SOR/85-611, as qualified by paragraphs 8 through 12 of the Description element

Description: Investment

1. Except as set out in paragraphs 3 and 7, the Director of Investments will review a direct "acquisition of control", as defined in the Investment Canada Act, of a Canadian business by an investor of an original signatory for which the Agreement has entered into force pursuant to Article 30.5 (Entry into Force) if the value of the Canadian business is not less than C$1.5 billion, adjusted in accordance with the applicable methodology in January of each subsequent year as set out in the Investment Canada Act.

2. Notwithstanding the definition of "investor of a Party" in Article 9.1 (Definitions), only investors who are nationals of an original signatory for which the Agreement has entered into force pursuant to Article 30.5 (Entry into Force), or entities controlled by nationals of those Parties, as provided for in the Investment Canada Act, may benefit from the higher review threshold.

3. The higher threshold in paragraph 1 does not apply to a direct "acquisition of control" of a Canadian business by a state owned enterprise of a Party. Such acquisitions are subject to review by the Director of Investments if the value of the Canadian business is not less than C$369 million, adjusted in accordance with the applicable methodology in January of each subsequent year as set out in the Investment Canada Act.

4. An investment subject to review under the Investment Canada Act may not be implemented unless the Minister responsible for the Investment Canada Act advises the applicant that the investment is likely to be of net benefit to Canada. This determination is made in accordance with six factors described in the Act, summarised as follows:

(a) the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on the use of parts, components and services produced in Canada, and on exports from Canada;

(b) the degree and significance of participation by Canadians in the investment;

(c) the effect of the investment on productivity, industrial efficiency, technological development and product innovation in Canada;

(d) the effect of the investment on competition within an industry or industries in Canada;

(e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or egislature of any province likely to be significantly affected by the investment; and

(f) the contribution of the investment to Canada's ability to compete in world markets.

5. In making a net benefit determination, the Minister, through the Director of Investments, may review plans under which the applicant demonstrates the net benefit to Canada of the proposed acquisition. An applicant may also submit undertakings to the Minister in connection with a proposed acquisition that is the subject of review. In the event of non compliance with an undertaking by an applicant, the Minister may seek a court order directing compliance or any other remedy authorised under the Investment Canada Act.

6. A non-Canadian who establishes or acquires a Canadian business, other than those that are subject to review as described above, must notify the Director of Investments.

7. The review thresholds set out in paragraphs 1 and 3 do not apply to an acquisition of a cultural business.

8. In addition, the specific acquisition or establishment of a new business in designated types of business activities relating to Canada's cultural heritage or national identity, which are normally notifiable, may be subject to review if the Governor in-Council authorises a review in the public interest.

9. An indirect "acquisition of control" of a Canadian business by an investor of a Party in a sector other than a cultural business is not reviewable.

10. Notwithstanding Article 9.10 (Performance Requirements), Canada may impose requirements, or enforce a commitment or undertaking in connection with the establishment, acquisition, expansion, conduct or operation of an investment of an investor of a Party or of a non-Party for the transfer of technology, production process or other proprietary knowledge to a national or enterprise, affiliated to the transferor, in Canada in connection with the review of an acquisition of an investment under the Investment Canada Act.

11. Except for requirements, commitments or undertakings relating to technology transfer as set out in paragraph 10 of this entry, Article 9.10 (Performance Requirements) applies to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act.

12. For the purposes of this entry: a "non-Canadian" means an individual, government or agency thereof or an entity that is not Canadian; and "Canadian" means a Canadian citizen or permanent resident, a government in Canada or agency thereof, or a Canadian-controlled entity as described in the Investment Canada Act.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Canada Business Corporations Act, R.S.C. 1985, c. C-44 Canada Business Corporations Act Regulations, SOR/2001-512

Canada Cooperatives Act, S.C.1998, c1

Canada Cooperatives Regulations, SOR/99-256

Description: Investment

1. A corporation or distributing cooperative may place constraints on the issue, transfer and ownership of shares in a federally incorporated corporation or cooperative. The object of those constraints is to permit a corporation or cooperative to meet Canadian ownership or control requirements, under certain laws set out in the Canada Business Corporations Act Regulations and Canada Cooperatives Regulations, in sectors where ownership or control is required as a condition to operate or to receive licences, permits, grants, payments or other benefits. In order to maintain certain Canadian ownership levels, a corporation is permitted to sell shareholders' shares without the consent of those shareholders, and to purchase its own shares on the open market.

2. The Canada Cooperatives Act provides that constraints may be placed on the issue or transfer of investment of shares of a cooperative to persons not resident in Canada to permit cooperatives to meet Canadian ownership requirements to obtain a licence to carry on a business, to become a publisher of a Canadian newspaper or periodicals or to acquire shares of a financial intermediary and in sectors where ownership or control is a required condition to receive licences, permits, grants, payments and other benefits. Where the ownership or control of investment of shares would adversely affect the ability of a cooperative to maintain a level of Canadian ownership or control, the Canada Cooperatives Act provides for the limitation of the number of investment shares that may be owned or for the prohibition of the ownership of investment shares.

3. For the purposes of this entry, "Canadian" means "Canadian" as defined in the Canada Business Corporations Act Regulations, or in the Canada Cooperatives Regulations.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Citizenship Act, R.S.C. 1985, c. C-29

Foreign Ownership of Land Regulations, SOR/79-416

Description: Investment

1. The Foreign Ownership of Land Regulations are made pursuant to the Citizenship Act and the Alberta Agricultural and Recreational Land Ownership Act, RSA 1980, c. A-9. In Alberta, an ineligible person or foreign-owned or -controlled corporation may only hold an interest in controlled land consisting of a maximum of two parcels containing, in the aggregate, a maximum of 20 acres.

2. For the purposes of this entry, "ineligible person" means:

(a) a natural person who is not a Canadian citizen or permanent resident;

(b) a foreign government or agency thereof; or

"controlled land" means land in Alberta but does not include:

(a) land of the Crown in right of Alberta;

(b) land within a city, town, new town, village or summer village; and

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Air Canada Public Participation Act, R.S.C. 1985, c. 35 (4th Supp.)

Canadian Arsenals Limited Divestiture Authorization Act, S.C. 1986, c. 20

Eldorado Nuclear Limited Reorganization and Divestiture Act, S.C. 1988, c. 41

Nordion and Theratronics Divestiture Authorization Act, S.C. 1990, c. 4

Description: Investment

1. A "non-resident" or "non-residents" may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For some companies the restrictions apply to individual shareholders, while for others the restrictions may apply in the aggregate. The restrictions are as follows:

(a) Air Canada: 25 per cent in the aggregate;

(b) Cameco Limited (formerly Eldorado Nuclear Limited): 15 per cent per non-resident natural person, 25 per cent in the aggregate;

(d) Theratronics International Limited: 49 per cent in the aggregate; and

(e) Canadian Arsenals Limited: 25 per cent in the aggregate.

2. For the purposes of this entry, "non-resident" includes:

(a) a natural person who is not a Canadian citizen and not ordinarily resident in Canada;

(b) a corporation incorporated, formed or otherwise organised outside Canada;

(c) the government of a foreign State or a political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government;

(d) a corporation that is controlled directly or indirectly by an entity referred to in subparagraphs (a) through (c);

(e) a trust:

(i) established by an entity referred to in subparagraphs (b) through (d), other than a trust for the administration of a pension fund for the benefit of natural persons the majority of whom are resident in Canada; or

(ii) in which an entity referred to in subparagraphs (a) through (d) has more than 50 per cent of the beneficial interest; and

(f) a corporation that is controlled directly or indirectly by a trust referred to in subparagraph

(e).

Sector: All

Sub-Sector:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Export and Import Permits Act, R.S.C. 1985, c. E-19

Description: Cross-Border Trade in Services

Only individuals ordinarily resident in Canada, enterprises having their head offices in Canada or branch offices in Canada of foreign enterprises may apply for and be issued import or export permits or transit authorisation certificates for goods and related services subject to controls under the Export and Import Permits Act.

Sector: Business Service Industries

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.) Customs Brokers Licensing Regulations, SOR/86-1067

Description: Investment and Cross-Border Trade in Services To be a licensed customs broker in Canada:

(a) a natural person must be a Canadian national;

(b) a corporation must be incorporated in Canada with a majority of its directors being Canadian nationals; and

incorporated in Canada with a majority of their directors being Canadian nationals.

Sector: Business Service Industries

Sub-Sector: Duty free shops

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.) Duty Free Shop Regulations, SOR/86-1072

Description: Investment and Cross-Border Trade in Services

1. To be a licensed duty free shop operator at a land border crossing in Canada, a natural person must:

(a) be a Canadian national;

(b) be of good character;

(d) have resided in Canada for at least 183 days of the year preceding the year of application for the licence.

2. To be a licensed duty free shop operator at a land border crossing in Canada, a corporation must:

(a) be incorporated in Canada; and

(b) have all of its shares beneficially owned by Canadian nationals who meet the requirements of paragraph 1.

Sector: Business Service Industries

Sub-Sector: Examination services relating to the export and import of cultural property

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Cultural Property Export and Import Act, R.S.C. 1985, c. C-51

Description: Cross-Border Trade in Services

Only a "resident of Canada" or an "institution" in Canada may be designated as an "expert examiner" of cultural property for the purposes of the Cultural Property Export and Import Act. A "resident" of Canada is an individual who is ordinarily resident in Canada, or a corporation that has its head office in Canada or maintains one or more establishments in Canada to which employees employed in connection with the business of the corporation ordinarily report for work. An "institution" is an institution that is publicly owned and operated solely for the benefit of the public, that is established for educational or cultural purposes and that conserves objects and exhibits them.

Sector: Professional Services

Sub-Sector: Patent agents, patent agents supplying legal advisory and representation services

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Patent Act, R.S.C. 1985, c. P-4 Patent Rules, SOR/96-423

Description: Cross-Border Trade in Services

To represent a person in the prosecution of a patent application or in other business before the Patent Office, a patent agent must be resident in Canada and registered by the Patent Office.

Sector: Professional Services

Sub-Sector: Trade-mark agents, trade-mark agents supplying legal advisory and representation services in statutory procedures

Obligations Concerned Local Presence (Article 10.6)

Level of Government: Central

Measures: Trade-marks Act, R.S.C. 1985, c. T-13

Trade-marks Regulations, SOR/96-195

Description: Cross-Border Trade in Services

To represent a person in the prosecution of an application for a trade-mark or in other business before the Trade-marks Office, a trade-mark agent must be resident in Canada and registered by the Trade-marks Office.

Sector: Energy

Sub-Sector: Oil and Gas

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Canada Petroleum Resources Act, R.S.C. 1985, c. 36 (2nd Supp.)

Territorial Lands Act, R.S.C. 1985, c. T-7

Federal Real Property and Federal Immovables Act, S.C. 1991, c. 50

Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28

Description: Investment

1. This entry applies to production licenses issued for "frontier lands" and "offshore areas" (areas not under provincial jurisdiction) as defined in the applicable measures.

2. A person who holds an oil and gas production licence or shares therein must be a corporation incorporated in Canada.

Sector: Energy

Sub-Sector: Oil and Gas

Obligations Concerned: Performance Requirements (Article 9.10) Local Presence (Article 10.6)

Level of Government: Central

Measures: Canada Oil and Gas Production and Conservation Act, R.S.C. 1985, c. O-7, as amended by Canada Oil and Gas Operations Act, S.C. 1992, c. 35

Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28

Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Measures implementing the Canada-Yukon Oil and Gas Accord, including the Canada-Yukon Oil and Gas Accord Implementation Act, 1998, c.5, s.20 and the Oil and Gas Act, RSY 2002, c.162

Measures implementing the Northwest Territories Oil and Gas Accord, including implementing measures that apply to or are adopted by Nunavut as the successor territories to the former Northwest Territories

Measures implementing the Canada-Quebec Gulf of St. Lawrence Petroleum Resources Accord

Description: Investment and Cross-Border Trade in Services

1. Under the Canada Oil and Gas Operations Act, a benefits plan must be approved by the Minister responsible for the Act in order to proceed with an oil and gas development project.

2. A "benefits plan" is a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in proposed work or activity referred to in the benefits plan.

3. The benefits plan contemplated by the Canada Oil and Gas Operations Act permits the Minister responsible for the Act to impose on the applicant an additional requirement to ensure that disadvantaged individuals or groups have access to training and employment opportunities or can participate in the supply of goods and services used in proposed work activity referred to in the benefits plan.

4. Provisions continuing those set out in the Canada Oil and Gas Operations Act are included in laws which implement the Canada-Yukon Oil and Gas Accord.

5. Provisions continuing those set out in the Canada Oil and Gas Operations Act will be included in laws or regulations to implement the Northwest Territories Oil and Gas Accord and the Canada-Quebec Gulf of St. Lawrence Petroleum Resources Accord. For the purposes of this entry these accords shall be deemed, once concluded, to be existing measures.

6. The Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada - Newfoundland Atlantic Accord Implementation Act have the same requirement for a benefits plan but also require that the benefits plan ensures that:

(a) the corporation or other body submitting the plan establishes in the applicable province an office where appropriate levels of decision-making are to take place, prior to carrying out any work or activity in the offshore area;

(b) expenditures be made for research and development to be carried out in the province,

and for education and training to be provided in the province; and

(c) first consideration be given to goods produced or services supplied from within the province, where those goods or services are competitive in terms of fair market price, quality and delivery.

7. The Boards administering the benefits plan under these Acts may also require that the plan include provisions to ensure that disadvantaged individuals or groups, or corporations owned or cooperatives operated by them, participate in the supply of goods and services used in proposed work or activity referred to in the plan.

8. In addition, Canada may impose a requirement or enforce a commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a person of Canada in connection with the approval of development projects under the applicable Acts.

Sector: Energy

Sub-Sector: Oil and Gas

Obligations Concerned: Performance Requirements (Article 9.10)

Level of Government: Central

Measures: Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Hibernia Development Project Act, S.C. 1990, c. 41

Description: Investment

1. Under the Hibernia Development Project Act, Canada and the Hibernia Project Owners may enter into agreements. Those agreements may require the Project Owners to undertake to perform certain work in Canada and Newfoundland and to use their best efforts to achieve specific Canadian and Newfoundland target levels in relation to the provisions of a "benefits plan" required under the Canada-Newfoundland Atlantic Accord Implementation Act. "Benefits plans" are further described in Annex I – Canada – 17.

2. In addition, Canada may impose in connection with the Hibernia project a requirement or enforce a commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada.

Sector: Energy

Sub-Sector: Uranium

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Level of Government: Central

Measures: Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.) Investment Canada Regulations, SOR/85-611Policy on Non-Resident Ownership in the Uranium Mining Sector, 1987

Description: Investment

1. Ownership by "non-Canadians", as defined in the Investment Canada Act, of a uranium mining property is limited to 49 per cent at the stage of first production. Exceptions to this limit may be permitted if it can be established that the property is in fact "Canadian-controlled" as defined in the Investment Canada Act.

2. Exemptions from the Policy on Non-Resident Ownership in the Uranium Mining Sector are permitted, subject to approval of the Governor-in-Council, only in cases where Canadian participants in the ownership of the property are not available. Investments in properties by non-Canadians, made prior to December 23, 1987 and that are beyond the permitted ownership level, may remain in place. No increase in non-Canadian ownership is permitted.

3. In considering a request for an exemption from the Policy from an investor of an original signatory for which the Agreement has entered into force pursuant to Article 30.5 (Entry into Force), Canada will not require that it be demonstrated that a Canadian partner cannot be found.

Sector: Transportation

Sub-Sector: Air transportation

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Canada Transportation Act, S.C. 1996, c. 10 Aeronautics Act, R.S.C. 1985, c. A-2

Canadian Aviation Regulations, SOR/96-433:

Part II "Aircraft Markings & Registration";

Part IV "Personnel Licensing & Training"; and

Part VII "Commercial Air Services"

Description: Investment

1. The Canada Transportation Act, in Section 55, defines "Canadian" as: "a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection Act, a government in Canada or an agent of such a government or a corporation or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least 75 per cent, or such lesser percentage as the Governor in Council may by regulation specify, of the voting interests are owned and controlled by Canadians."

2. Regulations made under the Aeronautics Act incorporate by reference the definition of "Canadian" found in the Canada Transportation Act. These Regulations require that a Canadian operator of commercial air services operate Canadian-registered aircraft. These regulations require an operator to be Canadian in order to obtain a Canadian Air Operator Certificate and to qualify to register aircraft as "Canadian".

3. Only "Canadians" may supply the following commercial air transportation services:

(a) "domestic services" (air services between points, or from and to the same point, in the territory of Canada, or between a point in the territory of Canada and a point not in the territory of another country);

(b) "scheduled international services" (scheduled air services between a point in the territory of Canada and a point in the territory of another country) where those services have been

reserved to Canadian carriers under existing or future air services agreements;

(c) "non-scheduled international services" (non scheduled air services between a point in the territory of Canada and a point in the territory of another country) where those services have been reserved to Canadian carriers under the Canada Transportation Act; and

(d) "specialty air services" (include, but are not limited to: aerial mapping, aerial surveying, aerial photography, forest fire management, fire fighting, aerial advertising, glider towing, parachute jumping, aerial construction, helilogging, aerial inspection, aerial surveillance, flight training, aerial sightseeing and aerial crop spraying).

4. No foreign individual is qualified to be the registered owner of a Canadian-registered aircraft.

5. Further to the Canadian Aviation Regulations, a corporation incorporated in Canada, but that does not meet the Canadian ownership and control requirements, may only register an aircraft for private use where a significant majority of use of the aircraft (at least 60 per cent) is in Canada.

6. The Canadian Aviation Regulations also have the effect of limiting foreign-registered private aircraft registered to "non Canadian" corporations to be present in Canada for a maximum of 90 days per 12-month period. Such foreign-registered private aircraft would be limited to private use, as would be the case for Canadian-registered aircraft requiring a private operating certificate.

Sector: Transportation

Sub-Sector: Air transportation

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Aeronautics Act, R.S.C. 1985, c. A-2

Canadian Aviation Regulations, SOR/96-433:

Part IV "Personnel Licensing &Training";

Part V "Airworthiness";

Part VI "General Operating & Flight Rules"; and

Part VII "Commercial Air Services"

Description: Cross-Border Trade in Services

Aircraft and other aeronautical product repair, overhaul or maintenance activities required to maintain the airworthiness of Canadian-registered aircraft and other aeronautical products must be performed by persons meeting Canadian aviation regulatory requirements (i.e., approved maintenance organisations and aircraft maintenance engineers).

Certifications are not provided for persons located outside Canada, except sub-organisations of approved maintenance organisations that are themselves located in Canada.

Sector: Transportation

Sub-Sector: Land transportation

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Motor Vehicle Transport Act, R.S.C. 1985, c. 29 (3rd Supp.), as amended by S.C. 2001, c. 13

Canada Transportation Act, S.C. 1996, c.10

Customs Tariff, 1997, C.36

Description: Cross-Border Trade in Services

Only persons of Canada, using Canadian-registered and either Canadian-built or duty-paid trucks or buses, may supply truck or bus services between points in the territory of Canada.

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Canada Shipping Act, 2001, S.C. 2001, c. 26

Description: Investment and Cross-Border Trade in Services

1. To register a ship in Canada, the owner of that ship or the person who has exclusive possession of that ship must be:

(a) a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;

(b) a corporation incorporated under the domestic laws of Canada, or a province or territory; or

(c) if the ship is not already registered in another country, a corporation incorporated under the domestic laws of a country other than Canada if one of the following is acting with respect to all matters relating to the ship, namely:

(i) a subsidiary of the corporation that is incorporated under the domestic laws of Canada or a province or territory;

(ii) an employee or director in Canada of any branch office of the corporation that is carrying on business in Canada; or

(iii) a ship management company incorporated under the laws of Canada or a province or territory.

2. A ship registered in a foreign country which has been bareboat chartered may be listed in Canada for the duration of the charter while the ship's registration is suspended in its country of registry, if the charterer is:

(a) a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act; or

(b) a corporation incorporated under the domestic laws of Canada or a province or territory.

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Canada Shipping Act, 2001, S.C. 2001, C.26 Marine Personnel Regulations SOR/2007-115

Description: Cross-Border Trade in Services

Masters, mates, engineers and certain other seafarers must hold certificates granted by the Minister of Transport as a requirement of service on Canadian registered ships. Such certificates may be granted only to Canadian citizens or permanent residents.

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Pilotage Act, R.S.C. 1985, c. P-14

General Pilotage Regulations, SOR/2000-132

Atlantic Pilotage Authority Regulations, C.R.C., c. 1264

Laurentian Pilotage Authority Regulations, C.R.C., c. 1268

Great Lakes Pilotage Regulations, C.R.C., c. 1266

Pacific Pilotage Regulations, C.R.C., c. 1270

Cross-Border Trade in Services

Description:

Subject to Annex II – Canada – 12, a licence or a pilotage certificate issued by the relevant regional Pilotage Authority is required to supply pilotage services in the compulsory pilotage waters of the territory of Canada. Only Canadian citizens or permanent residents may obtain such a licence or a pilotage certificate. A permanent resident of Canada who has been issued a pilot's licence or pilotage certificate must become a Canadian citizen within five years of receipt of the licence or pilotage certificate in order to retain it.

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Shipping Conferences Exemption Act, 1987, R.S.C. 1985, c. 17 (3rd Supp.)

Description: Cross-Border Trade in Services

Members of a shipping conference must maintain jointly an office or agency in the region of Canada where they operate. A shipping conference is an association of ocean carriers that has the purpose or effect of regulating rates and conditions for the transportation by those carriers of goods by water.

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: Most-Favoured-Nation Treatment (Article 10.4) Level of Government: Central

Measures: Coasting Trade Act, S.C. 1992, c. 31

Description: Cross-Border Trade in Services

The prohibitions under the Coasting Trade Act, set out in Annex II – Canada – 10, do not apply to any vessel that is owned by the U.S. Government when used solely for the purpose of transporting goods owned by the U.S. Government from the territory of Canada to supply Distant Early Warning sites.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Regional

Measures: All existing non-conforming measures of all provinces and territories.

Description: Investment and Cross-Border Trade in Services

For purposes of transparency, Appendix I-A sets out an illustrative, non-binding list of non-conforming measures maintained at the regional level of government.

Sector: Air Transportation

Sub-Sector: Specialty air services as defined in Chapter 10 (Cross-Border Trade in Services)

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Canada Transportation Act, S.C. 1996, c. 10 Air Transportation Regulations, SOR/88-58 Canadian Aviation Regulations, SOR/96-433

Description: Cross-Border Trade in Services

Authorisation from Transport Canada is required to supply specialty air services in the territory of Canada. In determining whether to grant a particular authorisation, Transport Canada will consider among other factors, whether the country in which the applicant, if an individual, is resident or, if an enterprise, is constituted or organised, provides Canadian specialty air service operators reciprocal access to supply specialty air services in that country's territory. Any foreign service supplier authorised to supply specialty air services is required to comply with Canadian safety requirements while supplying such services in Canada.

Sector: Communications

Sub-Sector: Telecommunications transport networks and services Radiocommunications

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Existing Measures: Telecommunications Act, S.C. 1993, c. 38 Canadian Telecommunications Common Carrier Ownership and Control Regulations, SOR/94-667

Radiocommunications Act, R.S.C. 1985, c. R-2

Radiocommunication Regulations, SOR/96-484

Description: Investment

Foreign investment in facilities-based telecommunications service suppliers is restricted to a maximum, cumulative total of 46.7 per cent voting interest, based on 20 per cent direct investment and 33.3 per cent indirect investment.

Facilities-based telecommunications service suppliers must be controlled in fact by Canadians.

At least 80 per cent of the members of the board of directors of facilities-based telecommunications service suppliers must be Canadians.

Notwithstanding the restrictions described above:

(a) foreign investment is allowed up to 100 per cent for suppliers conducting operations under an international submarine cable licence;

(b) mobile satellite systems of a foreign service supplier may be used by a Canadian service supplier to supply services in Canada;

(c) fixed satellite systems of a foreign service supplier may be used to supply services between points in Canada and all points outside Canada;

(d) foreign investment is allowed up to 100 per cent for suppliers conducting operations under a satellite authorisation; and

(e) foreign investment is allowed up to 100 per cent for facilities-based telecommunications service suppliers that have revenues, including those of its affiliates, from the supply of telecommunications services in Canada representing less than 10 per cent of the total telecommunications services annual revenues in Canada. Facilities-based telecommunications service suppliers that previously had annual revenues, including those of their affiliates, from the supply of telecommunications services in Canada representing less than 10 per cent of the total telecommunications services annual revenues in Canada may increase to 10 per cent or beyond as long as the increase in such revenues did not result from the acquisition of control of, or the acquisition of assets used to supply telecommunications services by, another facilities-based telecommunications service supplier that is subject to the legislative authority of the Parliament of Canada.

Appendix I-A: Illustrative List of Canada's Regional Non-conforming Measures Sector Non-conforming measure by jurisdiction

ANNEX I

SCHEDULE OF CHILE

INTRODUCTORY NOTES

1. Description provides a general non-binding description of the measure for which the entry is made.

2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation or other measure identified in the Measures element of that entry.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree Law 1.939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1.939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I)

Decree with Force of Law (D.F.L.) 4 of the Ministry of Foreign Affairs, Official Gazette, November 10, 1967 (Decreto con Fuerza de Ley (D.F.L.) 4 del Ministerio de Relaciones Exteriores, Diario Oficial, noviembre 10, 1967)

Description: Investment

Chile may only dispose of the ownership or other rights over "State land" to Chilean natural or juridical persons, unless the applicable legal exceptions, such as in Decree Law 1939 (Decreto Ley 1.939), apply. "State land" for these purposes refers to State owned land up to a distance of 10 kilometres from the border and up to a distance of five kilometres from the coastline, measured from the high-tide line.

Immovable property situated in areas declared "the borderland zone" by virtue of D.F.L. 4 of the Ministry of Foreign Affairs, 1967 (D.F.L. 4 del Ministerio de Relaciones Exteriores, 1967) may not be acquired, either as property or in any other title, by

(1) natural persons with nationality of a neighbouring country;

(2) juridical persons with their principal seat in a neighbouring country;

(3) juridical persons with 40 per cent or more of capital owned by natural persons with nationality of a neighbouring country; or

(4) juridical persons effectively controlled by such natural persons. Notwithstanding the foregoing, this limitation may not apply if an exemption is granted by a Supreme Decree (Decreto Supremo) based on considerations of national interest.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: D.F.L. 1 of the Ministry of Labour and Social Welfare, Official Gazette, January 24, 1994, Labour Code, Preliminary Title, Book I, Chapter III (D.F.L. 1 del Ministerio del Trabajo y Previsión Social, Diario Oficial, enero 24, 1994, Código del Trabajo, Título Preliminar, Libro I, Capítulo III)

Description: Cross-Border Trade in Services

A minimum of 85 per cent of employees who work for the same employer shall be Chilean natural persons or foreigners with more than five years of residence in Chile. This rule applies to employers with more than 25 employees under a contract of employment (contrato de trabajo1). Expert technical personnel shall not be subject to this provision, as determined by the Directorate of Labour (Dirección del Trabajo).

An employee shall be understood to mean any natural person who supplies intellectual or material services, under dependency or subordination, pursuant to a contract of employment.

Sector: Communications

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law 18.838, Official Gazette, September 30, 1989, National Television Council, Titles I, II and III (Ley 18.838, Diario Oficial, septiembre 30, 1989, Consejo Nacional de Televisión, Títulos I, II y III)

Law 18.168, Official Gazette, October 2, 1982, General

Telecommunications Law, Titles I, II and III (Ley 18.168,

Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II y III)

Law 19.733, Official Gazette, June 4, 2001, Law on Liberties of Opinion and Information and the Exercise of Journalism, Titles

I and III (Ley 19.733, Diario Oficial, junio 4, 2001, Ley sobre las Libertades de Opinión e Información y Ejercicio del Periodismo, Títulos I y III)

Description: Investment and Cross-Border Trade in Services

The owner of a social communication medium, such as those that transmit on a regular basis sounds, texts or images, or a national news agency shall, in the case of a natural person, have a duly established domicile in Chile, and in the case of a juridical person, shall be constituted with domicile in Chile or have an agency authorised to operate within the national territory.

Only Chilean nationals may be presidents, administrators or legal representatives of the juridical person.

The owner of a concession to supply (a) public telecommunication services; (b) intermediate telecommunication services supplied to telecommunications services through facilities and networks established for that purpose; and (c) sound broadcasting, shall be a juridical person constituted and domiciled in Chile.

Only Chilean nationals may be presidents, managers, administrators or legal representatives of the juridical person.

In the case of public radio broadcasting services, the board of directors may include foreigners, only if they do not represent the majority.

In the case of a social communication medium, the legally responsible director and the person who subrogates him or her must be Chilean, with domicile and residence in Chile, unless the social communication medium uses a language other than Spanish.

Requests for public radio broadcasting concessions submitted by juridical persons in which foreigners hold an interest exceeding 10 per cent of the capital shall be granted only if proof is previously provided verifying that similar rights and obligations as those that the applicants will enjoy in Chile are granted to Chilean nationals in their country of origin.

The National Television Council (Consejo Nacional de Televisión) may establish, as a general requirement that, programs broadcasted through public (open) television channels include up to 40 per cent of Chilean production.

Sector: Energy

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Level of Government: Central

Measures: Political Constitution of the Republic of Chile, Chapter III (Constitución Política de la República de Chile, Capítulo III)

Law 18.097, Official Gazette, January 21, 1982, Constitutional Organic Law on Mining Concessions, Titles I, II and III (Ley 18.097, Diario Oficial, enero 21, 1982, Orgánica Constitucional sobre Concesiones Mineras, Títulos I, II y III)

Law 18.248, Official Gazette, October 14, 1983, Mining Code, Titles I and II (Ley 18.248, Diario Oficial, octubre 14, 1983, Código de Minería, Títulos I y II)

Law 16.319, Official Gazette, October 23, 1965, Creates the Chilean Nuclear Energy Commission, Titles I, II and III (Ley 16.319, Diario Oficial, octubre 23, 1965, Crea la Comisión Chilena de Energía Nuclear, Títulos I, II y III)

Description: Investment

The exploration, exploitation, and treatment (beneficio) of liquid or gaseous hydrocarbons, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined in each case by a Supreme Decree. For greater certainty, it is understood that the term "treatment" (beneficio) shall not include the storage, transportation or refining of the energy material referred to in this paragraph.

The production of nuclear energy for peaceful purposes may only be carried out by the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear) or, with its authorisation, jointly with third persons. Should the Commission grant such an authorisation, it may determine the terms and conditions thereof.

Sector: Mining

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Level of Government: Central

Measures: Political Constitution of the Republic of Chile, Chapter III (Constitución Política de la República de Chile, Capítulo III)

Law 18.248, Official Gazette, October 14, 1983, Mining Code, Titles I and III (Ley 18.248, Diario Oficial, octubre 14, 1983, Código de Minería, Títulos I y III)

Description: Investment

The exploration, exploitation, and treatment (beneficio) of lithium, deposits of any kind existing in sea waters subject to national jurisdiction, and deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, can be the object of administrative concessions or special operating contracts, subject to the requirements and the conditions to be determined, in each case by a Supreme Decree.

Chile has the right of first offer at market prices and terms for the purchase of mineral products when thorium and uranium are contained in significant quantities.

For greater certainty, Chile may require that producers separate from mining products the portion of:

(a) liquid or gaseous hydrocarbons;

(b) lithium;

(d) deposits of any kind wholly or partially located in areas classified as important to national security with mining effects, which qualification shall be made by law only, that exists, in significant amounts, in such mining products and that can be economically and technically separated, for delivery to or for sale on behalf of the State. For these purposes, "economically and technically separated" means that the costs incurred to recover the four types of substances referred to above through a sound technical procedure and to commercialise and deliver those substances shall be lower than their commercial value.

Furthermore, only the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear), or parties authorised by the said Commission, may execute or enter into juridical acts regarding extracted natural atomic materials and lithium, as well as their concentrates, derivatives and compounds.

Sector: Fisheries

Sub-Sector: Aquaculture

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Law 18.892, Official Gazette, 23 December, 1989, General Law on Fisheries and Aquaculture, Titles I and VI (Ley 18.892, Diario Oficial, diciembre 23, 1989, Ley General de Pesca y Acuicultura, Títulos I y VI)

Description: Investment

Only Chilean natural or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may hold an authorisation or concession to carry out aquaculture activities.

Sector: Fisheries and Fishing Related Activities

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law 18.892, Official Gazette, December 23, 1989, General Law on Fisheries and Aquaculture, Titles I, III, IV and IX (Ley 18.892, Diario Oficial, diciembre 23, 1989, Ley General de Pesca y Acuicultura, Títulos I, III, IV y IX)

Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I and II (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I y II)

Description: Investment and Cross-Border Trade in Services

Only Chilean natural persons or juridical persons constituted in accordance with Chilean law and foreigners with permanent residency may hold permits to harvest and catch hydrobiological species.

Only Chilean vessels are permitted to fish in internal waters, in the territorial sea and in the exclusive economic zone. "Chilean vessels" are those defined in the Navigation Law (Ley de Navegación). Access to industrial extractive fishing activities shall be subject to prior registration of the vessel in Chile.

Only a Chilean natural or juridical person may register a vessel in Chile. Such juridical person must be constituted in Chile with principal domicile and real and effective seat in Chile. The president, manager and the majority of the directors or administrators must be Chilean natural persons. In addition, more than 50 per cent of its equity capital must be held by Chilean natural or juridical persons. For these purposes, a juridical person with ownership participation in another juridical person that owns a vessel has to comply with all the requirements mentioned above.

A joint ownership (comunidad) may register a vessel if (1) the majority of the joint ownership is Chilean with domicile and residency in Chile; (2) the administrators are Chilean natural persons; and (3) the majority of the rights of the joint ownership (comunidad) belong to a Chilean natural or juridical person. For these purposes, a juridical person with ownership participation in a joint ownership (comunidad) that owns a vessel has to comply with all the requirements mentioned above.

An owner (natural or juridical person) of a fishing vessel registered in Chile prior to June 30, 1991 shall not be subject to the nationality requirement mentioned above.

In cases of reciprocity granted to Chilean vessels by any other country, fishing vessels specifically authorised by the maritime authorities pursuant to powers conferred by law may be exempted from the requirements mentioned above on equivalent terms provided to Chilean vessels by that country.

Access to artisanal fishing (pesca artesanal) activities shall be subject to registration in the Registry for Artisanal Fishing (Registro de Pesca Artesanal). Registration for artisanal fishing (pesca artesanal) is only granted to Chilean natural persons and foreign natural persons with permanent residency, or a Chilean juridical person constituted by the aforementioned persons.

Sector: Sports, Hunting, and Recreational Services Sub-Sector:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Law 17.798, Official Gazette, October 21, 1972, Title I (Ley 17.798, Diario Oficial, octubre 21, 1972, Título I)

Supreme Decree 83 of the Ministry of National Defense, Official Gazette, May 13, 2008 (Decreto Supremo 83 del Ministerio de Defensa Nacional, Diario Oficial, mayo 13, 2008)

Description: Cross-Border Trade in Services

Any person who owns guns, explosives or similar substances must register with the appropriate authority in its domicile, for which purpose a request shall be submitted to the General Directorate for National Mobilisation of the Ministry of National Defence (Dirección General de Movilización Nacional del Ministerio de Defensa Nacional).

Any natural or juridical person registered as an importer of fireworks may request authorisation for importation and entrance thereof into Chile from the General Directorate for National Mobilisation (Dirección General de Movilización Nacional) and may keep stocks of the said elements for sale to persons holding authorisation to stage pyrotechnical shows.

The Supervisory Authority (Autoridad Fiscalizadora) shall only authorise pyrotechnical shows if a report is available with regard to the installation, development and security measures for the show, which must be signed and approved by a fireworks programmer registered in the national registries of the General Directorate for National Mobilisation (Dirección General de Movilización Nacional) or by a professional certified by the said General Directorate.

For the production and execution of pyrotechnical shows, the presence of at least a fireworks expert handler registered with the General Directorate shall be required.

Sector: Specialised Services

Sub-Sector: Customs agents (agentes de aduana) and brokers (despachadore de aduana)

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: D.F.L. 30 of the Ministry of Finance, Official Gazette, April 13, 1983, Book IV (D.F.L. 30 del Ministerio de Hacienda, Diario Oficial, abril 13, 1983, Libro IV)

D.F.L. 2 of the Ministry of Finance, 1998 (D.F.L. 2 del Ministerio de Hacienda, 1998)

Description: Cross-Border Trade in Services

Only Chilean natural persons with residency in Chile may act as customs brokers (Despachadores de Aduana) or agents (Agentes de Aduana).

Sector: Investigation and Security Services

Sub-Sector: Guard services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Decree 1.773 of the Ministry of Interior, Official Gazette, November 14, 1994 (Decreto 1.773 del Ministerio del Interior, Diario Oficial, noviembre 14, 1994)

Description: Cross-Border Trade in Services

Only Chilean nationals may provide services as private security guards.

Sector: Business Services

Sub-Sector: Research services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Supreme Decree 711 of the Ministry of National Defence, Official Gazette, October 15, 1975 (Decreto Supremo 711 del Ministerio de Defensa Nacional, Diario Oficial, octubre 15, 1975)

Description: Cross-Border Trade in Services

Foreign natural and juridical persons intending to conduct research in the Chilean 200-mile maritime zone shall be required to submit a request six months in advance to the Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile) and shall comply with the requirements established in the corresponding regulation. Chilean natural and juridical persons shall be required to submit a request three months in advance to the Chilean Army Hydrographic Institute (Instituto Hidrográfico de la Armada de Chile) and shall comply with the requirements established in the corresponding regulation.

Sector: Business Services

Sub-Sector: Research services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: D.F.L. 11 of the Ministry of Economic Affairs, Development and Reconstruction, Official Gazette, December 5, 1968 (D.F.L. 11 del Ministerio de Economía, Fomento y Reconstrucción, Diario Oficial, diciembre 5, 1968)

Decree 559 of the Ministry of Foreign Affairs, Official Gazette, January 24, 1968 (Decreto 559 del Ministerio de Relaciones Exteriores, Diario Oficial, enero 24, 1968)

D.F.L. 83 of the Ministry of Foreign Affairs, Official Gazette, March 27, 1979 (D.F.L. 83 del Ministerio de Relaciones Exteriores, Diario Oficial, marzo 27, 1979)

Description: Cross-Border Trade in Services

Natural persons representing foreign juridical persons, or natural persons residing abroad, intending to perform explorations for work of a scientific or technical nature, or mountain climbing, in areas that are adjacent to Chilean borders shall apply for the appropriate authorisation through a Chilean consul in the country of domicile of the natural person. The Chilean consul shall then send such application directly to the National Directorate of Borders and Frontiers of the State (Dirección Nacional de Fronteras y Límites del Estado). The Directorate may order that one or more Chilean natural persons working in the appropriate related activities shall join the explorations in order to become acquainted with the studies to be undertaken.

The Operations Department of the National Directorate of Borders and Frontiers of the State (Departamento de Operaciones de la Dirección Nacional de Fronteras y Límites del Estado) shall decide and announce whether it authorises or rejects geographic or scientific explorations to be carried out by foreign juridical or natural persons in Chile. The National Directorate of Borders and Frontiers of the State (Dirección Nacional de Fronteras y Límites del Estado) shall authorise and will supervise all explorations involving work of a scientific or technical nature, or mountain climbing, that foreign juridical persons or natural persons residing abroad intend to carry out in areas adjacent to Chilean borders.

Sector: Business Services

Sub-Sector: Research in social sciences

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Law 17.288, Official Gazette, February 4, 1970, Title V (Ley 17.288, Diario Oficial, febrero 4, 1970, Título V)

Supreme Decree 484 of the Ministry of Education, Official Gazette, April 2, 1991 (Decreto Supremo 484 del Ministerio de Educación, Diario Oficial, abril 2, 1991)

Description: Cross-Border Trade in Services

Foreign juridical or foreign natural persons intending to perform excavations, surveys, probing or collect anthropological, archaeological or paleontological material must apply for a permit from the National Monuments Council (Consejo de Monumentos Nacionales). In order to obtain the permit, the person in charge of the research must be engaged by a reliable foreign scientific institution and must be working in collaboration with a Chilean governmental scientific institution or a Chilean university.

The aforementioned permit can be granted to (1) Chilean researchers having the pertinent scientific background in archaeology, anthropology or palaeontology, duly certified as appropriate, and also having a research project and due institutional sponsorship; and (2) foreign researchers, provided that they are engaged by a reliable scientific institution and that they work in collaboration with a Chilean governmental scientific institution or a Chilean university. Museum directors or curators recognised by the National Monuments Council (Consejo de Monumentos Nacionales), professional archaeologists, anthropologists or palaeontologists, as appropriate, and the members of the Chilean Society of Archeology (Sociedad Chilena de Arqueología) shall be authorised to perform salvage-related works. Salvage-related works involve the urgent recovery of data or archaeological, anthropological or paleontological artefacts or species threatened by imminent loss.

Sector: Business Services

Sub-Sector: Printing, publishing and other related industries

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4) Senior Management and Boards of Directors (Article 9.11) Local Presence (Article 10.6)

Level of Government: Central

Measures: Law 19.733, Official Gazette, June 4, 2001, Law on Liberties of Opinion and Information and the Exercise of Journalism, Titles I and III (Ley 19.733, Diario Oficial, junio 4, 2001, Ley sobre las Libertades de Opinión e Información y Ejercicio del Periodismo, Títulos I y III)

Description: Investment and Cross-Border Trade in Services

The owner of a social communication medium such as newspapers, magazines or regularly published texts whose publishing address is located in Chile, or a national news agency, shall, in the case of a natural person, have a duly established domicile in Chile and, in the case of a juridical person, shall be constituted with domicile in Chile or have an agency authorised to operate within the national territory.

Only Chilean nationals may be president, administrators or legal representatives of the juridical person.

The director legally responsible and the person who replaces him or her must be Chilean with domicile and residence in Chile. Chilean nationality will not be required in case a social communication medium uses a language different from Spanish.

Sector: Professional Services

Sub-Sector: Accounting, auditing, book-keeping and taxation services

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law 18.046, Official Gazette, October 22, 1981, Corporations Law, Title V (Ley 18.046, Diario Oficial, octubre 22, 1981, Ley de Sociedades Anónimas, Título V)

Supreme Decree 702 of the Ministry of Finance, Official

Gazette, July 6, 2012, Corporations Act (Decreto Supremo 702 del Ministerio de Hacienda, Diario Oficial, julio 6, 2012, Reglamento de Sociedades Anónimas)

Decree Law 1.097, Official Gazette, July 25, 1975, Titles I, II, III and IV (Decreto Ley 1.097, Diario Oficial, julio 25, 1975, Títulos I, II, III y IV)

Decree Law 3.538, Official Gazette, December 23, 1980, Titles I, II, III and IV (Decreto Ley 3.538, Diario Oficial, diciembre 23, 1980, Títulos I, II, III y IV)

Circular 2.714, October 6, 1992; Circular 1, January 17, 1989; Chapter 19 Updated Collection, Superintendence of Banks and Financial Institutions Norms on External Auditors (Circular 2.714, octubre 6,1992; Circular 1, enero 17, 1989; Capítulo 19 de la Recopilación Actualizada de Normas de la Superintendencia de Bancos e Instituciones Financieras sobre Auditores Externos)

Circular 327, June 29, 1983 and Circular 350, October 21, 1983, Superintendence of Securities and Insurance (Circular 327, junio 29, 1983 y Circular 350, octubre 21, 1983, de la Superintendencia de Valores y Seguros)

Description: Cross-Border Trade in Services

External auditors of financial institutions must be registered in the Registry of External Auditors kept by the Superintendence of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras) and the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Only Chilean juridical persons legally incorporated as partnerships (sociedades de personas) or associations (asociaciones) and whose main line of business is auditing services may be inscribed in the Registry.

Sector: Professional Services

Sub-Sector: Legal services

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Tribunals Organic Code, Title XV, Official Gazette, July 9, 1943 (Código Orgánico de Tribunales, Título XV, Diario Oficial, julio 9, 1943)

Decree 110 of the Ministry of Justice, Official Gazette, March 20, 1979 (Decreto 110 del Ministerio de Justicia, Diario Oficial, marzo 20, 1979)

Law 18.120, Official Gazette, May 18, 1982 (Ley 18.120, Diario Oficial, mayo 18, 1982)

Description: Cross-Border Trade in Services

Only Chilean and foreign nationals with residence in Chile, who have completed the totality of their legal studies in the country, shall be authorised to practice as lawyers (abogados).

Only lawyers (abogados) duly qualified to practise law shall be authorised to plead a case in Chilean courts and to file the first legal action or claim of each party.

The following documents, among others, shall be drawn up solely by lawyers (abogados): drafting of articles of incorporation and amendments thereto; mutual termination of obligations or liquidation of corporations; liquidation of community property between spouses (sociedad conyugal); distribution of property; articles of incorporation of juridical persons, associations, water canal members (asociaciones de canalistas), and cooperative associations (cooperativas); agreements governing financial transactions; corporate bond issuance agreements; and sponsoring applications for legalrepresentation made by corporations and foundations.

None of these measures apply to foreign legal consultants who practise or advise on international law or on the law of another Party.

Sector: Professional, Technical and Specialised Services

Sub-Sector: Auxiliary services in the administration of justice

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Tribunals Organic Code, Titles XI and XII, Official Gazette, July 9, 1943, (Código Orgánico de Tribunales, Títulos XI y XII, Diario Oficial, julio 9, 1943)

Real State Custodian Registry Act, Titles I, II and III, Official Gazette, June 24, 1857 (Reglamento del Registro Conservador de Bienes Raíces, Títulos I, II y III, Diario Oficial, junio 24, 1857)

Law 18.118, Official Gazette, May 22, 1982, Title I (Ley 18.118, Diario Oficial, mayo 22, 1982, Título I)

Decree 197 of the Ministry of Economic Affairs, Development and Reconstruction, Official Gazette, August 8, 1985 (Decreto 197 del Ministerio de Economía, Fomento y Reconstrucción, Diario Oficial, agosto 8, 1985)

Law 18.175, Official Gazette, October 28, 1982, Title III (Ley 18.175, Diario Oficial, octubre 28, 1982, Título III)

Description: Cross-Border Trade in Services

Justice ancillaries (auxiliares de la administración de justicia) must have their residence in the same city or place where the court house for which they render services is domiciled.

Public defenders (defensores públicos), public notaries (notarios públicos), and custodians (conservadores) shall be Chilean natural persons and fulfil the same requirements needed to become a judge.

Archivists (archiveros), public defenders (defensores públicos) and arbitrators at law (árbitros de derecho) must be lawyers (abogados) and, therefore, must be Chilean or foreign nationals with residence in Chile who have completed the totality of their legal studies in the country. Another Party's lawyers may assist in arbitration when dealing with the law of another Party and international law and the private parties request it.

Only Chilean natural persons with the right to vote, and foreign natural persons with permanent residence and the right to vote, can act as process servers (receptores judiciales) and superior court attorneys (procuradores del número).

Only Chilean natural persons, foreign natural persons with permanent residence in Chile or Chilean juridical persons may be auctioneers (martilleros públicos).

Receivers in bankruptcy (síndicos de quiebra) must have a professional or technical degree granted by a university or a professional or technical institute recognised by Chile. Receivers in bankruptcy must have at least three years of experience in the commercial, economic or juridical field.

Sector: Transportation

Sub-Sector: Air transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law 18.916, Official Gazette, February 8, 1990, Code of Aeronautics, Preliminary Title and Titles II and III (Ley 18.916, Diario Oficial, febrero 8, 1990, Código Aeronáutico, Título Preliminar y Títulos II y III)

Decree Law 2.564, Official Gazette, June 22, 1979, Commercial Aviation Norms (Decreto Ley 2.564, Diario Oficial, junio 22, 1979, Normas sobre Aviación Comercial) Supreme Decree 624 of the Ministry of National Defence, Official Gazette, January 5, 1995 (Decreto Supremo 624 del Ministerio de Defensa Nacional, Diario Oficial, enero 5, 1995)

Law 16.752, Official Gazette, February 17, 1968, Title II (Ley 16.752, Diario Oficial, febrero 17, 1968, Título II)

Decree 34 of the Ministry of National Defence, Official Gazette, February 10, 1968 (Decreto 34 del Ministerio de Defensa Nacional, Diario Oficial, febrero 10, 1968)

Supreme Decree 102 of the Ministry of Transport and Telecommunications, Official Gazette, June 17, 1981 (Decreto Supremo 102 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, junio 17, 1981)

Supreme Decree 172 of the Ministry of National Defence, Official Gazette, March 5, 1974 (Decreto Supremo 172 del Ministerio de Defensa Nacional, Diario Oficial, marzo 5, 1974)

Supreme Decree 37 of the Ministry of National Defence, Official Gazette, December 10, 1991 (Decreto Supremo 37 del Ministerio de Defensa Nacional, Diario Oficial, diciembre 10, 1991)

Decree 222 of the Ministry of National Defence, Official Gazette, October 05, 2005 (Decreto 222 del Ministerio de Defensa Nacional, Diario Oficial, octubre 5, 2005)

Description: Investment and Cross-Border Trade in Services

Only a Chilean natural or juridical person may register an aircraft in Chile. Such juridical person must be constituted in Chile with principal domicile and real and effective seat in Chile. In addition, a majority of its ownership must be held by Chilean natural or juridical persons, which in turn must comply with the aforementioned requisites. The aviation authority may allow the registration of aircrafts owned by foreign natural or juridical persons, provided they are employed in Chile or exercise a permanent professional activity or industry in Chile.

The president, manager, majority of directors and administrators of the juridical person must be Chilean natural persons.

A foreign registered private aircraft engaged in non-commercial activities may not remain in Chile more than 30 days from its date of entry into Chile, unless authorised by the General Directorate for Civil Aeronautics (Dirección General de Aeronáutica Civil). For greater certainty, this measure shall not apply to specialty air services as defined in Article 9.1 (Definitions), except for glider towing and parachute jumping.

Foreign aviation personnel that do not hold a licence granted by Chilean civil aviation authorities, shall be allowed to work in that capacity in Chile, provided that Chilean civil aviation authorities validate the licence or authorisation granted by a foreign country. In the absence of an international agreement regulating such validation, the licence or authorisation shall be granted under conditions of reciprocity. In that case, proof shall be submitted showing that the licences or authorisations were issued or validated by the pertinent authorities in the country where the aircraft is registered, that the documents are in force, and that the requirements for issuing or validating such licences and authorisations meet or exceed the standards required in Chile for analogous cases. Air services may be supplied by Chilean or foreign companies subject to the condition that foreigners grant similar rights to Chilean aviation companies when so requested. The Civil Aviation Board (Junta de Aeronáutica Civil), by means of a substantiated resolution (resolución fundada), may terminate, suspend or limit any class of commercial aviation services carried out solely in Chilean territory by foreign companies or aircraft, if in their country of origin the right to equal treatment for Chilean companies and aircraft is denied.

Sector: Transportation

Sub-Sector: Water transport services and shipping

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Level of Government: Central

Measures: Decree Law 3.059, Official Gazette, December 22, 1979, Merchant Fleet Promotion Law, Titles I and II (Decreto Ley 3.059, Diario Oficial, 22 de diciembre de 1979, Ley de Fomento a la Marina Mercante, Títulos I y II)

Supreme Decree 237, Official Gazette, July 25, 2001, Act of Decree Law 3.059, Titles I and II (Decreto Supremo 237, Diario Oficial, julio 25, 2001, Reglamento del Decreto Ley 3.059, Títulos I y II)

Code of Commerce, Book III, Titles I, IV and V (Código de Comercio, Libro III, Títulos I, IV y V)

Description: Investment and Cross-Border Trade in Services

Cabotage shall be reserved for Chilean vessels. Cabotage shall include the ocean, river or lake shipping of passengers and cargo between different points of the national territory and between such points and naval artefacts installed in territorial waters or in the exclusive economic zone.

Foreign merchant vessels may be able to participate in cabotage when cargo volumes exceed 900 tons, following a public tender called by the user with due anticipation. When the cargo volumes involved are equal to or less than 900 tons, and no vessels flying the Chilean flag are available, the Maritime Authority may authorise embarking such cargo on foreign merchant vessels.

International maritime transport of cargo to or from Chile is subject to the principle of reciprocity.

In the event that Chile should adopt, for reasons of reciprocity, a cargo reservation measure applicable to international cargo transportation between Chile and a non-Party, the reserved cargo shall be transported in Chilean-flag vessels or in vessels considered as such.

Sector: Transportation

Sub-Sector: Water transport services and shipping

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II, III, IV y V)

Code of Commerce, Book III, Titles I, IV and V (Código de Comercio, Libro III, Títulos I, IV y V)

Description: Investment and Cross-Border Trade in Services

Only a Chilean natural or juridical person may register a vessel in Chile. Such juridical person must be constituted with principal domicile and real and effective seat in Chile. In addition, more than 50 per cent of its capital must be held by Chilean natural or juridical persons. For these purposes, a juridical person with ownership participation in another juridical person that owns a vessel has to comply with all the aforementioned requisites. The president, manager and majority of the directors or administrators must be Chilean natural persons.

A joint ownership (comunidad) may register a vessel if (1) the majority of the joint ownership is Chilean with domicile and residency in Chile; (2) the administrators are Chileans; and (3) the majority of the rights of the joint ownership belong to a Chilean natural or juridical person. For these purposes, a juridical person with ownership participation in a joint ownership (comunidad) that owns a vessel has to comply with all the aforementioned requisites to be considered Chilean.

Special vessels owned by foreign natural or juridical persons may be registered in Chile, if those persons meet the following conditions: (1) domicile in Chile; (2) principal head office in Chile; or (3) undertaking a profession or commercial activity in a permanent way in Chile.

"Special vessels" are those used in services, operations or for specific purposes, with special features for the functions they perform, such as tugboats, dredgers, scientific or recreational vessels, among others. For the purposes of this paragraph, a special vessel does not include a fishing vessel.

The maritime authority may provide better treatment based on the principle of reciprocity.

Sector: Transportation

Sub-Sector: Water transport services and shipping

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, 31 mayo de 1978, Ley de Navegación, Títulos I, II, III, IV y V)

Supreme Decree 153, Official Gazette, March 11, 1966, Approves the Sea People, Fluvial and Lacustrine Personnel Registration General Act (Decreto Supremo 153, Diario Oficial, 11 marzo de 1966, Aprueba el Reglamento General de Matrícula del Personal de Gente de Mar, Fluvial y Lacustre)

Code of Commerce, Book III, Titles I, IV and V (Código de Comercio, Libro III, Títulos I, IV y V)

Description: Cross-Border Trade in Services

Foreign vessels shall be required to use pilotage, anchoring and harbour pilotage services when the maritime authorities so require. In tugging activities or other manoeuvres performed in Chilean ports, only tugboats flying the Chilean flag shall be used.

Captains shall be required to be Chilean nationals and to be acknowledged as such by the pertinent authorities. Officers on Chilean vessels must be Chilean natural persons registered in the Officers' Registry (Registro de oficiales). Crewmembers of a Chilean vessel must be Chilean, have the permit granted by the Maritime Authority (Autoridad Marítima) and be registered in the respective Registry. Professional titles and licences granted by a foreign country may be considered valid for the discharge of officers' duties on Chilean vessels pursuant to a substantiated resolution (resolución fundada) issued by the Director of the Maritime Authority.

Ship captains (patrón de nave) shall be Chilean nationals. A ship captain is a natural person who, pursuant to the corresponding title awarded by the Director of the Maritime Authority, is empowered to exercise command on smaller vessels and on certain special larger vessels.

Fishing boat captains (patrones de pesca), machinists (mecánicos-motoristas), machine operators (motoristas), sea faring fishermen (marineros pescadores), small-scale fishermen (pescadores), industrial or maritime trade technical employees or workers, and industrial and general ship service crews on fishing factories or fishing boats shall be required to be Chilean nationals. Foreigners with domicile in Chile shall also be authorised to perform those activities when so requested by ship operators (armadores) for being indispensable to initiate those activities.

In order to fly the Chilean flag, the ship captain (patrón de nave), officers and crew must be Chilean nationals. Nevertheless, if indispensable, the General Directorate for the Maritime Territory and Merchant Fleet (Dirección General del Territorio Marítimo y de Marina Mercante), on the basis of a substantiated resolution (resolución fundada) and on a temporary basis, may authorise the hiring of foreign personnel, with the exception of the captain, who must always be a Chilean national.

Only Chilean natural or juridical persons shall be authorised to act in Chile as multimodal operators.

Sector: Transportation

Sub-Sector: Water transport services and shipping

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Code of Commerce, Book III, Titles I, IV and V (Código de Comercio, Libro III, Títulos I, IV y V)

Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II and IV (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II y IV)

Decree 90 of the Ministry of Labour and Social Welfare, Official Gazette, January 21, 2000 (Decreto 90 del Ministerio de Trabajo y Previsión Social, Diario Oficial, enero 21, 2000)

Decree 49 of the Ministry of Labour and Social Welfare, July 16, 1999 (Decreto 49 del Ministerio de Trabajo y Previsión Social, Diario Oficial, julio 16, 1999)

Labour Code, Book I, Title II, Chapter III, paragraph 2 (Código del Trabajo, Libro I, Título II, Capítulo III, párrafo 2)

Description: Investment and Cross-Border Trade in Services

Shipping agents or representatives of ship operators, owners or captains, whether they are natural or juridical persons, shall be required to be Chilean.

Work of stowage and dockage performed by natural persons is reserved to Chileans who are duly accredited by the corresponding authority to carry out such work and have an office established in Chile.

Whenever these activities are carried out by juridical persons, they must be legally constituted in Chile and have their principal domicile in Chile. The chairman, administrators, managers or directors must be Chilean. At least 50 per cent of the corporate capital must be held by Chilean natural or juridical persons. Such enterprises shall designate one or more empowered agents, who will act in their representation and who shall be Chilean nationals.

Anyone unloading, transshipping and, generally, using continental or insular Chilean ports, particularly for landing fish catches or processing fish catches on board, shall also be required to be a Chilean natural or juridical person.

Sector: Transportation

Sub-Sector: Land transportation

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Supreme Decree 212 of the Ministry of Transport and Telecommunications, Official Gazette, November 21, 1992 (Decreto Supremo 212 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, noviembre 21, 1992)

Decree 163 of the Ministry of Transport and Telecommunications, Official Gazette, January 4, 1985 (Decreto 163 del Ministerio de Transportes y Telecomunicaciones, Diario Oficial, enero 4, 1985)

Supreme Decree 257 of the Ministry of Foreign Affairs, Official Gazette, October 17, 1991 (Decreto Supremo 257 del Ministerio de Relaciones Exteriores, Diario Oficial, octubre 17, 1991)

Description: Cross-Border Trade in Services

Land transportation service suppliers shall register in the National Registry by submitting an application to the Regional Secretary of Transport and Telecommunications (Secretaría Regional Ministerial del Ministerio de Transportes y Telecomunicaciones). In the case of urban services, applicants shall submit the application to the Regional Secretary responsible for the area in which the service is to be supplied and, in the case of rural and interurban services, in the region where the applicant is domiciled. The application shall provide the detailed information required by law, attaching thereto, among other documents, a properly certified photocopy of the National Identity Card and, in the case of juridical persons, the public instruments accrediting its constitution and name and the domicile of its legal representative and documents evidencing such capacity.

Foreign natural and juridical persons qualified to supply international transportation services in Chilean territory cannot supply local transportation services or participate in any manner whatsoever in the said activities in the national territory.

Only companies with actual and effective domicile in Chile and organised under the laws of Chile, Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay shall be authorised to supply international land transportation services between Chile and Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay.

Furthermore, to obtain an international land transport permit, in the case of foreign juridical persons, more than 50 per cent of its corporate capital and effective control shall be held by nationals of Chile, Argentina, Bolivia, Brazil, Peru, Uruguay or Paraguay.

Sector: Transportation

Sub-Sector: Land transportation

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Law 18.290, Official Gazette, February 7, 1984, Title IV (Ley 18.290, Diario Oficial, febrero 7, 1984, Título IV)

Supreme Decree 485 of the Ministry of Foreign Affairs, Official Gazette, September 7, 1960, Geneva Convention (Decreto Supremo 485 del Ministerio de Relaciones Exteriores, Diario Oficial, septiembre 7, 1960, Convención de Ginebra)

Description: Cross-Border Trade in Services

Motor vehicles bearing foreign licence plates that enter Chile on a temporary basis, pursuant to provisions set forth in the 1949 Geneva Convention on Road Traffic, shall circulate freely throughout the national territory for the period established therein, provided that they comply with the requirements established by Chilean law.

Holders of valid international driving licences or certificates issued in a foreign country in accordance with the Geneva Convention may drive anywhere within the national territory.

The driver of a vehicle bearing foreign licence plates who holds an international driver's licence shall present, upon request by the authorities, the documents certifying both the roadworthiness of the vehicle and the use and validity of his or her personal documents.

ANNEX I

SCHEDULE OF JAPAN

INTRODUCTORY NOTES

In the interpretation of an entry, all elements of the entry shall be considered. An entry shall be interpreted in the light of the relevant provisions of the Chapters against which the entry is taken, and the Measures element shall prevail over all the other elements.

Sector: Agriculture, Forestry and Fisheries (Plant Breeder's Rights)

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Level of Government: Central

Measures: Seeds and Seedlings Law (Law No. 83 of 1998), Article 10

Description:

Investment

A foreign person who has neither a domicile nor residence (nor the place of business, in the case of a legal person) in Japan cannot enjoy plant breeder's rights or related rights except in any of the following cases:

(a) where the country of which the person is a national or the country in which the person has a domicile or residence (or its place of business, in the case of a legal person) is a party to the International Convention for the Protection of New Varieties of Plants of December 2, 1961, as Revised at Geneva on November 10, 1972, on October 23, 1978, and on March 19, 1991;

(b) where the country of which the person is a national or the country in which the person has

a domicile or residence (or its place of business, in the case of a legal person) is a party to the International Convention for the Protection of New Varieties of Plants of December 2, 1961, as Revised at Geneva on November 10, 1972, and on October 23, 1978 (hereinafter referred to in this Annex as "UPOV 1978"), or a country in relation with which Japan shall apply UPOV 1978 in accordance with paragraph (2) of Article 34 of UPOV 1978, and further provides the protection for the plant genus and species to which the person's applied variety belongs; or

(c) where the country of which the person is a national provides Japanese nationals with the protection of varieties under the same condition as its own nationals (including a country which provides such protection for Japanese nationals under the condition that Japan allows enjoyment of plant breeder's rights or related rights for the nationals of that country), and further provides the protection for the plant genus and species to which the person's applied variety belongs.

Sector: Agriculture, Forestry and Fisheries, and Related Services (except fisheries within the territorial sea, internal waters, exclusive economic zone and continental shelf provided for in the entry at Annex II – JAPAN – 12)

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in agriculture, forestry and fisheries, and related services (except fisheries within the territorial sea, internal waters, exclusive economic zone and continental shelf provided for in the entry at Annex II – JAPAN– 12) in Japan.

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which significant adverse effect is brought to the smooth operation of the Japanese economy.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Automobile Maintenance Business

Sub-Sector: Motor vehicle disassembling repair business

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Road Vehicle Law (Law No. 185 of 1951), Chapter 6

Description:

Cross-Border Trade in Services

A person who intends to conduct motor vehicle disassembling repair businesses is required to establish a workplace in Japan and to obtain approval from the Director-General of the District Transport Bureau having jurisdiction over the district where the workplace is located.

Sector: Business Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Employment Security Law (Law No. 141 of 1947), Chapter 3 and Chapter 3-3

Law Concerning Securing the Proper Operation of Worker Dispatching Undertakings and Protecting Dispatched Workers (Law No. 88 of 1985), Chapter 2

Port Labour Law (Law No. 40 of 1988), Chapter 4 Mariner's Employment Security Law (Law No. 130 of 1948), Chapter 3

Law Concerning the Improvement of Employment of Construction Workers (Law No. 33 of 1976), Chapter 5 and Chapter 6

Description:

Cross-Border Trade in Services

A person who intends to supply the following services for enterprises in Japan is required to have an establishment in Japan and to obtain permission from, or to submit notification to, the competent authority, as applicable:

(a) private job placement services including fee charging job placement services for construction workers; or

(b) worker dispatching service including stevedore dispatching services, mariner dispatching services and work opportunities securing services for construction workers.

Labour supply services may be supplied only by a labour union which has obtained permission from the competent authority pursuant to the Employment Security Law or Mariner's Employment Security Law.

Sector: Collection Agency Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Special Measures Law Concerning Credit Management and Collection Business (Law No. 126 of 1998), Article 3 and Article 4

Attorney Law (Law No. 205 of 1949), Article 72 and Article 73

Description:

Cross-Border Trade in Services

A person who intends to supply collection agency services which constitute the practice of law in respect of legal cases is required to be qualified as an attorney at law under the laws and regulations of Japan (Bengoshi), a legal professional corporation under the laws and regulations of Japan (Bengoshi-hojin), or an enterprise established under the Special Measures Law Concerning Credit Management and Collection Business and to establish an office in Japan.

No person may take over and recover another person's credits as business except an enterprise established under the Special Measures Law Concerning Credit Management and Collection Business that handles credits pursuant to provisions of that law.

Sector: Construction

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Construction Business Law (Law No. 100 of 1949), Chapter 2 Law Concerning Recycling of Construction Materials (Law No. 104 of 2000), Chapter 5

Description:

Cross-Border Trade in Services

1. A person who intends to conduct construction business is required to establish a place of business in Japan and to obtain permission from the Minister of Land, Infrastructure, Transport and Tourism or from the prefectural governor having jurisdiction over the district where the place of business is located.

2. A person who intends to conduct demolition work business is required to establish a place of business in Japan and to be registered with the prefectural governor having jurisdiction over the district where the place of business is located.

Sector: Distribution Services

Sub-Sector: Wholesale trade services, retailing services, commission agents' services, related to alcoholic beverages

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Liquor Tax Law (Law No. 6 of 1953), Article 9, Article 10 and Article 11

Description:

Cross-Border Trade in Services

The number of licences conferred to service suppliers in the listed sub-sectors may be limited, where it is necessary to maintain a supply-demand balance of liquors in order to secure liquor tax revenue (paragraph 11 of Article 10 of the Liquor Tax Law).

Sector: Distribution Services

Sub-Sector: Wholesale trade services supplied at public wholesale market

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Wholesale Market Law (Law No. 35 of 1971), Article 9, Article 10, Article 15, Article 17 and Article 33

Description:

Cross-Border Trade in Services

The number of licences conferred to wholesale trade service suppliers at public wholesale markets may be limited, in cases where the public wholesale markets set the maximum number of the suppliers in order to secure the proper and sound operation of the public wholesale markets.

Sector: Education, Learning Support

Sub-Sector: Higher educational services

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Fundamental Law of Education (Law No.120 of 2006), Article 6

School Education Law (Law No. 26 of 1947), Article 2 Private School Law (Law No. 270 of 1949), Article 3

Description:

Cross-Border Trade in Services

Higher educational services supplied as formal education in Japan must be supplied by formal education institutions. Formal education institutions must be established by school juridical persons.

"Formal education institutions" means elementary schools, lower secondary schools, secondary schools, compulsory education school, upper secondary schools, universities, junior colleges, colleges of technology, special support schools, kindergartens and integrated centres for early childhood education and care.

"School juridical person" means a non-profit juridical person established for the purposes of supplying educational services under the law of Japan.

Sector: Heat Supply

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in the heat supply industry in Japan.

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Information and Communications

Sub-Sector: Telecommunications

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Law Concerning Nippon Telegraph and Telephone Corporation, Etc. (Law No. 85 of 1984), Article 6 and Article 10

Description:

Investment

1. Nippon Telegraph and Telephone Corporation may not enter the name and address in its register of shareholders if the aggregate of the ratio of the voting rights directly or indirectly held by the persons set forth in subparagraphs (a) through (c) reaches or exceeds one-third:

(a) a natural person who does not have Japanese nationality;

(b) a foreign government or its representative; and

2. Any natural person who does not have Japanese nationality may not assume the office of director or auditor of Nippon Telegraph and Telephone Corporation, Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation.

Sector: Information and Communications

Sub-Sector: Telecommunications and internet based services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in telecommunications business and internet based services in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Manufacturing

Sub-Sector: Shipbuilding and repairing, and marine engines

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Shipbuilding Law (Law No. 129 of 1950), Article 2, Article 3 and Article 3-2

Description:

Cross-Border Trade in Services

A person who intends to establish or extend docks, which can be used to manufacture or repair vessels of 500 gross tonnage or more or 50 metres in length or more, is required to obtain permission from the Minister of Land, Infrastructure, Transport and Tourism. The issuance of a licence is subject to the requirements of an economic needs test.

Sector: Manufacturing

Sub-Sector: Drugs and medicines manufacturing

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in biological preparations manufacturing industry in Japan. For greater certainty, "biological preparations manufacturing industry" deals with economic activities in an establishment which produces vaccine, serum, toxoid, antitoxin and some preparations similar to the aforementioned products, or blood products.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Manufacturing

Sub-Sector: Leather and leather products manufacturing

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in leather and leather products manufacturing industry in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Matters Related to the Nationality of a Ship

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Level of Government: Central

Measures: Ship Law (Law No.46 of 1899), Article 1

Description:

Investment and Cross-Border Trade in Services

Nationality requirement applies to the supply of international maritime transport services (including services of passenger transportation and freight transportation) through establishment of a registered company operating a fleet flying the flag of Japan.

"Nationality requirement" means that the ship must be owned by a Japanese national, or a company established under the laws and regulations of Japan, of which all the representatives and not less than two-thirds of the executives administering the affairs are Japanese nationals.

Sector: Measuring Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Measurement Law (Law No. 51 of 1992), Chapter 3, Chapter 5, Chapter 6 and Chapter 8

Regulations on Measurement Law (Ministerial Ordinance of the Ministry of International Trade and Industry No. 69 of 1993)

Ministerial Ordinance for Designated Inspection Body, Designated Verification Body, Designated Measurement Certification Inspection Body and Specified Measurement Certification Accreditation Body (Ministerial Ordinance of the Ministry of International Trade and Industry No. 72 of 1993)

Description:

Cross-Border Trade in Services

1. A person who intends to supply services of conducting the periodic inspection of specified measuring instruments is required to establish a legal person in Japan and to be designated by the prefectural governor having jurisdiction over the district where the person intends to conduct such inspection, or by the mayor of a designated city or the chief of a designated ward or village in case the place where the person intends to conduct such inspection is located within the district of such designated city, ward or village.

2. A person who intends to supply services of conducting the verification of specified measuring instruments is required to establish a legal person in Japan and to be designated by the Minister of Economy, Trade and Industry.

3. A person who intends to conduct measurement certification business, including specified measurement certification business, is required to have an establishment in Japan and to be registered with the prefectural governor having jurisdiction over the district where the establishment is located.

4. A person who intends to supply services of conducting the inspection of specified measuring instruments used for the measurement certification is required to establish a legal person in Japan and to be designated by the prefectural governor having jurisdiction over the district where the person intends to conduct such inspection.

5. A person who intends to supply services of conducting the accreditation for a person engaged in specified measurement certification business is required to establish a legal person in Japan, and to be designated by the Minister of Economy, Trade and Industry.

6. A person who intends to supply services of conducting the calibration of measuring instruments is required to establish a legal person in Japan and to be designated by the Minister of Economy, Trade and Industry.

Sector: Medical, Health Care and Welfare

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law Concerning Collection of Labour Insurance Premium (Law No. 84 of 1969), Chapter 4

Enforcement Regulations for the Law Concerning Collection of Labour Insurance Premium (Ministerial Ordinance of the Ministry of Labour No. 8 of 1972)

Description:

Cross-Border Trade in Services

Only an association of business proprietors or a federation of such associations approved by the Minister of Health, Labour and Welfare under the laws and regulations of Japan may conduct labour insurance businesses entrusted by business proprietors. An association which intends to conduct such labour insurance businesses under the laws and regulations of Japan is required to establish an office in Japan, and to obtain the approval of the Minister of Health, Labour and Welfare.

Sector: Mining and Services incidental to Mining

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Mining Law (Law No. 289 of 1950), Chapter 2 and Chapter 3

Description:

Investment and Cross-Border Trade in Services

Only a Japanese national or an enterprise of Japan may have mining rights or mining lease rights.

Sector: Oil Industry

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in the oil industry in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. All organic chemicals such as ethylene, ethylene glycol and polycarbonates are outside the scope of the oil industry. Therefore, prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law do not apply to the investments in the manufacture of these products.

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Attorney Law (Law No. 205 of 1949), Chapter 3, Chapter 4, Chapter 4-2, Chapter 5 and Chapter 9

Description:

Cross-Border Trade in Services

A natural person who intends to supply legal services is required to be qualified as an attorney-at-law under the laws and regulations of Japan (Bengoshi) and to establish an office within the district of the local bar association to which the natural person belongs.

An enterprise which intends to supply legal services is required to establish a legal professional corporation under the laws and regulations of Japan (Bengoshi-Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law on Special Measures Concerning the Handling of Legal Services by Foreign Lawyers (Law No. 66 of 1986), Chapter 2 and Chapter 4

Description:

Cross-Border Trade in Services

A natural person who intends to supply legal advisory services concerning foreign laws is required to be qualified as a registered foreign lawyer under the laws and regulations of Japan (Gaikoku-Ho-Jimu-Bengoshi) and to establish an office within the district of the local bar association to which the natural person belongs.

Gaikoku-Ho-Jimu-Bengoshi under the laws and regulations of Japan is required to stay in Japan for not less than 180 days per year.

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Patent Attorney Law (Law No. 49 of 2000), Chapter 3, Chapter 6 and Chapter 8

Description:

Cross-Border Trade in Services

A natural person who intends to supply patent attorney services is required to be qualified as a patent attorney under the laws and regulations of Japan (Benrishi).

An enterprise which intends to supply patent attorney services is required to establish a patent business corporation under the laws and regulations of Japan (Tokkyo-Gyomu-Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Notary Law (Law No. 53 of 1908),Chapter 2 and Chapter 3

Description:

Cross-Border Trade in Services

Only a Japanese national may be appointed as a notary in Japan.

The notary is required to establish an office in the place designated by the Minister of Justice.

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Judicial Scrivener Law (Law No. 197 of 1950), Chapter 3, Chapter 4, Chapter 5, Chapter 7 and Chapter 10

Description:

Cross-Border Trade in Services

A natural person who intends to supply judicial scrivener services is required to be qualified as a judicial scrivener under the laws and regulations of Japan (Shiho-Shoshi) and to establish an office within the district of the judicial scrivener association to which the natural person belongs.

An enterprise which intends to supply judicial scrivener services is required to establish a judicial scrivener corporation under the laws and regulations of Japan (Shiho-Shoshi-Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Certified Public Accountant Law (Law No. 103 of 1948), Chapter 3, Chapter 5-2 and Chapter 7

Description:

Cross-Border Trade in Services

A natural person who intends to supply certified public accountants services is required to be qualified as a certified public accountant under the laws and regulations of Japan (Koninkaikeishi).

An enterprise which intends to supply certified public accountants services is required to establish an audit corporation under the laws and regulations of Japan (Kansa Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Certified Public Tax Accountant Law (Law No. 237 of 1951), Chapter 3, Chapter 4, Chapter 5-2, Chapter 6 and Chapter 7 Enforcement Regulation on Certified Public Tax Accountant Law (Ministerial Ordinance of the Ministry of Finance No. 55 of 1951)

Description:

Cross-Border Trade in Services

A natural person who intends to supply certified public tax accountant services is required to be qualified as a certified public tax accountant under the laws and regulations of Japan (Zeirishi) and to establish an office within the district of certified public tax accountant association to which the natural person belongs.

An enterprise which intends to supply certified public tax accountant services is required to establish a certified public tax accountant corporation under the laws and regulations of Japan (Zeirishi-Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Architect and/or Building Engineer Law (Law No. 202 of 1950), Chapter 1, Chapter 2 and Chapter 6

Description:

Cross-Border Trade in Services

An architect or building engineer, qualified as such under the laws and regulations of Japan (Kenchikushi), or a person employing such an architect or building engineer, who intends to conduct business of design, superintendence of construction work, administrative work related to construction work contracts, supervision of building construction work, survey and evaluation of buildings, and representation in procedures under the laws and regulations concerning construction, upon request from others for remuneration, is required to establish an office in Japan.

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Certified Social Insurance and Labour Consultant Law (Law No. 89 of 1968), Chapter 2-2, Chapter 4-2, Chapter 4-3 and Chapter 5

Description:

Cross-Border Trade in Services

A natural person who intends to supply social insurance and labour consultant services is required to be qualified as a certified social insurance and labour consultant under the laws and regulations of Japan (Shakai-Hoken-Roumushi) and to establish an office in Japan.

An enterprise which intends to supply social insurance and labour consultant services is required to establish a certified social insurance and labour consultant corporation under the laws and regulations of Japan (Shakai-Hoken-Roumushi Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Administrative Scrivener Law (Law No. 4 of 1951), Chapter 3, Chapter 4, Chapter 5 and Chapter 8

Description:

Cross-Border Trade in Services

A natural person who intends to supply administrative scrivener services is required to be qualified as an administrative scrivener under the laws and regulations of Japan (Gyousei Shoshi) and to establish an office within the district of the administrative scrivener association to which the natural person belongs.

An enterprise which intends to supply administrative scrivener services is required to establish an administrative scrivener corporation under the laws and regulations of Japan (Gyousei Shoshi-Hojin).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Maritime Procedure Agents Law (Law No.32 of 1951), Article 17

Description:

Cross-Border Trade in Services

Maritime procedure agent services must be supplied by a natural person who is qualified as a maritime procedure agent under the laws and regulations of Japan (Kaijidairishi).

Sector: Professional Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Land and House Surveyor Law (Law No. 228 of 1950), Chapter 3, Chapter 4, Chapter 5 , Chapter 7 and Chapter 10

Description:

Cross-Border Trade in Services

A natural person who intends to supply land and house surveyor services is required to be qualified as a land and house surveyor under the laws and regulations of Japan (Tochi Kaoku-Chosashi) and to establish an office within the district of the land and house surveyor association to which the natural person belongs.

An enterprise which intends to supply land and house surveyor services is required to establish a land and house surveyor corporation under the laws and regulations of Japan (Tochi Kaoku-Chosashi-Hojin).

Sector: Real Estate

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Building Lots and Buildings Transaction Business Law (Law No. 176 of 1952), Chapter 2

Real Estate Syndication Law (Law No. 77 of 1994), Chapter 2 and Chapter 4-2

Law Concerning Improving Management of Condominiums (Law No. 149 of 2000), Chapter 3

Description:

Cross-Border Trade in Services

1. A person who intends to conduct building lots and buildings transaction business is required to establish an office in Japan and to obtain a licence from the Minister of Land, Infrastructure, Transport and Tourism or from the prefectural governor having jurisdiction over the district where the office is located.

2. A person who intends to conduct real estate syndication business is required to establish an office in Japan and to obtain permission from the competent Minister or from the prefectural governor having jurisdiction over the district where the office is located or to submit notification to the competent Minister.

3. A person who intends to conduct condominiums management business is required to establish an office in Japan and to be registered in the list maintained by the Ministry of Land, Infrastructure, Transport and Tourism.

Sector: Real Estate Appraisal Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law Concerning the Appraisal of Real Estate (Law No. 152 of 1963), Chapter 3

Description:

Cross-Border Trade in Services

A person who intends to supply real estate appraisal services is required to establish an office in Japan and to be registered in the list maintained by the Ministry of Land, Infrastructure, Transport and Tourism or the prefecture having jurisdiction over the district where the office is located.

Sector: Seafarers

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Mariners Law (Law No. 100 of 1947), Chapter 4 Official Notification of the Director General of Seafarers Department, Maritime Technology and Safety Bureau of the Ministry of Transport, No. 115, 1990

Official Notification of the Director General of Seafarers Department, Maritime Technology and Safety Bureau of the Ministry of Transport, No. 327, 1990

Official Notification of the Director General of Maritime Bureau of the Ministry of Land, Infrastructure and Transport, No. 153, 2004

Description:

Cross-Border Trade in Services

Foreign nationals employed by Japanese enterprises, except for the seafarers referred to in the relevant official notifications, may not work on vessels flying the Japanese flag.

Sector: Security Guard Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in security guard services in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Services Related to Occupational Safety and Health

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Industrial Safety and Health Law (Law No. 57 of 1972), Chapter 5 and Chapter 8

Ministerial Ordinance for Registration and Designation related to Industrial Safety and Health Law, and Orders based on the Law (Ministerial Ordinance of the Ministry of Labour No. 44 of 1972)

Working Environment Measurement Law (Law No. 28 of 1975), Chapter 2 and Chapter 3

Enforcement Regulation of the Working Environment Measurement Law (Ministerial Ordinance of the Ministry of Labour No. 20 of 1975)

Description:

Cross-Border Trade in Services

A person who intends to supply inspection or verification services for working machines, skill training courses, and other related services in connection with occupational safety and health, or working environment measurement services is required to be resident or to establish an office in Japan, and to be registered with the Minister of Health, Labour and Welfare or Director-General of the Prefectural Labour Bureau.

Sector: Surveying Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Survey Law (Law No. 188 of 1949), Chapter 6

Description:

Cross-Border Trade in Services

A person who intends to supply surveying services is required to establish a place of business in Japan and to be registered with the Minister of Land, Infrastructure, Transport and Tourism.

Sector: Transport

Sub-Sector: Air transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Civil Aeronautics Law (Law No. 231 of 1952), Chapter 7 and Chapter 8

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in air transport business in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. Permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting air transport businesses as a Japanese air carrier is not granted to the following natural persons or entities applying for the permission:

(a) a natural person who does not have Japanese nationality;

(b) a foreign country, or a foreign public entity or its equivalent;

(d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b) or (c); a legal person of which more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a legal person of which more than one-third of voting rights are held by natural persons or entities referred to in subparagraph (a), (b) or (c).

In the event that an air carrier becomes a natural person or an entity referred to in subparagraphs (a) through (d), the permission will lose its effect. The conditions for the permission also apply to companies such as holding companies, which have substantial control over the air carriers.

5. A Japanese air carrier or a company having substantial control over such air carrier, such as a holding company, may reject the request from a natural person or an entity set forth in paragraphs 4(a) through 4(c), who owns equity investments in such air carrier or company, to enter its name and address in the register of shareholders, in the event that such air carrier or company becomes a legal person referred to in paragraph 4(d) by accepting such request.

6. Foreign air carriers are required to obtain permission of the Minister of Land, Infrastructure, Transport and Tourism to conduct international air transport businesses.

7. Permission of the Minister of Land, Infrastructure, Transport and Tourism is required for the use of foreign aircraft for air transportation of passengers or cargoes to and from Japan for remuneration.

8. A foreign aircraft may not be used for a flight between points within Japan.

Sector: Transport

Sub-Sector: Air transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Civil Aeronautics Law (Law No. 231 of 1952), Chapter 7 and Chapter 8

Description:

Investment and Cross-Border Trade in Services

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in aerial work business in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. Permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting aerial work business is not granted to the following natural persons or entities applying for the permission:

(a) a natural person who does not have Japanese nationality;

(b) a foreign country, or a foreign public entity or its equivalent;

(c) a legal person or other entity constituted under the laws of any foreign country; and (d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b) or (c); a legal person of which more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a legal person of which more than one-third of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b) or (c).

In the event that a person conducting aerial work business becomes a natural person or an entity referred to in subparagraphs (a) through (d), the permission will lose its effect. The conditions for the permission also apply to companies, such as holding companies, which have substantial control over the person conducting aerial work business.

5. A foreign aircraft may not be used for a flight between points within Japan.

Sector: Transport

Sub-Sector: Air transport (registration of aircraft in the national register)

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Level of Government: Central

Measures: Civil Aeronautics Law (Law No. 231 of 1952), Chapter 2

Description:

Investment and Cross-Border Trade in Services

1. An aircraft owned by any of the following natural persons or entities may not be registered in the national register:

(a) a natural person who does not have Japanese nationality;

(b) a foreign country, or a foreign public entity or its equivalent;

(d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b) or (c); a legal person of which more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a legal person of which more than one-third of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b) or (c)

2. A foreign aircraft may not be registered in the national register.

Sector: Transport

Sub-Sector: Customs brokerage

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Customs Brokerage Law (Law No. 122 of 1967), Chapter 2

Description:

Cross-Border Trade in Services

A person who intends to conduct customs brokerage business is required to have a place of business in Japan and to obtain permission of the Director-General of Customs having jurisdiction over the district where the person intends to conduct customs brokerage business.

Sector: Transport

Sub-Sector: Freight forwarding business (excluding freight forwarding business using air transportation)

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Freight Forwarding Business Law (Law No. 82 of 1989), Chapter 2, Chapter 3 and Chapter 4

Enforcement Regulation of Freight Forwarding Business Law (Ministerial Ordinance of the Ministry of Transport No. 20 of 1990), Chapter 3, Chapter 4 and Chapter 5

Description:

Investment and Cross-Border Trade in Services

1. The following natural persons or entities are required to be registered with, or to obtain permission or approval of, the Minister of Land, Infrastructure, Transport and Tourism for conducting freight forwarding business using international shipping:

(a) a natural person who does not have Japanese nationality;

(b) a foreign country, or a foreign public entity or its equivalent;

(d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b) or (c); a legal person of which more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a legal person of which more than one-third of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b) or (c).

Such registration shall be made, or such permission or approval shall be granted, on the basis of reciprocity.

2. A person who intends to conduct freight forwarding business is required to establish an office in Japan, and to be registered with, or to obtain permission or approval of, the Minister of Land, Infrastructure, Transport and Tourism.

Sector: Transport

Sub-Sector: Freight forwarding business (only freight forwarding business using air transportation)

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Freight Forwarding Business Law (Law No. 82 of 1989), Chapter 2, Chapter 3 and Chapter 4

Enforcement Regulation of Freight Forwarding Business Law (Ministerial Ordinance of Ministry of Transport No. 20 of 1990)

Description:

Investment

1. The following natural persons or entities may not conduct freight forwarding businesses using air transportation between points within Japan:

(a) a natural person who does not have Japanese nationality;

(b) a foreign country, or a foreign public entity or its equivalent;

(d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b) or (c); a legal person of which more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a legal person of which more than one-third of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b) or (c).

2. The natural persons or entities referred to in paragraphs 1(a) through 1(d) are required to be registered with, or to obtain permission or approval of, the Minister of Land, Infrastructure, Transport and Tourism for conducting freight forwarding businesses using international air transportation. Such Registration shall be permitted, or such permission or approval will be granted, on the basis of reciprocity.

Sector: Transport

Sub-Sector: Railway transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in railway transport industry in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. The manufacture of vehicles or parts and components for the railway transport industry is not included in railway transport industry. Therefore, the prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law do not apply to the investments in the manufacture of these products.

Sector: Transport

Sub-Sector: Road passenger transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in omnibus industry in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. The manufacture of vehicles or parts and components for omnibus industry is not included in omnibus industry. Therefore, the prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law do not apply to the investments in the manufacture of these products.

Sector: Transport

Sub-Sector: Road transport

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Road Transport Law (Law No. 183 of 1951), Chapter 2 Special Measures Law concerning the proper management and revitalization of the taxi business in specified and sub-specified regions (Law No.64 of 2009) (hereinafter referred to in this entry "the Law"), Chapter 2 and Chapter 7

Trucking Business Law (Law No. 83 of 1989), Chapter 2

Description:

Cross-Border Trade in Services

1. A person who intends to conduct road passenger transport business or road freight transport business is required to establish a place of business in Japan, and to obtain permission of, or to submit notification to, the Minister of Land, Infrastructure, Transport and Tourism.

2. In respect of common taxicab operators business, the Minister of Land, Infrastructure, Transport and Tourism may not grant permission to a person who intends to conduct the businesses, or may not approve a modification of the business plan of such businesses in the "specified regions" and in the "semi-specified regions" designated by the Minister of Land, Infrastructure, Transport and Tourism. Such permission may be granted, or such modification of the business plan may be approved with respect to "semi-specified regions" when the standards set out in the Law are met, including those that the capacity of common taxicab operators businesses in that region does not exceed the volumes of the traffic demand.

Such designation would be made when the capacity of common taxicab transportation businesses in that region exceeds or is likely to exceed the volumes of traffic demand to the extent that it would become difficult to secure the safety of transportation and the benefits of passengers.

3. In respect of common motor trucking business or motor trucking business (particularly-contracted), the Minister of Land, Infrastructure, Transport and Tourism may not grant permission to a person who intends to conduct the businesses, or may not approve a modification of the business plan of such businesses, in the "emergency supply/demand adjustment area" designated by the Minister of Land, Infrastructure, Transport and Tourism. Such designation would be made when the capacity of common motor trucking businesses or motor trucking businesses (particularly-contracted) in that area has significantly exceeded the volumes of transportation demand to the extent that the operation of existing businesses would become difficult.

Sector: Transport

Sub-Sector: Services incidental to transport

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Road Transport Law (Law No. 183 of 1951), Chapter 4

Description:

Cross-Border Trade in Services

A person who intends to conduct motorway businesses is required to obtain a licence from the Minister of Land, Infrastructure, Transport and Tourism. The issuance of a licence is subject to an economic needs test, such as whether the proposed motorway is appropriate in scale compared with the volume and nature of traffic demand in the proposed area.

Sector: Transport

Sub-Sector: Services incidental to transport

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Pilotage Law (Law No. 121 of 1949), Chapter 2, Chapter 3 and Chapter 4

Description:

Cross-Border Trade in Services

Only a Japanese national may become a pilot in Japan.

Pilots directing ships in the same pilotage district are required to establish a pilot association for the pilotage district.

Sector: Transport

Sub-Sector: Water transport

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Market Access (Article 10.5)

Level of Government: Central

Measures: Law Concerning Special Measures against Unfavorable Treatment to Japanese Oceangoing Ship Operators by Foreign Government (Law No. 60 of 1977)

Description:

Cross-Border Trade in Services

Oceangoing ship operators of another Party may be restricted or prohibited from entering Japanese ports or from loading and unloading cargoes in Japan in cases where Japanese oceangoing ship operators are prejudiced by that Party.

Sector: Transport

Sub-Sector: Water transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. For greater certainty, "water transport industry" refers to oceangoing/seagoing transport, coastwise transport (i.e. maritime transport between ports in Japan), inland water transport, and ship leasing industry. However, oceangoing/seagoing transport industry and ship leasing industry excluding coastwise ship leasing industry are exempted from the prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law.

Sector: Transport

Sub-Sector: Water transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Level of Government: Central

Measures: Ship Law (Law No. 46 of 1899), Article 3

Description:

Investment and Cross-Border Trade in Services

Unless otherwise specified in laws and regulations of Japan, or international agreements to which Japan is a party, ships not flying the Japanese flag are prohibited from entering ports in Japan which are not open to foreign commerce and from carrying cargoes or passengers between Japanese ports.

Sector: Vocational Skills Test

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Human Resources Development Promotion Law (Law No. 64 of 1969), Chapter 5

Description:

Cross-Border Trade in Services

Some of specific type of non-profit organisation (the employers' organisations, their federations, general incorporated associations, general incorporated foundations, incorporated labour unions or miscellaneous incorporated non profit organisations) can supply the service. Such organisation which intends to carry out the vocational skills test for workers is required to establish an office in Japan and to be designated by the Minister of Health, Labour and Welfare.

Sector: Water Supply and Waterworks

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description:

Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in water supply and waterworks industry in Japan.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Wholesale and Retail Trade

Sub-Sector: Livestock

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Livestock Dealer Law (Law No. 208 of 1949), Article 3

Description:

Cross-Border Trade in Services

A person who intends to conduct livestock trading business is required to be resident in Japan, and to obtain a licence from the prefectural governor having jurisdiction over the place of

residence. For greater certainty, "livestock trading" means the trading or exchange of livestock, or the good offices for such trading or exchange.

Sector: Aerospace Industry

Sub-Sector: Aircraft manufacturing and repairing industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5

Aircraft Manufacturing Industry Law (Law No.237 of 1952), Article 2, Article 3, Article 4 and Article 5

Description:

Investment and Cross-Border Trade in Services

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intended to make investments in the aircraft industry in Japan.

3. The investors may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. A technology introduction contract between a resident and a non-resident related to the aircraft industry is subject to the prior notification requirement and screening procedure under the Foreign Exchange and Foreign Trade Law.

5. The screening is conducted from the viewpoint of whether the conclusion of the technology introduction contract is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.

6. The resident may be required to alter the provisions of the technology introduction contract or discontinue the conclusion of that contract, depending on the screening result.

7. The number of licences conferred to manufactures and service suppliers in those sectors may be limited.

8. An enterprise which intends to produce aircraft and supply repair services is required to establish a factory related to manufacture or repair aircraft under the laws and regulations of Japan.

ANNEX I

SCHEDULE OF MALAYSIA

INTRODUCTORY NOTES

1. Description sets out the non-conforming measures for which the entry is made.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Registration of Business Act 1956 [Act 197] Limited Liability Partnership Act 2012 [Act 743]

Co-operative Societies Act 1993 [Act 502]

Description: Investment

Only Malaysian nationals or permanent residents can register a sole proprietorship or partnership in Malaysia. Foreigners can register a Limited Liability Partnership (LLP) in Malaysia, but the compliance officer shall be a citizen or permanent resident of Malaysia that resides in Malaysia.

Foreigners are not allowed to establish or join cooperative societies in Malaysia.

Sector: Manufacturing

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Industrial Co-ordination Act 1975 [Act 156] Administrative Guidelines

Description: Investment

1. Foreign equity is limited up to 49 per cent for investment in the manufacture or assembly of motor vehicles. However, no foreign equity restrictions are imposed on the following categories:

(a) luxury passenger vehicles with engine capacity of 1,800 c.c. and above and on the road price not less than RM150,000;

(b) pick-up trucks and commercial vehicles;

(d) motorcycles with engine capacity of 200 c.c. and above.

2. Foreign equity is limited up to 30 per cent for the manufacture of batik fabric and apparel of batik.

Sector: Manufacturing

Obligations Concerned: Performance Requirements (Article 9.10)

Level of Government: Central and Regional

Measures: Industrial Co-ordination Act 1975 [Act 156] Customs Act 1967 [Act 235]

Free Zone Act 1990 [Act 438]

Petroleum Development Act 1974 [Act 144]

Pineapple Industry (Cannery Control) Regulations 1959

Pineapple Industrial Act 1957 (Revised 1990) [Act 427]

Administrative Guidelines

Description: Investment

1. Companies located within the Licensed Manufacturing Warehouse (LMW) and Free Industrial Zone (FIZ) are subject to export conditions.

2. Companies engaging in petroleum refining activity are required to export 100 per cent of their products.

3. Expansion of existing projects in the manufacture of optical disc is subject to export conditions of 100 per cent export.

4. Expansion projects will be considered only for existing independent palm oil refineries which source 100 per cent from their own plantation. For Sabah and Sarawak, a manufacturing licence will only be considered for new integrated projects which source 50 per cent of crude palm oil from their own plantations. Integrated projects refer to projects with own plantation.

5. For pineapple canning, approval will only be granted for projects which source 100 per cent supply from their own plantation.

Sector: Marine Capture Fisheries

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central and Regional

Measures: Fisheries Act 1985 [Act 317]

Description: Investment and Cross-Border Trade in Services

No foreign fishing vessel shall load or unload any fish, fuel or supplies or tranship any fish, or fish or attempt to fish, or conduct any techno-economic research or waters survey of any fishery, in Malaysian fisheries waters unless authorised to do so.

An application for a licence or a permit to be issued in respect of a foreign fishing vessel to fish in Malaysian fisheries waters shall be made through a Malaysian agent who shall undertake legal and financial responsibility for the activities to be carried out by such vessel.

Fishing vessel means any boat, craft, ship or other vessel which is used for, equipped to be used for, or of a type used for:

(a) fishing; or

(b) aiding or assisting another boat, craft, ship or other vessel in the performance of any activity related to fishing, including any of the activities of preparation, processing, refrigeration, storage, supply or transportation of fish.

Sector: Patent Agent Services

Trademark Agent Services

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Patent Act 1983 [Act 291]

Description: Cross-Border Trade in Services

Only natural persons registered with the Intellectual Property Corporation of Malaysia (MyIPO) and residing in Malaysia are allowed to carry out a business, practice or act as a patent and trademark agent in Malaysia.

Sector: Professional Services

Sub-Sector: Engineering services

Quantity surveying services

Land surveying services

Architectural services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central and Regional

Measures: Registration of Engineers Act 1967 (amended 2007) [Act 138]

Registration of Engineers Regulations 1990 (amended 2003)

Architect Act 1967 [Act 117]

Architect Rules 1996 (Amendment 2011)

Quantity Surveyors Act 1967 [Act 487]

Quantity Surveyors (Amendment) Rules 2004

Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 [Act 520]

Administrative Guidelines

Description: Investment and Cross-Border Trade in Services

Any qualified natural persons, who are resident in Malaysia and registered with the relevant professional boards are allowed to supply engineering, quantity surveying, land surveying and architectural services.

Foreigners will be subject to temporary registration.

Engineering services and architectural services must be authenticated by a registered professional in Malaysia.

The shareholding of an engineering, architectural and quantity surveying services establishment shall be no less than 70 per cent held by any one of the registered professionals. For each of these establishments, the majority of directors shall be registered professionals. This shall also apply to multi disciplinary practices (MDP) comprising of professional architects, professional engineers with a practicing certificate, and registered land or quantity surveyors with a practicing certificate.

Sector: Legal Services (other than arbitration)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central and Regional

Measures: Legal Profession Act 1976 [Act 166]

Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules 2014

Offshore Companies Act 1990 [Act 441]

Labuan Trust Companies Act 1990 [Act 442]

Advocates Ordinance of Sabah 1953 [Sabah Cap. 2]

Advocates Ordinance of Sarawak 1953 [Sarawak Cap. 110]

Description: Investment and Cross-Border Trade in Services

Peninsular Malaysia and the Federal Territory of Labuan

Foreign law firms and foreign lawyers are not permitted to practice Malaysian law save as provided for under section 40(O) of the Legal Profession Act 1976 [Act 166] and the Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules 2014.

Foreign law firms from recognised jurisdictions must apply to a Selection Committee to be established as a Qualified Foreign Law Firm (QFLF) or an International Partnership (IP) with a Malaysian law firm. A maximum of five QFLF licences may be issued in the initial period and only to foreign law firms with proven expertise in International Islamic Finance.

Only foreign lawyers from recognised jurisdictions can apply to work in a QFLF, an IP or a Malaysian law firm. Such a foreign lawyer must be resident in Malaysia for not less than 182 days in any calendar year.

A QFLF and an IP, and a registered foreign lawyer working in a Malaysian law firm are subject to the provisions of the Legal Profession Act 1976 [Act 166].

Foreign lawyers providing legal services in Malaysia on a "fly in and fly-out" basis shall be subject to the provisions under section 37(2B)(b) of the Legal Profession Act 1976 [Act 166].

Sabah and Sarawak

Foreign law firms and foreign lawyers are not permitted to practice in Sabah or Sarawak.

Sector: Real Estate Services on a fee or contract basis

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central and Regional

Measures: Section 18 of Valuers, Appraisers & Estate Agents Act 1981 [Act 242]

Valuers, Appraisers & Estate Agents Rules 1986

Description: Investment and Cross-Border Trade in Services

A natural person who is not a citizen or permanent resident of Malaysia shall not qualify for registration as a valuer.

Sector: Communications Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Communications and Multimedia Act of 1998 [Act 588] Communications and Multimedia (Licensing) Regulations 2000

Description: Investment and Cross-Border Trade in Services

Licences for the supply of telecommunications services in Malaysia are divided into individual licences and class licences, depending on the character of the service.

The following persons or classes of persons shall be ineligible to apply for an individual licence:

(a) a foreign company defined under the Companies Act 1965 [Act 125];

(b) an individual or a sole proprietorship; and

The following persons or classes of persons shall be ineligible to be registered as a class licensee:

(i) a foreign individual who is not a permanent resident; and

(ii) a foreign company as defined under the Companies Act 1965 [Act 125].

Foreigners are not permitted to apply for a licence for Content Applications Service Providers (CASP), a special subset of applications service providers that refers to satellite broadcasting, subscription broadcasting, terrestrial free to air TV or terrestrial radio broadcasting.

The Minister of Communication and Multimedia may, for good cause or as the public interest may require, permit either of the above to apply to be registered as any one of the licensee mentioned above.

Sector: Education Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Education Act 1996 [Act 550]

Private Higher Education Institutions Act 1996 [Act 555]

Description: Investment and Cross-Border Trade in Services

Education services provided in Malaysia can only be provided by education services suppliers that are registered and established in Malaysia.

Foreigners are not allowed to supply the following education services:

(a) preschool;

(b) primary and secondary school education services covering Malaysian national curriculum; and

Sector: Private Healthcare Facilities and Services Allied Health Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Medical Regulations 1974

Private Healthcare Facilities and Services Act 1998 [Act 586]

Private Healthcare Facilities and Services Regulations 2006

Registration of Pharmacists Act 1951 [Act 371]

Administrative Guidelines

Description: Investment and Cross-Border Trade in Services

Private healthcare facilities and services can only be supplied by service suppliers that are registered and established in Malaysia and with authorisation.

Foreigners are not allowed to establish blood banks, maternity homes, psychiatric hospitals, pathology laboratories or to practice as general dental practitioners, general medical practitioners, and general nurses including midwifery.

Specialised Dental Services

Foreigners are not allowed to provide specialised dental services or operate a specialised medical facility except in oral and maxillo-facial reconstructive surgery.

Pharmacists

Foreign pharmacists are not allowed to prepare, dispense, assemble or sell medicinal products.

Allied health services

Foreigners are not allowed to supply allied health services which cover services such as clinical scientist, microbiologist, clinical biochemist, medical geneticist, biomedical scientist, embryologist, medical physicist, entomologist, forensic scientist, nutritionist, speech language pathologist/speech language therapist, audiologist, physiotherapist, counsellors, diagnostic radiographer, radiotherapist, food technologist, dietician, medical social officer, optometrist, health education officer, environmental health officer, medical laboratory technologist, health care food service assistant officer, assistant medical officer and assistant food technologist.

Sector: Customs Agents and Brokers

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Customs Act 1967 [Act 235]

Customs Regulations 1977

Customs Standing Orders No.45/2003

Description: Cross-Border Trade in Services

Foreigners are not allowed to act as customs agents and brokers.

Sector: Tourist Guide Services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Tourism Industry Act 1992 [Act 482]

Description: Cross-Border Trade in Services

Foreigners are not allowed to provide tourist guide services.

Sector: Utilities

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central and Regional

Measures: Electricity Supply Act 1990 [Act 447]

Electricity (Amendment) Ordinance 2003 (Cap A109)

Electricity Rules 1999

Electricity (State Grid Code) Rules 2003

SESCO Ordinance 1962 (Cap 51)

Sarawak Electricity Supply (successor Company) Ordinance 2004 (Cap 59)

Energy Commission Act 2001 [Act 610]

Electricity Regulations 1994

Licensee Supply Regulations 1990

Gas Supply Act 1993

Gas Supply Regulation 1997

Energy Commission Act 2001 [Act 610]

Sarawak Gas Supply Services (Operating Company) Ordinance 1995

Waters Act 1920 [Act 418]

Description: Investment and Cross-Border Trade in Services

No person, other than a supply authority, is authorised to supply, use, work or operate any installation relating to gas, water and electricity.

Only persons that are registered and established in Malaysia can supply services for gas, water and electricity, and disposal of waste.

Sector: Transport Services

Sub-Sector: International maritime transport services (including maritime cabotage and government cargo)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central and Regional

Measures: Merchant Shipping Ordinance 1952 [Ordinance 70/1952] Merchant Shipping Ordinance 1960 (Sabah) [Ordinance 11/1960]

Merchant Shipping Ordinance 1960 (Sarawak) [Ordinance 2/1960]

Merchant Shipping (Amendment and Extension) Act 2007 [Act A1316]

Administrative Guidelines

Description: Investment and Cross-Border Trade in Services

Foreign shipping vessels are not permitted to provide and supply domestic shipping services, maritime cabotage services and government cargo.

Malaysia International Ship Registry

Foreign persons may only provide international maritime services that are not plying in domestic waters only through a representative office, regional office or locally incorporated joint venture corporation with Malaysian individuals or Malaysian controlled corporations or both. Aggregate foreign shareholding in the joint venture corporation shall maintain not less than 51 per cent.

All joint venture or corporation seeking to register ships under this registry shall appoint a ship manager prior to registration of a ship, who shall be:

(a) a Malaysian citizen having his or her permanent residence in Malaysia; or

(b) a company incorporated in Malaysia and having its principal place of business in Malaysia.

Traditional Registry

Only ships registered on the Traditional Registry may provide domestic maritime services.

Foreign persons may only register a ship on the Traditional Registry through a representative office, regional office or locally incorporated joint venture corporation with Malaysian individuals or Malaysian controlled corporations or both. Aggregate foreign shareholding in the joint venture corporation shall not exceed 51 per cent.

All joint ventures or corporations seeking to register ships under this registry shall satisfy the following conditions:

(a) majority of senior managers and board of directors shall be Malaysians; and

(b) incorporated in Malaysia and having its main business operations in Malaysia.

Sector: Distribution Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Guidelines on Foreign Participation in the Distributive Trade Services in Malaysia (Amendment 2010)

Franchise Act 1998 [Act 590]

Companies Act 1965 [Act 125]

Guideline on Convenience Stores with Foreign Interest

Description: Investment and Cross-Border Trade in Service

Foreigners are not allowed to operate supermarkets, mini markets, permanent wet markets, permanent pavement markets, fuel stations with or without kiosk, news agent, medical hall, Malaysian cuisine restaurants, bistro, jewellery stores and textile stores.

All hypermarkets, superstores, departmental stores, specialty stores, franchise businesses, and convenience stores (as defined in the relevant Guidelines) with foreign equity must be incorporated locally under the Companies Act 1965 [Act 125].

All foreign involvement in distributive trade shall obtain the approval of the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) on:

(a) acquisition;

(b) mergers or takeovers;

(d) relocation or expansion of existing and new branches/outlets/chain stores;

(e) acquisitions of outlets of other operators; and

(f) purchase and sale of properties to operate distributive trade activities prior to obtaining the approval or license from local authorities and other agencies to operate distributive trade activities.

All distributive trade companies with foreign equity shall:

(a) appoint Bumiputera directors;

(b) hire personnel at all levels including management to reflect the racial composition of the Malaysian population;

(c) formulate plans on human resource such as capacity building and transfer of knowledge to assist Bumiputera participation in the distributive trade sector; and

(d) hire at least one per cent of the total workforce from persons with disabilities.

The minimum capital investment is RM50 million for hypermarkets, RM25 million for superstores, RM20 million for department stores, and RM1 million for specialty stores and convenience stores, subject to review every three years.

No less than 30 per cent of the equity in hypermarkets, superstores and convenience stores is to be held by Bumiputera.

Hypermarkets, superstores, convenience stores and departmental stores shall seek to allocate 30 per cent of the Stock Keeping Units displayed on the shelf space for Bumiputera SME goods and products in each outlet within three years.

One hypermarket will be allowed for every 250,000 residents and one superstore for every 200,000 residents.

All hypermarkets, superstores and departmental stores shall begin operation within two years from the date of approval from MDTCC.

A specialty store may be allowed to operate if it fulfils the following objectives:

(a) there is an absence of local players in the proposed format;

(b) it creates employment opportunities;

(d) the business has a unique or exclusive nature.

Foreigners are not allowed to apply for a franchise broker or consultant licence.

The sale of a franchise is deemed to be in Malaysia where an offer to sell or buy a franchise:

(a) is made in Malaysia and accepted within or outside Malaysia;

(b) is made outside Malaysia and accepted within Malaysia; and

There are three types of franchises as follows:

For convenience stores, only a foreign company that is not associated with the franchisor (according to Franchise Act 1998 [Act 590]) may invest or own not more than 30 per cent equity interest.

For greater certainty, "only a foreign company that is not associated with the franchisor" means only a foreign company that is not the franchisor according to Franchise Act 1998 [Act 590].

Sector: Construction and Related Engineering Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Level of Government: Central

Measures: Registration of Engineers Act 1967 (amended 2007) [Act 138] Registration of Engineers Regulations 1990 (amended 2003)

Architect Act 1967 [Act 117]

Quantity Surveyors Act 1967 [Act 487]

Quantity Surveyors (Amendment) Rules 2004

Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 [Act 520]

Administrative Guidelines

Description: Investment and Cross-Border Trade in Services

Only an entity incorporated in Malaysia registered with the Malaysian Construction Industry Development Board (CIDB) and locally incorporated either through a representative office, regional office or joint venture corporation, with Malaysian individuals or Malaysian controlled corporations may be permitted to provide construction and related services.

Any entity incorporated in Malaysia, whose foreign equity exceeds more than 30 per cent by way of a joint venture corporation or consortium with Malaysian individuals or Malaysian controlled corporations, is subject to the registration requirements by CIDB.

The senior management and board of directors of each foreign entity shall be of Malaysian majority that shall have control over its management and investment.

Sector: Freight Road Transportation Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Land Public Transport Act 2010 [Act 715]

Panduan Dasar Pelesenan Suruhanjaya Pengangkutan Awam Darat (SPAD)

Description: Investment and Cross-Border Trade in Services

Only entities that are registered and established in Malaysia are allowed to provide freight road transportation services in Malaysia.

Foreigners are not allowed to own more than 49 per cent of equity shareholding in any entity supplying freight transportation services covering transportation of containerised freight based on a fee or contractual basis.

Sector: Wholesale and Distribution Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central

Measures: Price Control Act 1946 [Act 121]

Control of Supplies Act 1961 [Act 122]

Description: Investment and Cross-Border Trade in Services

Foreigners are not permitted to provide wholesale and distribution services for fabrics and apparels of batik, motor vehicles including motorcycles and scooters, passenger cars and commercial vehicles (excluding automotive components and parts of these vehicles).

Sector: Oil and Gas

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Petroleum Development Act 1974 [Act 144]

Other Implementing Measures

Description: Investment and Cross-Border Trade in Services

The Prime Minister of Malaysia may make non-conforming regulations for the purposes of carrying into effect the provisions of the Petroleum Development Act of 1974 [Act 144] with respect to the upstream oil and gas sector1, and may in particular, provide for the conduct of or the carrying on of:

(a) any business or service relating to the exploration, exploitation, winning or obtaining of petroleum; and

(b) any business involving the manufacture and supply of equipment used in the petroleum industry,

except:

(c) regulations that impose non-conforming requirements shall not be adopted or maintained with respect to the supply of the following 12 goods or services:

(i) Seismic Data Acquisition;

(ii) Directional Drilling services, Gyro While Drilling services, Measurement While Drilling services, and Logging While Drilling services;

(iii) Cementing Related Services;

(iv) Gas Turbines and related maintenance and repair services;

(v) Control Valves services;

(vi) Oil Country Tubular Goods;

(vii) Induction motor services;

(viii) Distributed Control Systems (DCS) services;

(ix) Transformer services;

(x) Structural steel;

(xi) Linepipes; and

(xii) Process pipes;

(d) regulations shall not be adopted or maintained that impose restrictions on mode of entry for foreign entities that wish to participate in Malaysia's upstream oil and gas sector activities of exploring, exploiting, winning and obtaining petroleum that are more non-conforming than the following requirements:

(i) a requirement to have a local establishment;

(ii) a requirement to partner with a subsidiary of Petroliam Nasional Berhad (PETRONAS);

(iii) a requirement, during the exploration stage, that the PETRONAS subsidiary's participating interest as a Petroleum Arrangement Contractor is ‘carried' at maximum of its participating interest; and

(iv) a requirement that the Petroleum Arrangement Contractors may only procure goods and services from PETRONAS' List of Licensed Registered Companies (LLRC);

(e) regulations shall not be adopted or maintained that impose restrictions on mode of entry for foreign entities that seek to supply goods and services to Malaysia's upstream oil and gas sector that are more non-conforming than the following requirements:

(i) a requirement to be licensed on the PETRONAS' LLRC; and

(ii) a requirement to appoint a local as an exclusive agent, or to establish in Malaysia and form a joint venture with a local company or individual;

(f) regulations with respect to local participation requirements for equity, board of directors and senior management positions for foreign entities licensed on the PETRONAS' LLRC that seek to supply goods and services shall not be adopted or maintained that are more non-conforming than the requirements for relevant work categories listed in the existing Standardised Work and Equipment Categories for products and services; and

(g) after Malaysia negotiates and executes a contract with an operator or service supplier, non conforming regulations shall not be applied in a manner that is inconsistent with the terms and conditions of the contract.

ANNEX I

SCHEDULE OF MEXICO

INTRODUCTORY NOTES

1. Description provides a general non-binding description of the measure for which the entry is made.

2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation or other measure identified in the Measures element of that entry.

3. In the interpretation of an entry, all elements of the entry shall be considered. An entry shall be interpreted in the light of the relevant provisions of the Chapters against which the entry is taken. To the extent that:

(a) the Measures element is qualified by a liberalisation commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and

(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.

4. For the purposes of this Annex:

The term "CMAP" means Mexican Classification of Activities and Products (Clasificación Mexicana de Actividades y Productos) numbers as set out in the National Institute for Statistics and Geography (Instituto Nacional de Estadística y Geografía), Mexican Classification of Activities and Products (Clasificación Mexicana de Actividades y Productos), 1994.

The term "concession" means an authorisation provided by the Mexican State to a person to exploit a natural resource or provide a service, for which Mexican nationals and Mexican enterprises are granted priority over foreigners.

The term "foreigners' exclusion clause" means the express provision in an enterprise's by-laws, stating that the enterprise shall not allow foreigners, directly or indirectly, to become partners or shareholders of the enterprise.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 27

Foreign Investment Law (Ley de Inversión Extranjera), Title II, Chapters I and II

Regulations to the Foreign Investment Law and the National Registry for Foreign Investment (Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras), Title II, Chapters I and II

Description: Investment

Foreign nationals or foreign enterprises may not acquire property rights (dominio directo) over land and water in a 100-kilometre strip along the country's borders or in a 50-kilometre strip inland from its coasts (Restricted Zone).

Mexican enterprises without a foreigners' exclusion clause may acquire property rights (dominio directo) over real estate located in the Restricted Zone, used for non-residential purposes. Notice of the acquisition must be given to the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE) within 60 business days following the date of acquisition.

Mexican enterprises without a foreigners' exclusion clause may not acquire property rights (dominio directo) over real estate located in the Restricted Zone, used for residential purposes.

Pursuant to the procedure described below, Mexican enterprises without a foreigners' exclusion clause may acquire rights for the use and enjoyment over real estate in the Restricted Zone, used for residential purposes. Such a procedure shall also apply when foreign nationals or foreign enterprises seek to acquire rights for the use and enjoyment over real estate in the Restricted Zone regardless of the purpose for which the real estate is used.

A permit from the SRE is required for credit institutions to acquire, as trustees, rights to real estate located in the Restricted Zone, when the purpose of the trust is to allow the use and enjoyment of such real estate, without granting real property rights thereof, and the trust beneficiaries are the Mexican enterprises without a foreigners' exclusion clause, or the foreign nationals or foreign enterprises referred to above.

The terms "use" and "enjoyment" of the real estate located in the Restricted Zone mean the rights to use or enjoy such real estate, including, as applicable, obtaining benefits, products and, in general, any yield resulting from lucrative operation and exploitation through third parties or through the credit institutions acting as trustees.

The duration of the trust referred to in this entry shall be for a maximum period of 50 years, which may be renewed on request by the interested party.

The SRE can verify at any time the compliance with the conditions under which the permits referred to in this entry are granted, as well as the submission and veracity of the notices mentioned above.

The SRE shall decide on the permits, considering the economic and social benefits that these operations could have on the Nation.

Foreign nationals or foreign enterprises seeking to acquire real estate outside the Restricted Zone, shall previously submit to the SRE a statement agreeing to consider themselves Mexican nationals for the above mentioned purposes, and waiving the right to invoke the protection of their governments with respect to such real estate.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Market Access (Article 10.5)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera),Title VI, Chapter III

Description: Investment and Cross-Border Trade in Services

The National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE), in order to evaluate applications submitted for its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria:

(a) the effects on employment and training of workers;

(b) the technological contribution;

(d) in general, the contribution to increase the competitiveness of the Mexican productive system.

When deciding on an application, the CNIE may only impose requirements that do not distort international trade and that are not prohibited by Article 9.10 (Performance Requirements).

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera),Title I, Chapter III

As qualified by the Description element

Description: Investment

Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to participate, directly or indirectly, in more than 49 per cent of the ownership interest of a Mexican enterprise in an unrestricted sector, only when the total value of the assets of the Mexican enterprise exceeds the applicable threshold at the time the application for acquisition is submitted.

The applicable threshold for the review of an acquisition of a Mexican enterprise shall be the amount determined by the CNIE. The threshold at the date of entry into force of this Agreement for Mexico will be the equivalent in Mexican pesos to one billion US dollars, using the official exchange rate on October 5th, 2015.

Each year, the threshold will be adjusted according to the nominal growth rate of the Mexican Gross Domestic Product, as published by the National Institute for Statistics and Geography (Instituto Nacional de Estadística y Geografía, INEGI).

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 25

General Law of Cooperative Companies (Ley General de Sociedades Cooperativas), Title I, and Title II, Chapter II

Federal Labor Law (Ley Federal del Trabajo), Title I

Foreign Investment Law (Ley de Inversión Extranjera),Title I, Chapter III

Description: Investment

No more than 10 per cent of the persons participating in a Mexican cooperative production enterprise may be foreign nationals.

Investors of another Party or their investments may only own, directly or indirectly, up to 10 per cent of the ownership interest in a Mexican cooperative production enterprise.

No foreign nationals may engage in general administrative functions or perform managerial activities in that enterprise.

A cooperative production enterprise is an enterprise whose members join their personal work, whether physical or intellectual, with the purpose of producing goods or services.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Federal Law to Foster the Microindustry and Handicraft Activity (Ley Federal para el Fomento de la Microindustria y la Actividad Artesanal), Chapters I, II, III and IV

Description: Investment

Only Mexican nationals may apply for a licence (cédula) to qualify as a microindustry enterprise.

Mexican microindustry enterprises may not have foreign persons as partners.

The Federal Law to Foster the Microindustry and Handicraft Activity (Ley Federal para el Fomento de la Microindustria y Actividad Artesanal) defines "microindustry enterprise" as the enterprise integrated by up to 15 workers, that is engaged in the transformation of goods, and whose annual sales do not exceed the amount determined periodically by the Ministry of Economy (Secretaría de Economía, SE).

Sector: Agriculture, Livestock, Forestry, and Lumber Activities

Sub-Sector: Agriculture, livestock or forestry

Industry Classification: CMAP 1111 Agriculture

CMAP 1112 Livestock and hunting (limited to livestock)

CMAP 1200 Forestry and felling Trees

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 27

Agrarian Law (Ley Agraria), Title VI

Foreign Investment Law (Ley de Inversión Extranjera),Title I, Chapter III

Description: Investment

Only Mexican nationals or Mexican enterprises may own land for agriculture, livestock or forestry purposes. Such enterprises must issue a special type of share ("T" share) representing the value of that land at the time of its acquisition.

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of "T" shares.

Sector: Retail Trade

Sub-Sector: Sale of non-food products in specialised establishments

Industry Classification: CMAP 623087 Retail Trade of Firearms, Cartridges and Munitions

CMAP 612024 Wholesale Trade Not Elsewhere Classified (limited to firearms, cartridges and munitions)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico that is engaged in the sale of explosives, firearms, cartridges, ammunition and fireworks, excluding the acquisition and use of explosives for industrial and extractive activities, and the preparation of explosive mixtures for such activities.

Sector: Communications

Sub-Sector: Broadcasting (radio and free to air television)

Industry Classification: CMAP 941104 Private Production and Transmission of Radio Programs (limited to production and transmission of sound broadcasting (radio) programs)

CMAP 941105 Private Services of production, Transmission and Retransmission of Television Programming (limited to transmission and retransmission of free-to-air television programming)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles 28 and 32 Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión), Title IV, Chapters I, III and IV, Title XI, Chapter II

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapter III (when it does not oppose to the Federal Telecommunication and Broadcasting Law)

Regulations to the Radio and Television Federal Law, in the Matter of Concessions, Permits and Content of Radio and Television Transmissions (Reglamento de la Ley Federal de Radio y Televisión, en Materia de Concesiones, Permisos y Contenido de las Transmisiones del Radio y Televisión)

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapters II and III

Regulations to the Foreign Investment Law and the National

Registry for Foreign Investment (Reglamento de la Ley de

Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras), Title VI

Description: Investment and Cross-Border Trade in Services

According to their purposes, sole concessions and frequency band concessions will be granted only to Mexican nationals or enterprises constituted under Mexican laws and regulations.

Investors of a Party or their investments may participate up to 49 per cent in concessionaire enterprises providing broadcasting services. This maximum foreign investment, will be applied according to the reciprocity existent with the country in which the investor or trader who ultimately controls it, directly or indirectly, is constituted.

For the purposes of the above paragraph, a favourable opinion of the Mexican Foreign Investment Commission is required before granting the sole concession for providing broadcasting services in which foreign investment participate.

Among concessions, concessions for indigenous social use shall be granted to indigenous people and indigenous communities of Mexico, with the objective to promote, develop and preserve languages, culture, knowledge, traditions, identity and their internal rules that, under principles of gender equality, enable the integration of indigenous women in the accomplishment of the purposes for which the concession is granted.

Under no circumstances may a concession, the rights conferred therein, facilities, auxiliary services, offices or accessories and properties affected thereto, be assigned, encumbered, pledged or given in trust, mortgaged, or transferred totally or partially to any foreign government or state.

The State shall guarantee that the broadcasting promotes the values of national identity. The broadcasting concessions shall use and stimulate local and national artistic values and expressions of Mexican culture. The daily programme starring actors shall include a larger time covered by Mexicans.

Sector: Communications

Sub-Sector: Telecommunications (Including resellers and restricted television and audio service)

Industry Classification: CMAP 720006 Other Telecommunications Services (limited to satellite communications)

CMAP 720006 Other Telecommunications services (Not including Enhanced or Value Added Services)

CMAP 502003 Telecommunications installations

CMAP 720006 Other Telecommunications Services (limited to resellers)

Obligations Concerned:

National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 28

Federal Telecommunications and Broadcasting Law (Ley

Federal de Telecomunicaciones y Radiodifusión),Title IV, Chapters I, III and IV, Title V, chapter VIII, and Title VI, Unique Chapter

General Means of Communication Law (Ley de Vías Generales de Comunicación) (when it does not oppose to the Federal Telecommunications and Broadcasting Law)

Foreign Investment Law (Ley de Inversión Extranjera) Title I, Chapter II

Regulations to the Foreign Investment Law and the National

Registry for Foreign Investment (Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras), Title VI

Description: Investment and Cross-Border Trade in Services

According to their purposes, sole concessions and frequency band concessions will be granted only to Mexican nationals or enterprises constituted under Mexican Laws and regulations.

Concessions for indigenous social use shall only be granted to indigenous people and indigenous communities in Mexico without any kind of foreign investment.

Under no circumstances may a concession, the rights conferred therein, facilities, auxiliary services, offices or accessories and properties affected thereto, be assigned encumbered, pledged or given in trust, mortgaged, or transferred totally or partially to any foreign government or state.

Only Mexican nationals and enterprises established under Mexican laws may obtain authorisation to provide telecommunication services as a reseller without being a concessionaire.

Sector: Communications

Sub-Sector: Transportation and telecommunications

Industry Classification: CMAP 7200 Communications (including telecommunications and postal services)

CMAP 7100 Transport

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures Ports Law (Ley de Puertos), Chapter IV

Regulatory Law of the Railway Service (Ley Reglamentaria del Servicio Ferroviario), Chapter II, Section III

Civil Aviation Law (Ley de Aviación Civil), Chapter III, Section III

Airports Law (Ley de Aeropuertos), Chapter IV

Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal), Title I, Chapter III

Federal Telecommunications and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión),Title IV, Chapters I, III and IV

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters III and V

Description: Investment

Foreign governments and foreign States may not invest, directly or indirectly, in Mexican enterprises engaged in communications, transportation and other general means of communications.

Sector: Transportation

Sub-Sector: Land transportation and water transportation

Industry Classification: CMAP 501421 Construction of Maritime and River Works

CMAP 501422 Construction of Roadworks and Works for Land Transport

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal),Title I, Chapter III

Ports Law (Ley de Puertos), Chapter IV

Commercial and Navigation Maritimes Law (Ley de Navegación y Comercio Marítimos), Title I, Chapter II

Description: Investment and Cross-Border Trade in Services

A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to construct and operate, or only operate, marine or river works.

A concession is also required to build, operate, exploit, conserve or maintain federal roads and bridges.

Only Mexican nationals and Mexican enterprises may obtain such a concession.

Sector: Energy

Sub-Sector: Oil and other hydrocarbons exploration and production

Transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, as well as the users of such products and services.

Exporting and importing of hydrocarbons and petroleum products

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles 25, 27 and 28

Hydrocarbons Law (Ley de Hidrocarburos), Articles 1, 3, 5, 6, 11, 18, 41, 46, 83, 120, 128 and Twenty Fourth Transitory Provision

Foreign Trade Law (Ley de Comercio Exterior)

Hydrocarbons Law Regulations (Reglamento de la Ley de Hidrocarburos), Articles 14 and 36.

Regulation of the activities referred to by the Third Title of theHydrocarbons Law (Reglamento de las actividades a que se refiere el Título Tercero de la Ley de Hidrocarburos), Article 51

Methodology for the Measurement of the National Content in the Entitlements and Exploration and Production Contracts of Hydrocarbons, and the permits in the Hydrocarbons Industry, issued by the Ministry of Economy (Metodología para la Medición del Contenido Nacional en Asignaciones y Contratos para la Exploración y Extracción de Hidrocarburos, así como para los permisos en la Industria de Hidrocarburos, emitida por la Secretaría de Economía)

Description: Investment and Cross-Border Trade in Services

The Nation has the direct, inalienable and imprescriptible ownership of all hydrocarbons in the subsoil of the national territory, including the continental shelf and the exclusive economic zone located outside the territorial sea and adjacent thereto, in strata or deposits, regardless of their physical conditions. Only the Nation shall conduct the exploration and production of hydrocarbons, through entitlements or contracts.

The exploration and production contracts shall invariably stipulate that the hydrocarbons in the subsoil are property of the Nation.

The Ministry of Energy (Secretaría de Energía) shall establish the appropriate contract model for each contractual area that undergoes a bidding process and is awarded according to the laws; for which it may choose among other contracting models: services, profit-sharing, production-sharing or licenses.

The exploration and production activities of hydrocarbons conducted in the national territory through entitlements and exploration and production contracts must comply with a minimum national content percentage goal on average. This national content average goal will not take into account exploration and production of hydrocarbons in deep-water and ultra-deep water, which will have a different national content requirement established by the Ministry of Economy (Secretaría de Economía, SE) with the opinion of the Ministry of Energy considering the characteristics of those activities.

The above mentioned mandate must comply with the methodology established by the Ministry of Economy, and must consider that it does not affect the competitive position of the Petróleos Mexicanos (PEMEX) or any other state productive enterprises and other economic agents developing exploration and production of hydrocarbons.

The Federal Executive shall establish safeguard zones in the areas in which the State decides to prohibit exploration and production activities, different from protected natural areas in which entitlements and contracts cannot be awarded.

The Mexican Government should include within the conditions for the entitlements and exploration and production contracts, as well as in the permits, that under the same circumstances of prices, quality and timely delivery, preference should be given to the purchase of national goods and the contracting of domestic services, including the training and hiring, at a technical and management level, of Mexican nationals.

The Ministry of Energy and the Energy Regulatory Commission (Comisión Reguladora de Energía, CRE) will establish the permit models for the transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, taking into account that permit-holders must have an address in Mexico. The permits for the exporting and importing of hydrocarbons and petroleum products will be issued according to the Foreign Trade Law, which requires permit-holders to have a domicile in Mexico.

Sector: Energy

Sub-Sector: Oil and other hydrocarbons exploration and production

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles, 25, 27 and 28.

Decree amending and supplementing various provisions of the Articles 25, 27 and 28 of the United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos)

Hydrocarbons Law (Ley de Hidrocarburos), Articles 1, 3, 5, 6, 8, 11, 12, 16, 17, 18, 19, 29, 41, 46 83, 122, 128 and transitory provisions 8, 24, and 28

Petróleos Mexicanos Law (Ley de Petróleos Mexicanos), Articles 2, 4, 5, 7, 59, 63, 76, 77, and 78.

Hydrocarbons Law Regulations (Reglamento de la Ley de Hidrocarburos), Articles 14 and 36

Description: Investment and Cross-Border Trade in Services

The Ministry of Energy (Secretaría de Energía), with technical assistance from the National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos), might award entitlements to Petróleos Mexicanos (PEMEX), as a state productive enterprise, for the exploration and production of hydrocarbons. In that regard, PEMEX may only transfer an entitlement to another state productive enterprise.

In order to perform the activities related to the entitlements, PEMEX shall only execute service contracts with private parties.

The State may mandate PEMEX through its entitlements, exploration and production contracts, and permits, to include preferences for the purchase of national goods, contracting domestic services, as well as a preference for nationals, including technicians and senior management.

The above mentioned mandate must comply with the methodology established by the Ministry of Economy (Secretaría de Economía, SE), and consider that it does not affect the competitive position of the state productive enterprise and other economic agents developing exploration and production of hydrocarbons.

The Ministry of Energy (Secretaría de Energía) might establish a direct participation for PEMEX, or another state productive enterprise, in the contracts for exploration and production of hydrocarbons, when the contractual area coexists with an entitlement, when there are opportunities to transfer knowledge and technology, and when there is the possibility of finding a transboundary reservoir.

Until December 31, 2017 PEMEX may be the sole entity in charge of the commercialisation of hydrocarbons. Until December 31, 2016 PEMEX will be the only permit-holder for the importing and exporting of gasolines and diesel.

The Ministry of Energy (Secretaría de Energía) and the Energy Regulatory Commission (Comisión Reguladora de Energía) will establish the permit models for the transportation, treatment, refining, processing, storage, distribution, compression, liquefaction, decompression, regasification, sale to the public and commercialisation of hydrocarbons, petroleum products and petrochemicals, taking into account that permit-holders must have an address in Mexico. The permits for the exporting and importing of hydrocarbons and petroleum products will be issued according to the Foreign Trade Law, which requires permit holders to have a domicile in Mexico.

Sector: Energy

Sub-Sector: Electricity

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Decree amending and supplementing various provisions of Articles 25, 27 and 28 of the United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos)

Electric Industry Law (Ley de la Industria Eléctrica), Articles 30, 91, 93, and 130

Federal Electricity Commission Law (Ley de la Comisión Federal de Electricidad), Articles 5 and 78

Hydrocarbons Law (Ley de Hidrocarburos), Article 128

Geothermal Energy Law (Ley de Energía Geotérmica), Article 30

Description: Investment and Cross-Border Trade in Services

Through contracts, private persons, on behalf of the Nation, may perform, among other activities, the financing, installation, maintenance, management, operation and expansion of the infrastructure needed to provide the public service of transmission and distribution of electricity.

The modalities of contracts to perform the above mentioned activities must be subject to a minimum percentage of national content, which will be determined by the Ministry of Energy (Secretaría de Energía) and the Energy Regulatory Commission (Comisión Reguladora de Energía) with the opinion of the Ministry of Economy (Secretaría de Economía), except when there are not national suppliers to fulfill that requirement.

Regarding all other corporate activities of the Federal Electricity Commission (Comisión Federal de Electricidad, CFE), and its subsidiary productive enterprises, according to CFE's Law the Board of Directors will issue regulations for the acquisition, leasing, contracting of services and execution of works. Among others, the Board may require minimum national content percentages according to the nature of the contracting, the tariff regulation and in accordance with the international treaties in which Mexico is a signatory.

The Ministry of Energy and the Energy Regulatory Commission, with the opinion of the Ministry of the Economy, should include within the conditions for the assignation and Exploration and Production contracts, as well as for the permits, that under the same circumstances of prices, quality, and timely delivery, preference should be given to the purchase of national goods and the hiring of domestic services, including training and hiring, at a technical and management level, persons with Mexican nationality.

The Ministry of Energy will grant permits for the exploration and concessions for the exploitation of areas with geothermal resources to natural persons or to enterprises incorporated under the Mexican legislation, in order to generate electricity or for other purposes. All permits granted under the Electric Industry Law will be granted by the Energy Regulatory Commission (Comisión Reguladora de Energía (CRE)). Permit holders must be natural persons or enterprises incorporated under the Mexican legislation.

Sector: Energy

Sub-Sector: Hydrocarbons and petroleum products

Industry Classification: CMAP 626000 Retail Trade of Gasoline and Diesel (including lubricants, oils and additives sold at service stations)

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Hydrocarbons Law (Ley de Hidrocarburos) Transitory Provision 14

Regulation of the activities referred to by the Third Title of the Hydrocarbons Law (Reglamento de las actividades a que se refiere el Título Tercero de la Ley de Hidrocarburos), Article 51

Description: Cross-Border Trade in Services

Permits for the sale to the public of gasoline and diesel fuel will be granted by the Energy Regulatory Commission (Comisión Reguladora de Energía, CRE) starting on January 1, 2016 to economic agents established in the Mexican territory.

Sector: Energy

Sub-Sector: Hydrocarbons and petroleum products (supply of fuel and lubricants for aircraft, ships and railway equipment)

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Description: Investment

Investors of another Party or their investments may own, directly or indirectly, up to 49 per cent of the ownership interest of a Mexican enterprise which supplies fuel and lubricants for aircraft, vessels and railway equipment.

Sector: Energy

Sub-Sector:

Industry Classification: CMAP 623090 Retail Trade of other Articles and Goods Not Elsewhere Classified (limited to distribution, transportation and storage of natural gas)

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Hydrocarbons Law (Ley de Hidrocarburos), Article 48 Regulation of the activities referred to by the Third Title of the Hydrocarbons Law (Reglamento de las actividades a que se refiere el Título Tercero de la Ley de Hidrocarburos), Article 51

Description: Cross-Border Trade in Services

A permit granted by the Energy Regulatory Commission (Comisión Reguladora de Energía, CRE) is required to provide services of commercialisation, distribution, transportation, storage compression, decompression, liquefaction, regasification and sale to the public of natural gas, to economic agents established in the Mexican territory. To obtain such permit the interested party must prove that they have their domicile in Mexico.

Sector: Printing, Editing and Associated Industries

Sub-Sector: Newspaper publishing

Industry Classification: CMAP 342001 Publishing of Newspapers, Magazines and Periodicals (limited to newspapers)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

As qualified by the Description element

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in the printing or publication of dailynewspapers written primarily for a Mexican audience and distributed in the territory of Mexico.

For the purposes of this entry, daily newspapers are those published at least five days a week.

Sector: Manufacture of Goods

Sub-Sector: Explosives, fireworks, firearms and cartridges

Industry Classification: CMAP 352236 Manufacture of Explosives and Fireworks CMAP 382208 Manufacture of Firearms and Cartridges

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico that manufactures explosives, fireworks, firearms, cartridges and ammunition, excluding the preparation of explosive mixtures for industrial and extractive activities.

Sector: Fishing

Sub-Sector: Fishing-related services

Industry Classification: CMAP 1300 Fishing

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

General Law on Sustainable Fishing and Aquaculture (Ley General de Pesca y Acuacultura Sustentables), Title Six, Chapter IV; Title Seven, Chapter II

Law of Navigation and Maritime Commerce (Ley de Navegación y Comercio Marítimos), Title I, Chapter I; Title II, Chapter IV, Title Three, Chapter II

Ports Law (Ley de Puertos), Chapters I, IV and VI

Regulations to the Fishing Law (Reglamento de la Ley de Pesca), Title Two Chapter I; Chapter II, Sixth Section

Description: Cross-Border Trade in Services

A permit issued by the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food (Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca, y Alimentación, SAGARPA) through the National Commission of Aquaculture and Fishing (Comisión Nacional de Acuacultura y Pesca, CONAPESCA); or by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT), in the scope of their competence, is required to engage in fishing activities.

A permit issued by SAGARPA is required to carry out activities, such as fishing jobs needed to justify applications for a concession, and the installation of fixed fishing gear in federal waters. Such permit shall be given preferentially to residents of local communities. In equal circumstances, applications of indigenous communities will be preferred.

An authorisation issued by SCT is required for foreign-flagged vessels to provide dredging services.

A permit issued by SCT is required to provide port services related to fishing, like loading operations and supply vessels, maintenance of communication equipment, electricity works, garbage or waste collection and sewage disposal. Only Mexican nationals and Mexican enterprises may obtain such permit.

Sector: Fishing

Sub-Sector: Fishing

Industry Classification: CMAP 130011 Fishing on the High Seas

CMAP 130012 Coastal Fishing

CMAP 130013 Fresh Water Fishing

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: General Law on Sustainable Fishing and Aquaculture (Ley General de Pesca y Acuacultura Sustentables), Title VI, Chapter IV; Title VII, Chapter I; Title XIII, Unique Chapter; Title XIV, Chapter I,II and III

Law on Navigation and Maritime Commerce (Ley de Navegación y Comercio Marítimos), Title II, Chapter I

Sea Federal Law (Ley Federal del Mar), Title I, Chapters I and III

National Waters Federal Law (Ley de Aguas Nacionales), Title I, and Title IV, Chapter I

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Regulations to the Fishing Law (Reglamento de la Ley de Pesca), Title I, Chapter I; Title II, Chapters I, III, IV, V, and VI: Title III, Chapters III and IV

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico performing coastal fishing, fresh water fishing and fishing in the Exclusive Economic Zone, excluding aquaculture.

Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico performing fishing on the high seas.

Sector: Educational Services

Sub-Sector: Private schools

Industry Classification: CMAP 921101 Private Pre-school Educational Services CMAP 921102 Private Primary Educational Services

CMAP 921103 Private Secondary Educational Services

CMAP 921104 Private High School Educational Services

CMAP 921105 Private Higher Education Services

CMAP 921106 Private Education Services that Combine Pre

school, Primary, Secondary, High School and Higher Education Levels

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Law for the Coordination of Higher Education (Ley para la Coordinación de la Educación Superior), Chapter II

General Law of Education (Ley General de Educación), Chapter III

Description: Investment

Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interest in an enterprise established or to be established in the territory of Mexico that provides pre school, primary, secondary, high school, higher and combined private educational services.

Sector: Professional, Technical and Specialised Services

Sub-Sector: Medical services

Industry Classification: CMAP 9231 Medical, Dental and Veterinary Services provided by the Private Sector (limited to medical services)

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Federal Labor Law (Ley Federal del Trabajo), Chapter I

Description: Cross-Border Trade in Services

Only Mexican nationals licensed as doctors in the territory of Mexico may supply in-house medical services in Mexican enterprises.

Sector: Professional, Technical and Specialised Services

Sub-Sector: Specialised personnel

Industry Classification: CMAP 951012 Services of Customs and Representative Agencies

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central

Measures: Customs Law (Ley Aduanera), Title II, Chapters I and III, and Title VII, Chapter I

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter II

Description: Investment and Cross-Border Trade in Services

Only a Mexican national by birth may be a customs broker.

Only customs brokers acting as consignees or legal representatives (mandatarios) of an importer or exporter, as well as customs broker's assignees, may carry out the formalities related to the customs clearance of the goods of such importer or exporter.

Investors of another Party or their investments may not participate, directly or indirectly, in a customs broker's agency.

Sector: Professional, Technical and Specialised Services

Sub-Sector: Specialised services (Commercial Notary Public)

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Commercial Notary Public Federal Law (Ley Federal de Correduría Pública), Articles 7, 8, 12 and 15

Regulations to the Commercial Notary Public Federal Law (Reglamento de la Ley Federal de Correduría Pública), Chapter I, and Chapter II, Sections I and II

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter II

Description: Investment and Cross-Border Trade in Services

Only a Mexican national by birth may be licensed to be a commercial notary public (corredor público).

A commercial notary public may not have a business affiliation with any person for the supply of commercial notary public services.

A commercial notary public shall establish an office in the place where he has been authorised to practise.

Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may obtain such a licence. Foreign investment may not participate in commercial notary public activities and companies, directly or through trusts, agreements, social pacts or statutory, pyramiding schemes, or other mechanism that gives them some control or participation.

Sector: Professional, Technical and Specialised Services

Sub-Sector: Professional services

Industry Classification: CMAP 951002 Legal Services (including foreign legal consultancy)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Level of Government: Central

Measures: Regulatory Law of the Constitutional Article 5th relating to the Practice of the Professions in the Federal District (Ley Reglamentaria del Artículo 5º Constitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal), Chapter III, Section III, and Chapter V

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Description: Investment and Cross-Border Trade in Services

Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to own, directly or indirectly, more than 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico that provides legal services.

In the absence of an international treaty on the matter, the professional practice by foreigners will be subject to reciprocity in the place of residence of the applicant and to compliance with the rest of the requirements established in the Mexican laws and regulations.

Except as provided for in this entry, only lawyers licensed in Mexico may have an ownership interest in a law firm established in the territory of Mexico.

Lawyers licensed to practise in another Party will be permitted to form a partnership with lawyers licensed in Mexico.

The number of lawyers licensed to practise in another Party serving as partners in a firm in Mexico may not exceed the number of lawyers licensed in Mexico serving as partners of that firm. Lawyers licensed to practise in another Party may practise and provide legal consultations on Mexican law, whenever they comply with the requirements to practise as a lawyer in Mexico.

A law firm established by a partnership of lawyers licensed to practise in another Party and lawyers licensed to practise in Mexico may hire lawyers licensed in Mexico as employees.

For greater certainty, this entry does not apply to the supply, on a temporary fly-in, fly-out basis or through the use of web based or telecommunications technology, of legal advisory services in foreign law and international law and, in relation to foreign and international law only, legal arbitration and conciliation/mediation services by foreign lawyers.

Sector: Professional, Technical and Specialised Services

Sub-Sector: Professional services

Industry Classification: CMAP 9510 Provision of Professional, Technical and Specialised Services (limited to professional services)

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Regulatory Law of the Constitutional Article 5threlating to the Practice of the Professions in the Federal District (Ley reglamentaria del Artículo 5º Constitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal), Chapter III, Section III, and Chapter V

Regulations to the Regulatory Law of the Constitutional Article 5th relating to the Practice of the Professions in the Federal District (Reglamento de la Ley Reglamentaria del Artículo 5ºConstitucional, relativo al Ejercicio de las Profesiones en el Distrito Federal), Chapter III Population General Law (Ley General de Población), Chapter III

Description: Cross-Border Trade in Services

Pursuant to the relevant international treaties of which Mexico is a party; foreigners may practice in the Federal District the professions set forth in the Regulatory Law of the Constitutional Article 5 related to the Practice of the Professions in the Federal District.

Sector: Religious Services

Sub-Sector:

Industry Classification: CMAP 929001 Services of Religious Organisations

Obligations Concerned: Senior Management and Boards of Directors (Article 9.11) Local Presence (Article 10.6)

Level of Government: Central

Measures: Religious Associations and Public Worship Law (Ley de Asociaciones Religiosas y Culto Público), Title II, Chapters I and II

Description: Investment and Cross-Border Trade in Services

Representatives of religious associations in Mexico must be Mexican nationals.

Religious associations must be associations constituted in accordance with the Religious Associations and Public Worship Law (Ley de Asociaciones Religiosas y Culto Público).

Religious associations must register before the Ministry of Internal Affairs (Secretaría de Gobernación, SEGOB). To be registered, the religious associations must be established in Mexico.

Sector: Agriculture Services

Sub-Sector:

Industry Classification: CMAP 971010 Provision of Agricultural Services

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

Plant Health Federal Law (Ley Federal de Sanidad Vegetal), Title II, Chapter IV

Regulations to the Phytosanitary Law of the United Mexican States (Reglamento de la Ley de Sanidad Fitopecuaria de los Estados Unidos Mexicanos), Chapter VII

Description: Cross-Border Trade in Services

A concession granted by the Ministry of Agriculture, Livestock, Rural Development, Fishing and Food (Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación, SAGARPA) is required to spray pesticides.

Only Mexican nationals or Mexican enterprises may obtain such a concession.

Sector: Transportation

Sub-Sector: Air transportation

Industry Classification: CMAP 384205 Manufacture, Assembly and Repair of Aircraft (limited to repair of aircrafts)

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Civil Aviation Law (Ley de Aviación Civil), Chapter III, Section II

Civil Aviation Regulations (Reglamento de la Ley de Aviación Civil), Chapter VII

Description: Cross-Border Trade in Services

A permit issued by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to establish and operate, or operate and exploit, an aircraft repair facility and centres for teaching and training of personnel.

To obtain such permission the interested party must prove that the aircraft repair facilities and centres for teaching and training of personnel have their domicile in Mexico.

Sector: Transportation

Sub-Sector: Air transportation

Industry Classification: CMAP 973302 Airport and Heliport Management Services

Obligations Concerned: National Treatment (Article 9.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters I,II and III

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Civil Aviation Law (Ley de Aviación Civil), Chapters I and IVAirports Law (Ley de Aeropuertos), Chapter III

Regulations to the Airports Law (Reglamento de la Ley de Aeropuertos), Title II, Chapters I, II and III

Description: Investment and Cross-Border Trade in Services

A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to construct and operate, or operate, airports and heliports. Only Mexican enterprises may obtain such a concession.

Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to own, directly or indirectly, more than 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico that is a concessionaire or permissionaire of airfields for public service.

When deciding, the CNIE will consider that the national and technological development be favoured, and that the sovereign integrity of the Nation be protected.

Sector: Transportation

Sub-Sector: Air transportation

Industry Classification: CMAP 713001 Scheduled Air Transport Services on Domestically Registered Aircraft

CMAP 713002 Non-Scheduled Air Transport (Air Taxis)

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Civil Aviation Law (Ley de Aviación Civil), Chapters IX and X Regulations to the Civil Aviation Law (Reglamento de la Ley de Aviación Civil), Title II, Chapter I

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

As qualified by the Description element

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 25 per cent of the voting interests in an enterprise established or to be established in the territory of Mexico that provides commercial air services on Mexican registered aircraft. The chairman and at least two-thirds of the boards of directors and two-thirds of the managing officers of such an enterprise must be Mexican nationals.

Only Mexican nationals and Mexican enterprises in which 75 per cent of the voting interest is owned or controlled by Mexican nationals and of which the chairman and at least two thirds of the managing officers are Mexican nationals, may register an aircraft in Mexico.

Sector: Transportation

Sub-Sector: Specialty air services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: General Means of Communications Law (Ley de Vías Generales de Comunicación), Book I, Chapter III

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Civil Aviation Law (Ley de Aviación Civil), Chapters I, II, IV and IX

As qualified by the Description element

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 25 per cent of the voting interests in an enterprise established or to be established in the territory of Mexico that provides specialty air services using Mexican registered aircraft. The chairman and at least two-thirds of the board of directors and two-thirds of the managing officers of such an enterprise must be Mexican nationals.

Only Mexican nationals and Mexican enterprises in which 75 per cent of the voting interests is owned or controlled by Mexican nationals and of which the chairman and at least two thirds of the managing officers are Mexican nationals may register an aircraft in Mexico.

Cross-Border Trade in Services

A permit issued by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to provide all specialty air services in the territory of Mexico. Such a permit may only be granted when the person interested in the supply of these services has domicile in the territory of Mexico.

Sector: Transportation

Sub-Sector: Water transportation

Industry Classification: CMAP 973203 Maritime Port Administration, Lake and Rivers

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Ports Law (Ley de Puertos), Chapters IV and V Regulations to the Ports Law (Reglamento de la Ley de Puertos) Title I, Chapters I and VI

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Description: Investment

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest of a Mexican enterprise authorised to act as an integral port administrator.

Sector: Transportation

Sub-Sector: Water transportation

Industry Classification: CMAP 384201 Manufacture and Repair of Vessels

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters I, II and III

Commercial and Navigation Maritimes Law (Ley de Navegación y Comercio Marítimos), Title I, Chapter II

Ports Law (Ley de Puertos), Chapter IV

Description: Cross-Border Trade in Services

A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to establish and operate, or operate, a shipyard.

Only Mexican nationals and Mexican enterprises may obtain such a concession.

Sector: Transportation

Sub-Sector: Water transportation

Industry Classification: CMAP 973201 Water Transport Loading and Unloading Services (includes operation and maintenance of docks; loading and unloading of vessels at shore-side; marine cargo handling; operation and maintenance of piers; ship and boat cleaning; stevedoring; transfer of cargo between ships and trucks, trains, pipelines and wharves; waterfront terminal operations)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

Commercial and Navigation Maritimes Law (Ley de Navegación y Comercio Marítimos), Title I, Chapter II, and Title II, Chapters IV and V

Ports Law (Ley de Puertos), Chapters II, IV and VI

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters I, II and III

Regulations to the Use and Enjoyment of the Territorial Sea, Water Ways, Beaches, Relevant Federal Coastal Zone and Lands Gained to the Sea (Reglamento para el Uso y Aprovechamiento del Mar Territorial, Vías Navegables, Playas, Zona Federal Marítimo Terrestre y Terrenos Ganados al Mar), Chapter II, Section II

As qualified by the Description element

Description: Investment and Cross-Border Trade in Services

Favourable resolution from the National Commission on Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to own, directly or indirectly, more than 49 per cent of the ownership interest in an enterprise, established or to be established in the territory of Mexico providing port services to vessels for inland navigation such as towing, mooring and tendering.

A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to construct and operate, or operate, maritime and inland port terminals, including docks, cranes and related facilities. Only Mexican nationals and Mexican enterprises may obtain such a concession.

A permit issued by the SCT is required to provide stevedoring and warehousing services. Only Mexican nationals and Mexican enterprises may obtain such a permit.

Sector: Transportation

Sub-Sector: Water transportation

Industry Classification: CMAP 973203 Maritime and Inland (Lake and Rivers Ports Administration)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Commercial and Navigation Maritimes Law (Ley de Navegación y Comercio Marítimos), Title III, Chapter III

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Ports Law (Ley de Puertos), Chapters IV and VI

Description: Investment

Investors of another Party or their investments may only participate, directly or indirectly, up to 49 per cent in Mexican enterprises engaged in the supply of piloting port services to vessels operating in inland navigation.

Sector: Transportation

Sub-Sector: Water transportation

Industry Classification: CMAP 712011 International Maritime Transportation Services

CMAP 712012 Cabotage Maritime Services

CMAP 712013 International and Cabotage Towing Services

CMAP 712021 River and Lake Transportation Services

CMAP 712022 Internal Port Water Transportation Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Level of Government: Central

Measures: Commercial and Navigation Maritimes Law (Ley de Navegación y Comercio Marítimos), Title III, Chapter I

Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Economic Competition Federal Law (Ley Federal de Competencia Económica), Chapter IV

As qualified by the Description element

Description: Investment and Cross-Border Trade in Services

The operation or exploitation of high-seas navigation vessels, including transport and international towing services is open to ship-owners and vessels of all countries, on the basis of reciprocity according to international treaties. With the prior opinion of the Federal Competition Commission (Comisión Federal de Competencia, CFC), the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) may reserve, totally or partially, certain international high-seas freight transportation services, which could only be carried out by Mexican shipping enterprises with Mexican-flagged vessels or vessels reputed as such when the principles of free competition are not respected or the national economy is affected. For greater certainty the previous sentence does not apply to Canada.

The operation and exploitation of cabotage and inland navigation is reserved for Mexican ship-owners with Mexican vessels. When Mexican vessels are not appropriate and available with the same technical conditions, or it is required by the public interest, the SCT may provide temporary navigation permits to operate and exploit to Mexican ship-owners with a foreign vessel in accordance with the following priorities:

(a) Mexican ship-owner with a foreign vessel under a bareboat charter party; and

(b) Mexican ship-owner with a foreign vessel under any type of charter party.

The operation and exploitation in inland navigation and cabotage of tourist cruises as well as dredges and maritime devices for the construction, preservation and operation of ports may be carried out by Mexican or foreign shipping enterprises using Mexican or foreign vessels or maritime devices, on the basis of reciprocity with a Party, endeavouring to give priority to Mexican enterprises and complying with applicable laws.

With the prior opinion of the CFC, the SCT may resolve that totally or partially, certain cabotage or high-seas traffic could only be carried by Mexican shipping enterprises with Mexican vessels or reputed as such in the absence of conditions of effective competition on the relevant market as per the terms of the Economic Competition Federal Law.

Investors of another Party or their investments may only own, directly or indirectly, up to 49 per cent of the ownership interest in a Mexican shipping enterprise or Mexican vessels, established or to be established in the territory of Mexico, which is engaged in the commercial exploitation of vessels for inland and coastal navigation, excluding tourism cruises and exploitation of dredges and maritime devices for the construction, preservation and operation of ports.

Favourable resolution from the National Commission of Foreign Investments (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to own, directly or indirectly, more than 49 per cent of the ownership interest in an enterprise established or to be established in the territory of Mexico engaged in high seas navigation services and port towing services.

Sector: Transportation

Sub-Sector: Non-energy pipelines

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters I, II and III

National Waters Federal Law (Ley de Aguas Nacionales), Title I, Chapter II, and Title IV, Chapter II

Description: Cross-Border Trade in Services

A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to construct and operate, or operate, pipelines carrying goods other than energy or basic petrochemicals.

Only Mexican nationals and Mexican enterprises may obtain such a concession.

Sector: Transportation

Sub-Sector: Railway transportation services

Industry Classification: CMAP 711101 Railway Transport Services

Obligations Concerned: National Treatment (Articles 9.4 and 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter III

Regulatory Law of the Railway Service (Ley Reglamentaria del Servicio Ferroviario) Chapters I and II, Section III

Regulations to the Railway Service (Reglamento del Servicio Ferroviario), Title I, Chapters I, II and III, Title II, Chapters I and IV, and Title III, Chapter I, Sections I and II

Description: Investment and Cross-Border Trade in Services

Favourable resolution from the National Commission of Foreign Investment (Comisión Nacional de Inversiones Extranjeras, CNIE) is required for investors of another Party or their investments to participate, directly or indirectly, in more than 49 per cent of the ownership interest of an enterprise established or to be established in the territory of Mexico engaged in the construction, operation and exploitation of railroads deemed general means of communication, or in the supply of railway transportation public service.

When deciding, the CNIE will consider that the national and technological development be favoured, and that the sovereign integrity of the Nation be protected.

A concession granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to construct, operate and exploit railway transportation services and to provide railway transportation public service. Only Mexican enterprises may obtain such a concession.

A permit issued by SCT is required to provide auxiliary services; the construction of entry and exit facilities, crossings and marginal facilities in the right of way; the installation of advertisements and publicity signs in the right of way; and the construction and operation of bridges over railway lines. Only Mexican nationals and Mexican enterprises may obtain such a permit.

Sector: Transportation

Sub-Sector: Land transportation

Industry Classification: CMAP 973101 Management Services of Passenger Bus Terminals and Auxiliary Services (limited to main bus and

truck terminals and bus and truck stations)

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal), Title I, Chapter III

Regulations to the Enjoyment of the Right of Way of the Federal Roads and Surrounding Zones (Reglamento para el Aprovechamiento del Derecho de Vía de las Carreteras Federales y Zonas Aledañas), Chapters II and IV

Regulations to the Federal Road Transport and Auxiliary Services (Reglamento de Autotransporte Federal y Servicios Auxiliares), Chapter I

Description: Cross-Border Trade in Services

A permit issued by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to establish, or operate, a bus or truck station or terminal. Only Mexican nationals and Mexican enterprises may obtain such a permit.

To obtain such permit the interested party must prove that they have their domicile in Mexico.

Sector: Transportation

Sub-Sector: Land transportation

Industry Classification: CMAP 973102 Management Services of Roads, Bridges and Auxiliary Services

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32 Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal), Title I, Chapter III

Regulations to the Federal Road Transport and Auxiliary Services (Reglamento de Autotransporte Federal y Servicios Auxiliares), Chapters I and V.

Description: Cross-Border Trade in Services

A permit granted by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to provide auxiliary services to federal road transportation. Only Mexican nationals and Mexican enterprises may obtain such a permit.

For greater certainty, auxiliary services are not part of federal road transportation of passengers, tourism or cargo, but they complement their operation and exploitation.

Sector: Transportation

Sub-Sector: Land transportation

Industry Classification: CMAP 711201 Construction Materials Transport Services CMAP 711202 Moving Services

CMAP 711203 Other Specialised Freight Transport Services

CMAP 711204 General Freight Transport Services

CMAP 711311 Long-Distance Passenger Bus and Coach Transport Services

CMAP 711318 School and Tourist Transport Services (limited to tourist transport services)

CMAP 720002 Courier services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter II Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal), Title I, Chapter I and III

Regulations to the Federal Road Transport and Auxiliary Services (Reglamento de Autotransporte Federal y Servicios Auxiliares), Chapter I

As qualified by the Description element

Description: Investment and Cross-Border Trade in Services

Investors of another Party or their investments may not own, directly or indirectly, an ownership interest in an enterprise established or to be established in the territory of Mexico, engaged in transportation services of domestic cargo between points in the territory of Mexico, except for parcel and courier services.

A permit issued by the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) is required to provide inter-city bus services, tourist transportation services or truck services for the transportation of goods or passengers to or from the territory of Mexico.

Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause, using Mexican registered equipment that is Mexican-built or legally imported, and drivers who are Mexican nationals, may provide bus or truck services for transportation of goods or passengers between points in the territory of Mexico.

A permit issued by the SCT is required to provide parcel and courier services. Only Mexican nationals and Mexican enterprises may provide such services.

Sector: Transportation

Sub-Sector: Railway transportation services

Industry Classification: CMAP 711101 Transport Services Via Railway (limited to railway crew)

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Federal Labor Law (Ley Federal del Trabajo), Title VI, Chapter V

Description: Cross-Border Trade in Services

Railway crew members must be Mexican nationals.

Sector: Transportation

Sub-Sector: Land transportation

Industry Classification: CMAP 711312 Urban and Suburban Passenger Bus and Coach Transport Services

CMAP 711315 Motor Vehicle Taxi Transport Services

CMAP 711316 Motor Vehicle Fixed Route Transport Services

CMAP 711317 Transport Services in Motor Vehicles from Taxi-Ranks

CMAP 711318 School and Tourist Transport Services

(limited to school transport services)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central

Measures: Foreign Investment Law (Ley de Inversión Extranjera), Title I, Chapter II

General Means of Communication Law (Ley de Vías Generales de Comunicación), Book I, Chapters I and II

Roads, Bridges and Federal Road Transport Law (Ley de Caminos, Puentes y Autotransporte Federal), Title I, Chapter III

Regulations to the Federal Road Transport and Auxiliary

Services (Reglamento de Autotransporte Federal y Servicios Auxiliares), Chapter I

Description: Investment and Cross-Border Trade in Services

Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may supply local urban and suburban passenger bus services, school bus services, and taxi and other collective transportation services.

Sector: Communications

Sub-Sector: Entertainment services (Cinema)

Industry Classification: CMAP 941103 Private Exhibition of Films

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

National Treatment (Article 10.3)

Level of Government: Central

Measures: Federal Cinematography Law (Ley Federal de Cinematografía), Chapter III

Regulations to the Federal Cinematography Law (Reglamento de la Ley Federal de Cinematografía), Chapter V

Description: Investment and Cross-Border Trade in Services

Exhibitors shall reserve 10 per cent of the total screen time to the projection of national films.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10. 6)

Level of Government: Regional

Measures: All existing non-conforming measures of all states of the United Mexican States

Description: Investment and Cross-Border Trade in Services

ANNEX I

SCHEDULE OF NEW ZEALAND

INTRODUCTORY NOTES

1. Description sets out the non-conforming measure to which the entry applies.

2. In accordance with Article 9.12 (Non-Conforming Measures) and Article 10.7 (Non Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the laws, regulations, rules, procedures, decisions, administrative actions, practices or other measures identified in the Description element of that entry.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Companies Act 1993

Financial Reporting Act 1993

Description: Investment

Consistent with New Zealand's financial reporting regime established under the Companies Act 1993 and Financial Reporting Act 1993, the following overseas non-issuer companies are required to file audited financial statements with the Registrar of Companies:

(a) any company that is incorporated outside New Zealand that carries on business in New Zealand;

(b) any large company incorporated in New Zealand in which shares that carry the right to exercise or control the exercise of 25 per cent or more of the voting power are held by:

(i) a subsidiary of a company or body corporate incorporated outside New Zealand;

(ii) a company or body corporate incorporated outside New Zealand; or

(iii) a person not ordinarily resident in New Zealand; and

A company is "large" if it meets at least two of the following criteria:

(a) the total assets of the company and its subsidiaries exceeds NZ$10 million;

(b) the company and its subsidiaries have a total turnover of NZ$20 million or more; and

These requirements do not apply if the overseas company is a subsidiary of a New Zealand company that has already filed audited group financial statements with the Registrar of Companies.

Sector: Business Services

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Section 100(2)(a) of the Patents Act 1953

Description: Cross-Border Trade in Services

Registration of patent attorneys is restricted to those who satisfy the criteria set out in section 100(2)(a) of the

Patents Act 1953, being any person who is a British subject or a citizen of the Republic of Ireland.

Sector: Agriculture, including services incidental to agriculture

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Dairy Industry Restructuring Act 2001

Description: Investment and Cross-Border Trade in Services

The Dairy Industry Restructuring Act 2001 (DIRA) and Regulations provide for the management of a national database for herd testing data. The database is currently held by the Livestock Improvement Corporation Ltd (LIC).

The DIRA:

(a) provides for the New Zealand government to determine arrangements for the database to be managed by another dairy industry entity. In doing so the New Zealand government may:

(i) take into account the nationality and residency of the entity, persons that own or control the entity, and the senior management and board of directors of the entity; and

(ii) restrict who may hold shares in the entity, including on the basis of nationality;

(b) requires the transfer of data by those engaged in herd testing of dairy cattle to the LIC or successor entity;

(c) establishes rules regarding access to the database and that access may be denied on the basis that its the database's intended use could be "harmful to the New Zealand dairy industry", which may take into account the nationality or residency of the person seeking access.

Sector: Communication Services

Telecommunications

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Constitution of Chorus Limited

Description: Investment

The Constitution of Chorus Limited requires New Zealand government approval for the shareholding of any single overseas entity to exceed 49.9 per cent.

At least half of the Board directors are required to be New Zealand citizens.

Sector: Communication Services

Audio-visual Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Performance Requirements (Article 9.10)

Level of Government: Central

Measures: Radiocommunications Act 1989

Description: Investment and Cross-Border Trade in Services

The acquisition of licences or management rights to use the radio frequency spectrum, or any interest in such licences or management rights, under the Radiocommunications Act 1989 by foreign governments or agents on behalf of foreign governments is subject to the written approval of the Chief Executive of the Ministry of Business, Innovation and Employment.

Sector: Agriculture, including services incidental to agriculture

Obligations Concerned: Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Primary Products Marketing Act 1953

Description: Investment

Under the Primary Products Marketing Act 1953, the New Zealand Government may impose regulations to enable the establishment of statutory marketing authorities with monopoly marketing and acquisition powers (or lesser powers) for "primary products", being products derived from beekeeping, fruit growing, hop growing, deer farming or game deer, or goats, being the fur bristles or fibres grown by the goat.

Regulations may be issued under the Primary Products Marketing Act 1953 concerning a broad range of the marketing authority's functions, powers and activities. In particular, regulations may require that board members or personnel be nationals of or resident in New Zealand.

Sector: Air Transportation

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Civil Aviation Act 1990

Ministerial Guidelines

Description: Investment

Only a licensed air transport enterprise may provide international scheduled air services as a New Zealand international airline. Licences to provide international scheduled air services as a New Zealand international airline are subject to certain conditions to ensure compliance with New Zealand's air services agreements. Such conditions may include requirements that an airline is substantially owned and effectively controlled by New Zealand nationals, has its principal place of business in New Zealand or is subject to the effective regulatory control of the New Zealand Civil Aviation Authority.

Sector: Air Transportation

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Constitution of Air New Zealand Limited

Description: Investment

No one foreign national may hold more than 10 per cent of shares that confer voting rights in Air New Zealand unless they have the permission of the Kiwi Shareholder. In addition:

(a) at least three members of the Board of Directors must be ordinarily resident in New

Zealand; and

(b) more than half of the Board of Directors must be New Zealand citizens.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Overseas Investment Act 2005

Fisheries Act 1996

Overseas Investment Regulations 2005

Description: Investment

Consistent with New Zealand's overseas investment regime as set out in the relevant provisions of the Overseas Investment Act 2005, the Fisheries Act 1996 and the Overseas Investment Regulations 2005, the following investment activities require prior approval from the New Zealand Government:

(a) acquisition or control by non-government sources of 25 per cent or more of any class

of shares2or voting power3in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$200 million;

(b) commencement of business operations or acquisition of an existing business by non government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$200 million;

(c) acquisition or control by government sources of 25 per cent or more of any class of shares4or voting power5in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$100 million;

(d) commencement of business operations or acquisition of an existing business by government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$100 million;

(e) acquisition or control, regardless of dollar value, of certain categories of land that are regarded as sensitive or require specific approval according to New Zealand's overseas investment legislation; and

(f) any transaction, regardless of dollar value, that would result in an overseas investment in fishing quota.

Overseas investors must comply with the criteria set out in the overseas investment regime and any conditions specified by the regulator and the relevant Minister or Ministers.

This entry should be read in conjunction with Annex II – New Zealand – 7 and 8.

Sector: All

Obligations concerned: Performance Requirements (Article 9.10) Level of Government: Central

Measures: Income Tax Act 2007

Goods and Services Tax Act 1985

Estate and Gift Duties Act 1968

Stamp and Cheque Duties Act 1971

Gaming Duties Act 1971

Tax Administration Act 1994

Description: Any existing non-conforming taxation measures.

ANNEX I

SCHEDULE OF PERU

INTRODUCTORY NOTES

1. Description provides a general non-binding description of the measure for which the entry is made.

2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation or other measure identified in the Measures element of that entry.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Political Constitution of Peru (Constitución Política del Perú) (1993), article 71

Legislative Decree N° 757, "El Peruano" Official Gazette of November 13, 1991, Framework Law for Private Investment Growth (Ley Marco para el Crecimiento de la Inversión Privada), article 13

Description: Investment

No foreign national, enterprise constituted under foreign law or enterprise constituted under Peruvian law, and owned in whole or part, directly or indirectly, by foreign nationals may acquire or own, directly or indirectly, by any title, land or water (including mines, forest or energy sources) located within 50 kilometres of the Peruvian border. Exceptions may be authorised by Supreme Decree approved by the Council of Ministers in conformity with law in cases of expressly declared public necessity.

For each case of acquisition or possession within the referred area, the investor shall hand in the correspondent request to the relevant Ministry, pursuant to laws in force. For example, authorisations of this kind have been given in the mining sector.

Sector: Services related to Fishing

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Supreme Decree N° 012-2001-PE, "El Peruano" Official Gazette of March 14, 2001, Regulation of the Fisheries Law (Reglamento de la Ley General de Pesca), articles 67, 68, 69 and 70

Description: Cross-Border Trade in Services

Before commencing operations, shipowners of foreign flagged fishing vessels must present an unconditional, irrevocable, letter of guarantee with automatic execution and joint liability, which will be valid for no more than 30 calendar days after the expiry of the fishing permit, issued for the benefit and to the satisfaction of the Ministry of Production by a financial, banking or insurance institution recognised by the Superintendence of Banking, Insurance and and Private Administrators of Pension Funds (Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones (AFP)). Such letter shall be issued in an amount equal to 25 per cent of the amount that must be paid for fishing rights.

A shipowner of a foreign-flagged fishing vessel that is not of large scale (according to the regulation mentioned above) and that operates in Peruvian jurisdictional waters must have the Satellite Tracking System in its vessel, except for shipowners operating in highly migratory fisheries who are excepted from this obligation by a Ministerial Resolution.

Foreign-flagged fishing vessels with a fishing permit must have on board a scientific technical observer appointed by the Sea Institute of Peru (Instituto del Mar del Perú (IMARPE)). The shipowner must provide accommodation on board for that representative and a daily stipend, which must be deposited in a special account to be administered by IMARPE.

Shipowners of foreign-flagged fishing vessels that operate in Peruvian jurisdictional waters must hire a minimum of 30 per cent of Peruvian crew, subject to applicable domestic legislation.

Sector: Radio and Television Broadcasting Services Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law Nº 28278, "El Peruano" Official Gazette of July 16 2004, Radio and Television Law (Ley de Radio y Televisión), article 24

Description: Investment and Cross-Border Trade in Services

Only Peruvian nationals or juridical persons organised under Peruvian law and domiciled in Peru may be authorised or licensed to offer radio or television broadcast services.

No foreign national may hold an authorisation or a licence directly or through a sole proprietorship.

Sector: Audio-Visual Services

Sub-Sector:

Obligations Concerned: Performance Requirements (Article 9.10) National Treatment (Article 10.3)

Level of Government: Central

Measures: Law Nº 28278, "El Peruano" Official Gazette of July 16, 2004, Radio and Television Law (Ley de Radio y Televisión), Eighth Complementary and Final Provision

Description: Investment and Cross-Border Trade in Services

At least 30 per cent, on average, of the total weekly programs by free-to-air television broadcasters must be produced in Peru and broadcasted between the hours of 05:00 and 24:00.

Sector: Radio Broadcasting Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Level of Government: Central

Measures: Supreme Decree N° 005-2005-MTC, "El Peruano" Official Gazette of February 15, 2005, Regulation of the Radio and

Television Law (Reglamento de la Ley de Radio y Televisión), article 20

Description: Investment and Cross-Border Trade in Services

If a foreign national is, directly or indirectly, a shareholder, partner, or associate in a juridical person, that juridical person may not hold a broadcasting authorisation in a zone bordering that foreign national's country of origin, except in a case of public necessity authorised by the Council of Ministers.

This restriction does not apply to juridical persons with foreign equity which have two or more current authorisations, as long as they are of the same frequency band.

Sector: All

Sub-Sector:

Obligations Concerned: Senior Management and Boards of Directors (Article 9.11)

National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Legislative Decree N° 689, "El Peruano" Official Gazette of November 5, 1991, Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros), articles 1, 3, 4, 5 (modified by Law N° 26196) and 6

Description: Investment and Cross-Border Trade in Services

All employers in Peru, independently of their activity or nationality, shall give preferential treatment to nationals when hiring its employees.

Foreign natural persons who are service suppliers and who are employed by a service-supplying enterprise may supply services in Peru under a written and time-limited employment contract, which may not exceed three years.

The contract may be subsequently extended for like periods of time. Service-supplying enterprises must show proof of the company's commitment to train national personnel in the same occupation.

Foreign natural persons may not represent more than 20 per cent of the total number of employees of an enterprise, and their pay may not exceed 30 per cent of the total payroll for wages and salaries. These percentages will not apply in the following cases:

(a) when the foreign national supplying the service is the spouse, parent, child or sibling of a Peruvian national;

(b) when the personnel is working for a foreign enterprise supplying international land, air and water transport services under a foreign flag and registration;

(c) when the foreign personnel works in a multinational bank or an enterprise that supplies multinational services, subject to the laws governing specific cases;

(d) for a foreign investor, provided that its investment permanently maintains in Peru at least five tax units (Unidad Impositiva Tributaria - UIT)1during the life of its contract;

(e) for artists, athletes or other service suppliers engaged in public performances in Peruvian territory, for a maximum of three months a year;

(f) when a foreign national has an immigrant visa;

(g) for a foreign national whose country of origin has a labour reciprocity or dual nationality agreement with Peru; and

(h) when foreign personnel supplies services in Peru under a bilateral or multilateral agreement concluded by the Peruvian Government.

Employers may request waivers for the percentages related to the number of foreign employees and their share of the company's payroll in those cases involving:

(a) specialised professional or technical personnel;

(b) directors or management personnel for new a business activity or reconverted business activity;

(c) teachers hired for post-secondary education, or for foreign private elementary and high schools; or for language teaching in local private schools; or for specialised language centres;

(d) personnel working for public or private enterprises with contractual agreements with public organisations, institutions or enterprises; and

(e) in any other case determined by Supreme Decree pursuant to specialisation,

qualification or experience criteria.

Sector: Professional Services

Sub-Sector: Legal services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central

Measures: Legislative Decree N° 1049, "El Peruano" Official Gazette of June 26, 2008, Notaries Law (Ley del Notariado), article 10

Description: Investment and Cross-Border Trade in Services

Only a Peruvian national by birth may supply notary services.

Sector: Professional Services

Sub-Sector: Architectural services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central

Measures: Law Nº 14085, "El Peruano" Official Gazette of June 30, 1962, Law establishing the Peruvian Association of Architects (Ley de Creación del Colegio de Arquitectos del Perú)

Law Nº 16053, "El Peruano" Official Gazette of February 14, 1966, Professional Practice Law, authorises the Peruvian Associations of Architects and Engineers to supervise

Engineering and Architecture professionals of the Nation (Ley del Ejercicio Profesional, Autoriza a los Colegios de Arquitectos e Ingenieros del Perú para supervisar a los profesionales de Ingeniería y Arquitectura de la República), article 1

National Architects Council Agreement (Acuerdo del Consejo Nacional de Arquitectos), approved in Session Nº 04-2009 of December 15, 2009

Description: Investment and Cross-Border Trade in Services

To practice as an architect in Peru, an individual must join the Peruvian Association of Architects (Colegio de Arquitectos del Perú). The enrolment fees are different for Peruvians and foreigners, and subject to review by the Peruvian Association of Architects (Colegio de Arquitectos del Perú). For greater transparency, the current enrolment fees are:

(a) S/. 775 for a Peruvian national with a degree from a Peruvian university;

(b) S/. 1,240 for a Peruvian national with a degree from a foreign university;

(d) S/. 3,100 for a foreign national with a degree from a foreign university.

Also, to obtain temporary registration, non-resident foreign architects must have a contract of association with a Peruvian architect residing in Peru.

Sector: Professional Services

Sub-Sector: Auditing services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Rules of the Association of Public Accountants of Lima (Reglamento Interno del Colegio de Contadores Públicos de Lima), articles 145 and 146

Description: Investment and Cross-Border Trade in Services

Auditing societies shall be constituted only and exclusively by public accountants licensed and resident in the country and duly qualified by the Association of Public Accountants of Lima (Colegio de Contadores Públicos de Lima).

Sector: Security Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Supreme Decree N° 003-2011-IN, "El Peruano" Official Gazette of March 31, 2011, Regulation of Private Security

Services (Reglamento de Servicios de Seguridad Privada), articles 12, 18, 22, 36, 40, 41, 46, 47 and 48

Description: Investment and Cross-Border Trade in Services

The supply of personal and heritage security services by natural persons is reserved to Peruvian nationals.

Only juridical persons constituted in Peru may apply for an authorisation to supply security services. They must prove its constitution in Peru by a copy of the registration form of the constitution for the enterprise.

Sector: Recreational, Cultural and Sporting Services

Sub-Sector: National artistic audio-visual production services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Law N° 28131, "El Peruano" Official Gazette of December 18, 2003, Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante), articles 23 and 25

Description: Cross-Border Trade in Services

Any domestic artistic audio-visual production must be comprised at least of 80 per cent of national artists.

Any domestic artistic live performances must be comprised at least of 80 per cent of national artists.

In any domestic artistic audio-visual production and any domestic artistic live performance, national artists shall receive no less than 60 per cent the total payroll for wages and salaries paid to artists.

The same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in artistic activities.

Sector: Recreational, Cultural and Sporting Services

Sub-Sector: Circus services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Law Nº 28131, "El Peruano" Official Gazette of December 18, 2003, Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante), article 26

Description: Cross-Border Trade in Services

A foreign circus may stay in Peru with its original cast for a maximum of 90 days. This period may be extended for the same period of time. If it is extended, the foreign circus will include a minimum of 30 per cent Peruvian nationals as artists and 15 per cent Peruvian nationals as technicians. The same percentages shall apply to the payroll of salaries and wages.

Sector: Commercial Advertising Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Law Nº 28131, "El Peruano" Official Gazette of December 18, 2003, Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante), articles 25 and 27.2

Description: Cross-Border Trade in Services

Commercial advertising produced in Peru, must have at least 80 per cent of national artists.

In any commercial advertising produced in Peru, national artists shall receive no less than 60 per cent of the total payroll for wages and salaries paid to artists.

The same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in commercial advertising.

Sector: Recreational, Cultural and Sporting Services

Sub-Sector: Bullfighting

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Law N° 28131, "El Peruano" Official Gazette of December 18, 2003, Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante), article 28

Description: Cross-Border Trade in Services

At least one bullfighter of Peruvian nationality must participate in any bullfighting fair. At least one apprentice bullfighter of Peruvian nationality must participate in fights involving young bulls.

Sector: Radio and Television Broadcasting Services

Sub-Sector:

Obligations Concerned: Performance Requirements (Article 9.10)

National Treatment (Article 10.3)

Level of Government: Central

Measures: Law N° 28131, "El Peruano" Official Gazette of December 18, 2003, Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante), articles 25 and 45

Description: Investment and Cross-Border Trade in Services

Free to air radio and television broadcast companies must dedicate at least 10 per cent of their daily programming to folklore and national music and to series or programs produced in Peru on the Peruvian history, literature, culture or current issues with artists hired in the following percentages:

(a) a minimum of 80 per cent of national artists;

(b) national artists shall receive no less than 60 per cent of the total payroll for wages and salaries paid to artists; and

(c) the same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in artistic activities.

Sector: Customs Warehouses Services

Sub-Sector:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Supreme Decree Nº 08-95-EF, "El Peruano" Official Gazette of February 5, 1995, Approve the Regulation of Customs

Warehouse (Aprueban el Reglamento de Almacenes Aduaneros), article 7

Description: Cross-Border Trade in Services

Only natural or juridical persons domiciled in Peru may apply for an authorisation to operate a customs warehouse.

Sector: Telecommunications Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Supreme Decree N° 020-2007-MTC, "El Peruano" Official Gazette of July 04, 2007, Consolidated Text of the General

Rules of the Telecommunications Law (Texto Único Ordenado del Reglamento General de la Ley de Telecomunicaciones), article 258

Description: Cross-Border Trade in Services

Call-back, understood as being the offer of telephone services for the realisation of attempts to make calls originating in the country with the objective of obtaining a return call with an invitation to dial, coming from a basic telecommunications network located outside the national territory, is prohibited.

Sector: Transportation

Sub-Sector: Air Transportation and Specialty Air Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law N° 27261, "El Peruano" Official Gazette of May 10, 2000, Civil Aviation Law (Ley de Aeronáutica Civil), articles 75 (modified by Legislative Decree N° 999, April 19, 2008) and 79

Peruvian Aviation Regulation N° 61 (Regulación Aeronáutica del Perú – RAP N° 61), "El Peruano" Official Gazette of December 14, 2013

Supreme Decree N° 050-2001-MTC, "El Peruano" Official Gazette of December 26, 2001, Regulation of the Civil Aviation Law (Reglamento de la Ley de Aeronáutica Civil), articles 159, 160 and VI Complementary Provision

Description: Investment and Cross-Border Trade in Services

National Commercial Aviation2is reserved to a Peruvian natural or juridical person.

For purposes of this entry, a Peruvian juridical person is an enterprise that fulfils the following requirements:

(a) is constituted under Peruvian law, specifies commercial aviation as its corporate purpose, is domiciled in Peru, and has its principal activities and administration located in Peru;

(b) at least half plus one of the directors, managers and persons who control and manage the enterprise are Peruvian nationals or have permanent domicile or are resident in Peru; and

(c) at least 51 per cent of the capital stock must be owned by Peruvian nationals and be under the real and effective control of Peruvian shareholders or partners permanently domiciled in Peru. (This limitation shall not apply to the enterprises constituted under Law Nº 24882, which may maintain the ownership percentages set in such law.) Six months after the date of authorisation of the enterprise to provide commercial air transportation services, foreign nationals may own up to 70 per cent of the capital stock of the enterprise.

In those operations conducted by national commercial aviation operators (explotadores nacionales), personnel performing aeronautical functions on board must be Peruvian nationals or foreign residents with a Peruvian licence.

In order to perform activities as a pilot of a Peruvian juridical person, the foreign pilot must prove, at least, two years of residence in Peru. This requirement is not applicable to the foreign resident who has the immigration category of "spouse" of a Peruvian national.

Notwithstanding the preceding paragraphs, the General Directorate of Civil Aviation (Dirección General de Aeronáutica Civil) may, for technical reasons, authorise foreign personnel without Peruvian licence to perform these functions for a period not to exceed six months from the date on which the authorisation was granted, extendable due to ascertained nonexistence of such skilled personnel.

Sector: Transportation

Sub-Sector: Aquatic transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law Nº 28583, "El Peruano" Official Gazette of July 22, 2005, Law of the Reactivation and Promotion of the National

Merchant Marine (Ley de Reactivación y Promoción de la Marina Mercante Nacional), articles 4.1, 6.1, 7.1, 7.2, 7.4 and 13.6

Law Nº 29475, Law that modifies Law Nº 28583, "El Peruano" Official Gazette of December 17, 2009, Law of the Reactivation and Promotion of the National Merchant Marine (Ley de Reactivación y Promoción de la Marina Mercante Nacional), article 13.6 and Tenth Transitory and Final Provision

Supreme Decree Nº 028 DE/MGP, "El Peruano" Official

Gazette of May 25, 2001, Regulation of the Law Nº 26620　(Reglamento de la Ley Nº 26620), article I-010106, paragraph (a)

Description: Investment and Cross-Border Trade in Services

1. A "National Shipowner" or "National Ship Enterprise" is understood as a natural person of Peruvian nationality or juridical person constituted in Peru, with its principal domicile and real and effective headquarters in Peru, whose business is to provide services in water transportation in national traffic or cabotage3or international traffic and who is the owner or lessee under a financial lease or a bareboat charter, with an obligatory purchase option, of at least one Peruvian flag merchant vessel and that has obtained the relevant Operation Permit from the General Aquatic Transport Directorate (Dirección General de Transporte Acuático).

2. At least 51 per cent of the subscribed and paid-in capital stock must be owned by Peruvian citizens.

3. The chairman of the board of directors, the majority of the directors, and the General Manager must be Peruvian nationals and residents in Peru.

4. The captain and crew of Peruvian-flagged vessels must be entirely Peruvian nationals authorised by the General Directorate of Captaincy and Coastguards (Dirección General de Capitanías y Guardacostas). In exceptional cases and after ascertaining that there is no Peruvian qualified personnel with experience in that type of vessel available, foreign nationals could be hired to a maximum of 15 per cent of the total crew, and for a limited period of time. The latter exception does not include the captain of the vessel.

5. Only a Peruvian national may be a licensed harbour pilot.

6. Cabotage is exclusively reserved to Peruvian flagged merchant vessels owned by a National Shipowner or National Ship Enterprise or leased under a financial lease or a bareboat charter, with an obligatory purchase option, except that:

(a) up to 25 per cent of the transport of hydrocarbons in national waters is reserved for the ships of the Peruvian Navy; and

(b) foreign-flagged vessels may be operated exclusively by National Shipowners or National Ship Enterprises for a non-renewable period of no more than six months for water transportation exclusively between Peruvian ports or cabotage when such an entity does not own its own vessels or lease vessels under the modalities previously mentioned.

Sector: Transportation

Sub-Sector: Aquatic transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Supreme Decree Nº 056-2000-MTC, "El Peruano" Official Gazette of December 31, 2000, Provide that aquatic transportation services and related services conducted in bays and port areas must be provided by authorised natural and juridical persons, with vessels and artifacts of national flag (Disponen que servicios de transporte marítimo y conexos realizados en bahías y áreas portuarias deberán ser prestados por personas naturales y jurídicas autorizadas, con embarcaciones y artefactos de bandera nacional), article 1

Ministerial Resolution Nº 259-2003-MTC/02, "El Peruano" Official Gazette of April 4, 2003, Approve Regulation of Aquatic Transportation services and related services rendered in bay traffic and port areas (Aprueban Reglamento de los servicios de Transporte Acuático y Conexos Prestados en Tráfico de Bahía y Áreas Portuarias), articles 5 and 7

Description: Investment and Cross-Border Trade in Services

Water transport and related services supplied in bay and port areas must be supplied by natural persons domiciled in Peru, and juridical persons constituted and domiciled in Peru, properly authorised with Peruvian flag vessels and equipment:

(a) fuel replenishment services;

(b) mooring and unmooring services;

(d) victualing services;

(e) dredging services;

(f) harbour pilotage services;

(g) waste collection services;

(h) tug boat services; and

(i) transport of persons.

Sector: Transportation

Sub-Sector: Aquatic transportation

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Supreme Decree N° 006-2011-MTC, "El Peruano" Official Gazette of February 4, 2011, Supreme Decree that approves the Regulation of Tourist Water Transportation (Decreto Supremo que aprueba el Reglamento de Transporte Turístico Acuático), article 1

Description: Cross-Border Trade in Services

The tourist water transport service will be provided by natural or juridical persons, domiciled and constituted in Peru. At the regional and national level, the tourist water transport service is reserved to be provided exclusively with own or chartered Peruvian flagged ships or in the form of financial lease or a bareboat charter, with purchase option mandatory.

Sector: Transportation

Sub-Sector: Aquatic transportation

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Law Nº 27866, "El Peruano" Official Gazette of November 16, 2002, Port Labour Law (Ley del Trabajo Portuario), articles 3 and 7

Description: Cross-Border Trade in Services

Only Peruvian citizens may register in the Registry of Port Workers.

Sector: Transportation

Sub-Sector: Land transportation of passengers

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Supreme Decree N° 017-2009-MTC, "El Peruano" Official Gazette of April 22, 2009, National Regulation of Transport

Management (Reglamento Nacional de Administración de Transportes), article 33, modified by Supreme Decree N° 006-2010-MTC of January 22, 2010

Description: Cross-Border Trade in Services

To supply land transport services it is necessary to have adequate physical infrastructure, which includes, when appropriate: offices; bus terminals for persons or goods; route stations; bus stops; all other infrastructure used as a place for loading, unloading and storage of goods; maintenance workshops; and any other necessary for the supply of the service.

Sector Transportation

Sub-Sector: Land transportation

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Agreement on International Land Transport (Acuerdo sobre Transporte Internacional Terrestre - ATIT), signed between the Governments of the Republic of Chile, the Republic of Argentina, the Republic of Bolivia, the Federal Republic of Brazil, the Republic of Paraguay, the Republic of Peru and the Oriental Republic of Uruguay, signed in Montevideo on January 1, 1990.

Description: Cross-Border Trade in Services

Foreign vehicles allowed by Peru, in conformity with the ATIT, which carry out international transportation by road, are not able to supply local transport (cabotage) in the Peruvian territory.

Sector Research and Development Services

Sub-Sector: Archaeological services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Supreme Decree Nº 003-2014-MC, "El Peruano" Official Gazette of October 3, 2014, Regulation of Archaeological

Interventions (Reglamento de Intervenciones Arqueológicas), article 30

Description: Cross-Border Trade in Services

Archaeological research programs and projects headed by a foreign archaeologist, who does not reside in Peru, must have a Peruvian director.

Both directors shall be registered in the National Registry of Archaeologists and shall assume the same responsibilities in the formulation and the integral execution of the project (field and office work), and in the elaboration of the final report.

Sector: Services related to Energy Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Law Nº 26221, "El Peruano" Official Gazette of August 19, 1993, General Law of Hydrocarbons (Ley General de Hidrocarburos), article 15

Description: Cross-Border Trade in Services

In order to enter into an exploration contract in Peru, foreign natural persons must register in the Public Registry and provide a power of attorney to a Peruvian national resident in the capital of the Republic of Peru.

Foreign enterprises must establish a branch or constitute a society under the General Law of Corporations (Ley General de Sociedades), be domiciled in the capital of the Republic of Peru, and appoint a Peruvian national as an executive agent.

ANNEX I

SCHEDULE OF SINGAPORE

INTRODUCTORY NOTES

1. Description sets out the non-conforming aspects of the measure to which the entry applies.

3. In the interpretation of an entry, all elements of the entry shall be considered.

4. For greater certainty, the fact that Singapore has described a measure in the Description element of an entry does not necessarily mean that, in the absence of such an entry, the measure would be inconsistent with Singapore's obligation under Chapter 9 (Investment), Chapter 10 (Cross-Border Trade in Services) and Chapter 11 (Financial Services).

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: This is an administrative policy of the Government of Singapore and is inscribed in the Memorandum and Articles of Association of PSA Corporation.

Description: Investment

The aggregate of foreign shareholdings in PSA Corporation or its successor body is subject to a 49 per cent limit.

The "aggregate of foreign shareholdings" is defined as the total number of shares owned by:

(a) any individual who is not a Singapore citizen;

(b) any corporation which is not more than 50 per cent owned by Singapore citizens or by the Singapore Government; or

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: This is an administrative policy of the Government of Singapore and is inscribed in the Memorandum and Articles of Association of the relevant enterprises below.

Description: Investment

All individual investors, apart from the Singapore government, will be subject to the following equity ownership limits in the enterprises, or its successor bodies, as listed below:

(a) Singapore Technologies Engineering – 15 per cent;

(b) PSA Corporation – 5 per cent; and

For the purposes of this entry, ownership of equity by an investor in these enterprises or its successor bodies includes both direct and indirect ownership of equity.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Business Registration Act, Cap. 32

Business Registration Regulations

Description: Cross-Border Trade in Services

Where a person required to be registered under the Business Registration Act, Cap. 32, 2001 Rev Ed, is, or, in the case of any corporation, the directors are, or the secretary of the corporation is, not ordinarily resident in Singapore, a local manager must be appointed.

Sector: Business Services

Sub-Sector: Leasing or rental services concerning private cars, goods transport vehicles and other land transport equipment without operator

Industry Classification: CPC 83101, 83102, 83105 Leasing or rental services concerning private cars, goods transport vehicles and other land transport equipment without operator

Obligations Concerned: National Treatment (Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Road Traffic Act, Cap. 276, 2004 Rev Ed

Description: Cross-Border Trade in Services

The cross-border rental of private cars, goods transport vehicles and other land transport equipment without operator by Singapore residents with the intent to use the vehicles in Singapore is prohibited.

Sector: Business Services

Sub-Sector: Patent agent services

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Measures: Patents Act, Cap. 221, 2005 Rev Ed

Description: Cross-Border Trade in Services

Only service suppliers registered with the Intellectual Property Office of Singapore (IPOS) or its successor body and resident in Singapore shall be allowed to carry on a business, practise or act as a patent agent in Singapore.

Only service suppliers which have at least one Singapore registered patent agent resident in Singapore either as a director or partner, shall be allowed to carry on a business, practise or act as a patent agent in Singapore.

Sector: Business Services

Sub-Sector: Placement and supply services of personnel

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Employment Agencies Act, Cap. 92

Description: Cross-Border Trade in Services

Only service suppliers with local presence shall be allowed to set up employment agencies and place foreign workers in Singapore.

Sector: Business Services

Sub-Sector: Private investigation services

Unarmed guard services

Industry Classification: CPC 87301 Investigation Services

CPC 87302 Security Consultation Services

CPC 87305 Guard Services (only applies to unarmed security guard services)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Private Security Industry Act, Cap. 250A, 2008 Rev Ed

Description: Investment and Cross-Border Trade in Services

Foreigners are permitted to set up security agencies to provide unarmed guards for hire but must register a company with local participation. At least two of the directors must be a Singapore national.

Foreigners, except Malaysians, shall not be allowed to work as guards, but can be involved in the administration of the company.

The foreign directors shall produce a certificate of no criminal conviction from their country of origin or a statutory declaration before a Singapore commissioner of oaths, to the effect that they have never been convicted in any court of law for any criminal offence.

Sector: Community, Personal and Social Services

Sub-Sector: Services furnished by co-operative societies

Industry Classification: CPC 959 Services furnished by membership organizations n.e.c (only applies to co-operative society services)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Existing Measures: Co-operative Societies Act, Cap. 62, 2009 Rev Ed Co-operative Societies Rules 2009

Description: Investment and Cross-Border Trade in Services

Only service suppliers with a local presence can be registered under the Co-operative Societies Act. Registration allows a cooperative society to be exempt from taxation measures applicable to other enterprises. Instead, co-operative societies are required to make a two-tier contribution of their surplus to the Central Co-operative Fund (CCF) and CCF/Singapore Labour Foundation respectively as the society may opt.

As a general rule, only Singapore citizens are allowed to hold office or be a member of the management committee of a cooperative society. Foreigners may be allowed to hold office or be a member of the management committee of a co-operative society, with the approval of the Registrar of Co-operative Societies.

A person who is not a Singapore citizen can form and join a

co-operative society if he or she is resident in Singapore.

Sector: Education Services

Sub-Sector: Higher education services in relation to the training of doctors

Industry Classification: CPC 92390 Other Higher Education Services (Only applies to Higher Education Services in relation to the training of doctors)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Medical Registration Act, Part V, Specialist Accreditation Board, Sections 2, 3, 34 and 35 Private Education Act, Cap. 247A, 2011 Rev Ed

Description: Investment and Cross-Border Trade in Services

Only local tertiary institutions which are established pursuant to an Act of Parliament, or as designated by the Ministry of Education shall be allowed to operate undergraduate or graduate programmes for the training of doctors in Singapore.

Currently, only the National University of Singapore and the Nanyang Technological University are allowed to operate undergraduate or graduate programmes for the training of doctors in Singapore.

Sector: Health and Social Services

Sub-Sector: Medical services

Pharmacy services

Deliveries and related services, nursing services, physiotherapeutic and para-medical services and allied health services

Optometrists and opticians

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Medical Registration Act, Cap. 174

Pharmacists Registration Act, Cap. 230

Medicines Act, Cap. 176,

Medicines (Registration of Pharmacies) Regulations, Cap. 176, Regulation 4

Nurses and Midwives Act, Cap. 209

Allied Health Professions Act, Act 1 of 2011

Optometrists and Opticians Act, Cap. 213A

Description: Cross-Border Trade in Services

Only persons who are resident in Singapore are allowed to

provide the following services: medical services, pharmacy

services, deliveries and related services, nursing services,

physiotherapeutic and para-medical services and allied health

services and optometry and opticianry services.

Sector: Import, export and trading services

Sub-Sector:

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Regulation of Imports and Exports Act, Cap. 272A Regulation of Imports and Exports Regulations

Description: Cross-Border Trade in Services

Only services suppliers with local presence shall be allowed to apply for import/export permits, certificates of origin or other trade documents from the relevant authorities.

Sector: Postal Services

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Postal Services Act, Cap. 237A

Description: Cross-Border Trade in Services

For the provision of basic letter services, all service suppliers must be incorporated as companies under the Companies Act, Cap. 50, 2006 Rev Ed.

Sector: Telecommunications Services

Sub-Sector: Telecommunications services

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Info-communications Development Authority of Singapore Act, Cap. 137A

Telecommunications Act, Cap. 323

Description: Cross-Border Trade in Services

1. Facilities-based operators and service-based operators must be locally incorporated under the Companies Act, Cap. 50, 2006 Rev Ed.

"Facilities-based operators" are operators who deploy any form of telecommunication networks, systems and facilities, outside of their own property boundaries, to offer telecommunication services to third parties, which may include other licensed telecommunication operators, business customers, or the general public.

"Services-based operators" are operators who lease telecommunication network elements (such as transmission capacity and switching services) from any Facilities-Based Operator (FBO) licensed by the IDA so as to provide their own telecommunication services, or to resell the telecommunication services of FBOs to third parties.

2. The number of licences granted will be limited only by resource constraints, such as the availability of radio frequency spectrum. In view of spectrum constraints, parties interested in deploying networks based on wireless technology may be licensed to use radio frequency spectrum via a tender or auction process.

Sector: Telecommunications Services

Sub-Sector: Telecommunications services

Domain name allocation policies in Internet country code top level domains (ccTLDs) corresponding to Singapore territories (.sg)

Industry Classification:

Obligations concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Info-communications Development Authority of Singapore Act, Cap. 137A

Telecommunications Act, Cap. 323

The Internet Corporation for Assigned Names and Numbers (ICANN), which recognises the ultimate authority of sovereign

Governments over ccTLDs corresponding to their territories.

Description: Cross-Border Trade in Services

A registrar must be a company incorporated or a foreign company registered under the Companies Act, Cap. 50, 2006 Rev Ed.

Sector: Power Supply

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Electricity Act, Cap. 89A, 2002 Rev Ed, Sections 6(1) and 9(1)

Description: Cross-Border Trade in Services

Power producers shall not be allowed to sell power directly to consumers and shall only sell power through the Singapore electricity wholesale market operators licensed by the Energy Market Authority.

The amount of power supplied cumulatively by power producers located outside of Singapore to Singapore's wholesale power market shall not exceed 600 MW.

Sector: Power Supply

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Electricity Act, Cap. 89A, 2002 Rev Ed, Sections 6(1) and 9(1)

Description: Investment and Cross-Border Trade in Services

Only a Market Support Service Licensee shall be allowed to supply electricity to:

(a) all household consumers of electricity; and

(b) non-household consumers of electricity whose average monthly consumption is below 4,000 kWh.

Sector: Power Transmission and Distribution

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Electricity Act, Cap. 89A, 2002 Rev Ed, Sections 6(1) and 9(1)

Description: Investment and Cross-Border Trade in Services

Only a Transmission Licensee shall be the owner and operator of the electricity transmission and distribution network in Singapore.

Sector: Tourism and Travel Related Services

Sub-Sector: Food or beverage serving services in eating facilities run by the government

Food or beverage catering services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Environmental Public Health Act, Cap. 95, 2002 Rev Ed

Description: Investment and Cross-Border Trade in Services

Only a Singapore national can apply for a licence to operate a stall in government-run markets or hawker centres, in their personal capacity.

To supply food or beverage catering services in Singapore, a foreign service supplier must incorporate as a limited company in Singapore, and apply for the food establishment licence in the name of the limited company.

Sector: Sewage and Refuse Disposal, Sanitation and other Environmental Protection Services

Sub-Sector: Waste management, including collection, disposal, and treatment of hazardous waste

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Environmental Public Health Act, Cap. 95

Description: Cross-Border Trade in Services

Foreign service suppliers must be locally incorporated in Singapore.

The public waste collectors (PWCs) rendering services to domestic and trade premises are appointed by public competitive tender. The number of PWCs is limited by the number of geographical sectors in Singapore. For industrial and commercial waste, the market is opened to any licensed general waste collectors (GWCs).

Sector: Trade Services

Sub-Sector: Distribution and Sale of Hazardous Substances

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Environmental Protection and Management Act, Cap. 94A, 2002 Rev Ed, Section 22

Description: Cross-Border Trade in Services

Only service suppliers with a local presence shall be allowed to distribute and sell hazardous substances as defined in the Environmental Protection and Management Act.

Singapore reserves the right and flexibility to modify or increase the list of hazardous substances as defined or listed in the Environmental Protection and Management Act.

Sector: Trade Services

Sub-Sector: Distribution services

Retailing services

Wholesale trade services

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Medicines Act, Cap. 176, 1985 Rev Ed

Health Products Act, Cap. 122D, 2008 Rev Ed

Description: Cross-Border Trade in Services

Only service suppliers with a local presence shall be allowed to supply wholesale, retail and distribution services for medical and health-related products and materials as defined under the Medicines Act and Health Products Act, intended for purposes such as treating, alleviating, preventing or diagnosing any medical condition, disease or injury, as well as any other such items that may have an impact on the health and well being of the human body.

Such products and materials include but are not limited to drugs and pharmaceuticals, traditional medicines, health supplements, diagnostic test kits, medical devices, cosmetics, tobacco products, radioactive materials and irradiating apparatuses.

Singapore reserves the right and flexibility to modify or increase the list of medical and health-related products and materials as defined or listed in the Medicines Act and Health Products Act.

Sector: Transport Services

Sub-Sector: Air transport services

Passengers transportation by air

Freight transportation by air

Industry Classification: CPC 731 Passenger Transportation by Air CPC 732 Freight Transportation by Air

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Air Navigation (Licensing of Air Services) Regulations, Cap. 6, Regulation 2

Description: Investment

Service suppliers providing air transport services (for both passenger and freight) as a Singapore designated airline may have to be "effectively controlled" and/ or "substantially owned" by the Government or citizens of Singapore or both.

Sector: Transport Services

Sub-Sector: Maritime transport services

Cargo handling services

Pilotage Services

Supply of desalinated water to ships berthed at Singapore ports or in Singapore territorial waters

Industry Classification: CPC 741 Cargo Handling Services

CPC 74520 Pilotage and Berthing Services (only applies to Pilotage Services)

CPC 74590 Other Supporting Services for Water Transport

Obligations Concerned: National Treatment (Article 9.4 and Article10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Maritime and Port Authority of Singapore Act, Cap. 170A, 1997 Rev Ed, Section 81

Description: Investment and Cross-Border Trade in Services

Only PSA Corporation Ltd and Jurong Port Pte Ltd or their respective successor bodies shall be allowed to provide cargo handling services.

Only PSA Marine Pte Ltd or its successor body shall be allowed to provide pilotage services and supply desalinated water to ships berthed at Singapore ports or in Singapore territorial waters.

Sector: Transport Services

Sub-Sector: Maritime transport services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Maritime and Port Authority of Singapore Act, Cap. 170A, 1997 Rev Ed, Section 81

Description: Investment and Cross-Border Trade in Services

Only local service suppliers shall be allowed to operate and manage cruise and ferry terminals.

Local service suppliers are either Singapore citizens or legal persons which are more than 50 per cent owned by Singapore citizens.

Sector: Transportation and Distribution of Manufactured Gas and Natural Gas

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Level of Government: Central

Measures: Gas Act, Cap. 116A, 2002 Rev Ed

Description: Investment and Cross-Border Trade in Services

Only the holder of a gas transporter licence shall be allowed to transport and distribute manufactured and natural gas.

Only one gas transport licence has been issued given the size of the Singapore market.

Sector: Manufacturing and Services Incidental to Manufacturing

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Level of Government: Central

Measures: Control of Manufacture Act, Cap. 57, 2004 Rev Ed

Description: Investment and Cross-Border Trade in Services

The manufacture of the following products, and services incidental to the manufacture of these products, in Singapore, may be subject to certain restrictions:

(a) beer and stout;

(b) cigars;

(d) chewing gum, bubble gum, dental chewing gum or any like substance (not being a medicinal product within the meaning of the Medicines Act, Cap. 176, or a substance in respect of which an order under section 54 of the Act has been made);

(e) cigarettes; and

(f) matches.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Level of Government: Central

Measures: Banking Act, Cap. 19, MAS Notice 757 Monetary Authority of Singapore Act, Cap. 186, MAS Notice 1105

Finance Companies Act, Cap. 108, MAS Notice 816

Insurance Act, Cap. 142, MAS Notice 109

Securities and Futures Act, Cap. 289, MAS Notice SFA 04-N04

Description: Investment and Cross-Border Trade in Services

A non-resident financial institution may in certain circumstances be unable to borrow in Singapore dollars more than S$5 million from a resident financial institution owing to the following restrictions placed on financial institutions' lending of the Singapore dollar to non-resident financial institutions.

A financial institution shall not extend to any non-resident financial institution Singapore dollar credit facilities exceeding S$5 million per non-resident financial institution:

(a) where the Singapore dollar proceeds are to be used outside of Singapore, unless:

(i) such proceeds are swapped or converted into foreign currency upon draw-down or before remittance abroad; or

(ii) such proceeds are for the purpose of preventing settlement failures where the financial institution extends a temporary Singapore dollar overdraft to any vostro account of any non-resident financial institution, and the financial institution takes reasonable efforts to ensure that the overdraft is covered within two business days; and

(b) where there is reason to believe that the Singapore dollar proceeds may be used for Singapore dollar currency speculation, regardless of whether the Singapore dollar proceeds are to be used in Singapore or outside of Singapore.

A financial institution shall not arrange Singapore dollar equity or bond issues for any non-resident financial institution where the Singapore dollar proceeds are to be used outside Singapore, unless the proceeds are swapped or converted into foreign currency upon draw-down or before remittance abroad.

"Non-residents financial institution" means any financial institution which is not a resident as defined in the relevant notice.

Sector: Business Services

Sub-Sector: Credit bureau services

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Administrative measure pursuant to the Monetary Authority of Singapore Act, Cap. 186

Description: Cross-Border Trade in Services

Singapore reserves the right to limit the number of suppliers of credit bureau services where information provided by the supplier of credit bureau services is obtained from financial institutions in Singapore. The supplier must be established in Singapore.

ANNEX I

SCHEDULE OF THE UNITED STATES

INTRODUCTORY NOTES

1. Description provides a general non-binding description of the measure for which the entry is made.

2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation, or other measure identified in the Measures element of that entry.

Sector: Atomic Energy

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Atomic Energy Act of 1954, 42 U.S.C. 2011 et seq.

Description: Investment

A licence issued by the United States Nuclear Regulatory Commission is required for any person in the United States to transfer or receive in interstate commerce, manufacture, produce, transfer, use, import or export any nuclear "utilization or production facilities" for commercial or industrial purposes.

Such a licence may not be issued to any entity known or believed to be owned, controlled or dominated by an alien, a foreign corporation or a foreign government (42 U.S.C. 2133(d)). A licence issued by the United States Nuclear Regulatory Commission is also required for nuclear "utilization and production facilities," for use in medical therapy, or for research and development activities. The issuance of such a licence to any entity known or believed to be owned, controlled or dominated by an alien, a foreign corporation or a foreign government is also prohibited (42 U.S.C. 2134(d)).

Sector: Business Services

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Export Trading Company Act of 1982, 15 U.S.C. 4011-4021 15 C.F.R. Part 325

Description: Cross-Border Trade in Services

Title III of the Export Trading Company Act of 1982 authorises the Secretary of Commerce to issue "certificates of review" with respect to export conduct. The Act provides for the issuance of a certificate of review where the Secretary determines, and the Attorney General concurs, that the export conduct specified in an application will not have the anticompetitive effects proscribed by the Act. A certificate of review limits the liability under federal and state antitrust laws in engaging in the export conduct certified.

Only a "person" as defined by the Act can apply for a certificate of review. "Person" means "an individual who is a resident of the United States; a partnership that is created under and exists pursuant to the laws of any State or of the United States; a State or local government entity; a corporation, whether organized as a profit or nonprofit corporation, that is created under and exists pursuant to the laws of any State or of the United States; or any association or combination, by contract or other arrangement, between such persons."

A foreign national or enterprise may receive the protection provided by a certificate of review by becoming a "member" of a qualified applicant. The regulations define "member" to mean "an entity (U.S. or foreign) that is seeking protection under the certificate with the applicant. A member may be a partner in a partnership or a joint venture; a shareholder of a corporation; or a participant in an association, cooperative, or other form of profit or nonprofit organization or relationship, by contract or other arrangement."

Sector: Business Services

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: Export Administration Act of 1979, as amended, 50 U.S.C. App. 2401-2420

International Emergency Economic Powers Act, 50 U.S.C. 1701-1706

Export Administration Regulations, 15 C.F.R. Parts 730-774

Description: Cross-Border Trade in Services

Certain exports and re-exports of commodities, software and technology subject to the Export Administration Regulations require a licence from the Bureau of Industry and Security, U.S.

Department of Commerce (BIS). Certain activities of U.S. persons, wherever located, also require a licence from BIS. An application for a licence must be made by a person in the United States.

In addition, release of controlled technology to a foreign national in the United States is deemed to be an export to the home country of the foreign national and requires the same written authorisation from BIS as an export from the territory of the United States.

Sector: Mining

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Level of Government: Central

Measures: Mineral Lands Leasing Act of 1920, 30 U.S.C. Chapter 3A 10 U.S.C. 7435

Description: Investment

Under the Mineral Lands Leasing Act of 1920, aliens and foreign corporations may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from oil and gas, across on-shore federal lands or acquire leases or interests in certain minerals on on-shore federal lands, such as coal or oil. Non-U.S. citizens may own a 100 per cent interest in a domestic corporation that acquires a right-of-way for oil or gas pipelines across on-shore federal lands, or that acquires a lease to develop mineral resources on on-shore federal lands, unless the foreign investor's home country denies similar or like privileges for the mineral or access in question to U.S. citizens or corporations, as compared with the privileges it accords to its own citizens or corporations or to the citizens or corporations of other countries (30 U.S.C. 181, 185(a)).

Nationalisation is not considered to be denial of similar or like privileges.

Foreign citizens, or corporations controlled by them, are restricted from obtaining access to federal leases on Naval Petroleum Reserves if the laws, customs or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States (10 U.S.C. 7435).

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Level of Government: Central

Measures: 22 U.S.C. 2194 and 2198(c)

Description: Investment

Overseas Private Investment Corporation (OPIC) programmes are not available to non-U.S. citizens as individuals. The availability of these programmes to foreign enterprises and foreign owned or controlled domestic enterprises depends upon the extent of U.S. ownership or other U.S. participation, as well as the form of business organisation.

OPIC insurance and loan guaranties are available only to eligible investors, which are: (i) United States citizens;

(ii) corporations, partnerships or other associations, including nonprofit associations, created under the laws of the United States, any state or territory thereof, or the District of Columbia, and substantially beneficially owned by United States citizens; and

(iii) foreign partnerships or associations 100 per cent owned, or foreign corporations at least 95 per cent owned, by one or more such United States citizens, corporations, partnerships or associations.

OPIC may issue insurance to investors not otherwise eligible in connection with arrangements with foreign governments (including agencies, instrumentalities or political subdivisions

thereof) or with multilateral organisations and institutions, such as the Multilateral Investment Guarantee Agency, for sharing liabilities assumed under such investment insurance, except that the maximum share of liabilities so assumed may not exceed the proportionate participation by eligible investors in the project.

Sector: Air Transportation

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: 49 U.S.C. Subtitle VII, Aviation Programs 14 C.F.R. Part 297 (foreign freight forwarders); 14 C.F.R. Part 380, Subpart E (registration of foreign (passenger) charter operators)

Description: Investment

Only air carriers that are citizens of the United States may operate aircraft in domestic air service (cabotage) and may supply international scheduled and non-scheduled air service as U.S. air carriers.

U.S. citizens also have blanket authority to engage in indirect air transportation activities (air freight forwarding and passenger charter activities other than as actual operators of the aircraft). In order to conduct such activities, non-U.S. citizens must obtain authority from the Department of Transportation.

Applications for such authority may be rejected for reasons relating to the failure of effective reciprocity, or if the

Department of Transportation finds that it is in the public interest to do so.

Under 49 U.S.C. 40102(a)(15), a "citizen of the United States" means an individual who is a U.S. citizen; a partnership in which each member is a U.S. citizen; or a U.S. corporation of which the president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, which is under the actual control of U.S. citizens, and in which at least 75 per cent of the voting interest in the corporation is owned or controlled by U.S. citizens.

Sector: Air Transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: 49 U.S.C., Subtitle VII, Aviation Programs 49 U.S.C. 41703 14 C.F.R. Part 375

Description: Cross-Border Trade in Services

Authorisation from the Department of Transportation is required for the supply of specialty air services in the territory of the United States. A person of a Party will be able to obtain such an authorisation if the Party provides effective reciprocity by virtue of this Agreement.

Investment

Foreign civil aircraft require authority from the Department of Transportation to conduct specialty air services in the territory of the United States. In determining whether to grant a particular application, the Department will consider, among other factors, the extent to which the country of the applicant's nationality accords U.S. civil aircraft operators effective reciprocity. "Foreign civil aircraft" are aircraft of foreign registry or aircraft of U.S. registry that are owned, controlled or operated by persons who are not citizens or permanent residents of the United States (14 C.F.R. 375.1). Under 49 U.S.C. 40102(a)(15), a "citizen of the United States" means an individual who is a U.S. citizen; a partnership in which each member is a U.S. citizen; or a U.S. corporation of which the president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, which is under the actual control of U.S. citizens, and in which at least 75 per cent of the voting interest in the corporation is owned or controlled by U.S. citizens.

Sector: Land Transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: 49 U.S.C. 13902(c)

49 U.S.C. 13102

49 U.S.C. 13501

49 CFR Parts 365, 368, 385, 387, 393, 396

Sec. 350, PL 107-87, as amended

Sec. 6901, PL 110-28, as amended

Description: Cross-Border Trade in Services

Only persons of the United States, using U.S.-registered and either U.S.-built or duty-paid trucks or buses, may supply truck or bus services between points in the territory of the United States.

Operating authority from the Department of Transportation is required to supply interstate or cross-border for hire bus or truck services in the territory of the United States. For persons of Mexico, grants of operating authority are subject to certain statutory and regulatory requirements.

Investment

Grants of authority for the supply of truck services by persons of Mexico between points in the United States for the transportation of goods other than international cargo is subject to reciprocity.

Sector: Transportation Services – Customs Brokers

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Level of Government: Central

Measures: 19 U.S.C. 1641(b)

Description: Investment and Cross-Border Trade in Services

A customs broker's licence is required to conduct customs business on behalf of another person. An individual may obtain such a licence only if that individual is a U.S. citizen. A corporation, association or partnership may receive a customs broker's licence only if it is established under the laws of any state and at least one officer of the corporation or association, or one member of the partnership, holds a valid customs broker's licence.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Level of Government: Central

Measures: Securities Act of 1933, 15 U.S.C. 77c(b), 77f, 77g, 77h, 77j, and 77s(a)

17 C.F.R. 230.251 and 230.405

Securities Exchange Act of 1934, 15 U.S.C. 78l, 78m, 78o(d), and 78w(a) 17 C.F.R. 240.12b-2

Description: Investment

Foreign firms, except for certain Canadian issuers, may not use the small business registration forms under the Securities Act of 1933 to register public offerings of securities or the small business registration forms under the Securities Exchange Act of 1934 to register a class of securities or file annual reports.

Sector: Communications – Radiocommunications2

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: 47 U.S.C. 310 (a)-(b)

Foreign Participation Order 12 FCC Rcd 23891, paras. 97-118 (1997)

Description: Investment

The United States restricts ownership of radio licences in accordance with the above statutory and regulatory provisions, which provide that, inter alia:

(a) no station licence may be granted to or held by a foreign government or representative thereof;

(b) no broadcast or common carrier or aeronautical en route or aeronautical fixed station licence may be granted to or held by:

(i) an alien or its representative;

(ii) a corporation organised under the laws of a foreign government; or

(iii) a corporation of which more than one fifth of the capital stock is owned of record or voted by an alien or its representative, a foreign government or its representative, or a corporation organised under the laws of a foreign country; and

(c) absent a specific finding that that the public interest would be served by permitting foreign ownership of a broadcast licence, no broadcast station licence shall be granted to any corporation directly or indirectly controlled by another corporation of which more than one-fourth of the capital stock is owned of record or voted by an alien or its representative, a foreign government or its representative, or a corporation organised under the laws of a foreign country.

Sector: Professional Services – Patent Attorneys, Patent Agents, and Other Practice before the Patent and Trademark Office

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Level of Government: Central

Measures: 35 U.S.C. Chapter 3 (practice before the U.S. Patent and Trademark Office)

37 C.F.R. Part 11 (representation of others before the U.S. Patent and Trademark Office)

Description: Cross-Border Trade in Services

As a condition to be registered to practice for others before the U.S. Patent and Trademark Office (USPTO):

(a) a patent attorney must be a U.S. citizen or an alien lawfully residing in the United States (37 C.F.R. 11.6(a));

(b) a patent agent must be a U.S. citizen, an alien lawfully residing in the United States, or a nonresident who is registered to practice in a country that permits patent agents registered to practice before the USPTO to practice in that country; the latter is permitted to practice for the limited purpose of presenting and prosecuting patent applications of applicants located in the country in which he or she resides (37 C.F.R. 11.6(c)); and

(c) a practitioner in trademark and non-patent cases must be an attorney licensed in the United States, a "grandfathered" agent, an attorney licensed to practice in a country that accords equivalent treatment to attorneys licensed in the United States, or an agent registered to practice in such a country; the latter two are permitted to practice for the limited purpose of representing parties located in the country in which he or she resides (37 C.F.R. 11.14(a)-(c)).

ANNEX I – UNITED STATES – 15

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Regional

Measures: All existing non-conforming measures of all states of the United States, the District of Columbia, and Puerto Rico

Description: Investment and Cross-Border Trade in Services

For purposes of transparency, Appendix I-A sets out an illustrative, non-binding list of non-conforming measures maintained at the regional level of government.

Appendix I-A: Illustrative list of U.S. regional non-conforming measures

ANNEX I

SCHEDULE OF VIET NAM

INTRODUCTORY NOTES

1. Description sets out the non-conforming measure for which the entry is made.

2. In accordance with Article 9.12 (Non-Conforming Measures) and Article 10.7 (Non Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming measures identified in the Description element of that entry.

3. Classification numbers, where referenced in the Sub-Sector element, refers to the activity covered by the non-conforming measure according to the provisional CPC codes as used in the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991).

Sector: Professional Services

Sub-Sector: Legal Services (CPC 861)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Level of Government: Central

Measures: Law No 20/2012/QH13 amending the Law on Lawyers No. 65/2006/QH11 dated 29 June 2006

Description: Investment and Cross-Border Trade in Services

Foreign lawyers organisations1and foreign lawyers may provide legal services in Viet Nam, through the following forms:

(a) branches of foreign lawyers organisations;

(b) wholly foreign limited liability law firm;

(d) partnerships between foreign lawyer organisations and Viet Nam's law partnerships.

These entities are not allowed to:

(i) participate in legal proceedings in the capacity of defenders or representatives of their clients before the courts of Viet Nam; and

(ii) participate in legal documentation and certification services2of the laws of Viet Nam.

Foreign lawyers practising law in Viet Nam are not permitted to advise on Vietnamese law unless they have graduated from a Vietnamese law college and satisfy requirements applied to like Vietnamese lawyers. They are not allowed to defend or represent clients before the courts of Viet Nam.

Sector: Professional Services

Sub-Sector: Auditing services (CPC 862)

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Decree No. 17/2012/ND-CP dated 13 March 2012

Description: Cross-Border Trade in Services

Foreign services suppliers are not permitted to supply auditing services unless they meet the requirements of local presence in Viet Nam.

Sector: Professional Services

Sub-Sector: Veterinary services (CPC 932)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to supply veterinary services may not be permitted in Viet Nam unless such services are supplied by natural persons in the form of private professional practice.

Sector: Distribution services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 23/2007/ND-CP dated 12 February 2007 Circular No. 09/2007/TT-BTM dated 17 July 2007

Circular No. 05/2008/TT-BCT dated 14 April 2008

Decision No. 10/2007/QD-BTM dated 21 May 2007

Description: Investment

The establishment of outlets for retail services (beyond the first one) shall be allowed on the basis of an Economic Needs Test (ENT).

Applications to establish more than one outlet shall be subject to pre-established publicly available procedures, and approval shall be based on objective criteria. The main criteria of the ENT include the number of existing service suppliers in a particular geographic area, the stability of market and geographic scale.

The establishment of outlets for retail services with area of less than 500 square metres in areas that are planned for commercial activities by the People's Committee of cities and provinces, and on which the construction of infrastructure has been finished, is not subject to the ENT requirement.

Five years after the date of entry into force of this Agreement for Viet Nam, the ENT shall be removed and this entry shall no longer have effect.

Sector: Other Business Services

Sub-Sector: Technical testing and analysis services (CPC 8676)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 140/2007/ND-CP dated 5 September 2007

Description: Investment

Where Viet Nam allows private suppliers of technical testing and analysis services access to a sector previously closed to private sector competition on the grounds that these services had been supplied in the exercise of governmental authority, such services shall be allowed without limitation on foreign ownership five years after such access to private sector competition is allowed.

Sector: Other Business Services

Sub-Sector: Services incidental to agriculture, hunting and forestry (CPC 881)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to supply services incidental to agriculture, hunting and forestry may not be supplied except through a business cooperation contract, a joint venture or the purchase of shares in a Vietnamese enterprise. In the case of a joint venture or the purchase of shares in an enterprise, foreign equity shall not exceed 51 per cent.

Sector: Telecommunications Services

Sub-Sector: Basic services

Value-added services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Level of Government: Central

Measures: Administrative measures

Description: Cross-Border Trade in Services

Satellite-based services: Foreign service suppliers are not allowed to supply satellite-based services unless the services are offered through commercial arrangements with Vietnamese international satellite service suppliers duly licensed in Viet Nam, except satellite-based services offered to off-shore/on sea based business customers, government institutions, facilities-based service suppliers, radio and television broadcasters, official international organisations' representative offices, diplomatic representatives and consulates, high tech and software development parks and multinational companies that are licensed to use satellite-earth stations.

Investment

(a) Non facilities-based services:4

Basic and valued added services: foreign investment to supply non facilities-based services may not be permitted except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 65 per cent, or 70 per cent in the case of virtual private networks. No later than five years after the date of entry into force of this Agreement, Viet Nam shall eliminate any foreign equity limitation or joint venture requirement.

(b) Facilities-based services:

(i) Basic services: foreign investment to provide facilities-based services may not be permitted except through a joint venture or the purchase of shares in a Vietnamese enterprise duly licensed in Viet Nam, with foreign equity not exceeding 49 per cent.

(ii) Valued added services: foreign investment to provide facilities-based services may not be permitted except through a joint venture or the purchase of shares in a Vietnamese enterprise duly licensed in Viet Nam, with foreign equity not exceeding 51 per cent. No later than five years after the date of entry into force of this Agreement, Viet Nam shall permit foreign equity up to 65 per cent.

Foreign service suppliers shall be permitted up to 100 per cent ownership of submarine cable transmission capacity landing at a licensed submarine cable landing station in Viet Nam, and may sell such capacity to any licensed telecommunications operator in Viet Nam, including Internet Service Providers, in Viet Nam.

Sector: Audio-visual Services

Sub-Sector: Motion picture production (CPC 96112)

Motion picture distribution (CPC 96113)

Motion picture projection service (CPC 96121)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to provide motion picture production, distribution and projection services may not be permitted except through a business cooperation contract or a joint venture with a Vietnamese partner legally authorised to provide such services, or the purchase of shares in a Vietnamese enterprise legally authorised to provide such services. In the case of a joint venture or the purchase of shares in an enterprise, foreign equity shall not exceed 51 per cent.

For motion picture projection service, foreign organisations and individuals are not permitted to engage in business cooperation contract or joint-venture with Viet Nam's houses of culture, public cinema clubs and societies, mobile projection teams, or owners or operators of temporary film-projection locations.

Sector: Audio-visual Services

Sub-Sector:

Obligations Concerned: Performance Requirement (Article 9.10) Level of Government: Central

Measures: The Law on Cinemamatography 2006, Law No. 62/2006/QH11 The Law Amending and Supplementing A Number of Articles on the Law of Cinematography 2009, Law No. 31/2009/QH12 Decree No 54/2010/NĐ-CP dated 21 May 2010

Description: Investment

Cinemas must screen Vietnamese films on the occasion of major anniversaries of the country.

The ratio of screening Vietnamese films to total films shall not be less than 20 per cent on an annual basis. Cinemas should show at least one Vietnamese film between the hours of 18:00 and 22:00.

Sector: Educational Services

Sub-Sector: Higher education services (CPC 923)

Adult education (CPC 924)

Other education services (CPC 929 including foreign language training)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to supply educational services in the following fields of study is not permitted: national security, defence, political science, religion, Vietnamese culture and other fields of study necessary to protect Vietnamese public morals.

This limitation shall not prevent the supply of educational services in fields of study where Viet Nam is bound under any other trade agreement.

Sector: Tourism and travel related services

Sub-Sector: Travel agencies and tour operator services (CPC 7471)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Only foreign investment to supply inbound services and domestic travel for inbound tourists as an integral part of inbound services is permitted.

Sector: Recreational, Cultural and Sporting Services

Sub-Sector: Entertainment services (including theatre, live bands and circus services) (CPC 9619)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to provide entertainment services covered by CPC 9619 (including theatre, live bands and circus services) may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise with foreign equity not exceeding 49 per cent. Three years after the date of entry into force of this Agreement, a joint venture or purchase of shares in a Vietnamese enterprise with foreign equity not exceeding 51 per cent shall be permitted.

Sector: Recreational, Cultural and Sporting Services

Sub-Sector: Electronic games business

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Level of Government: Central

Measures: Administrative measures

Description: Investment and Cross-Border Trade in Services

Foreign investment to supply electronic games services may not be supplied except through a business cooperation contract or a joint venture with Vietnamese partner authorised to supply such services or the purchase of shares in a Vietnamese enterprise authorised to supply such services. In case of a joint venture or the purchase of shares in an enterprise, foreign equity shall not exceed 49 per cent.

No later than two years after the date of entry into force of this Agreement, Viet Nam shall permit 51 per cent foreign investment in electronic game services offered over the Internet.

Five years after the date of entry into force of this Agreement, Viet Nam shall impose no limitations on foreign equity.

For greater certainty, the absence of an entry against the cross border services obligations does not preclude Viet Nam from ensuring that the cross-border supply of electronic games services complies with Viet Nam's laws and regulations, including applicable registration and licensing requirements.

Sector: Maritime Transport Services

Sub-Sector: Passenger transportation (CPC 7211)

Freight transportation (CPC 7212)

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to supply maritime passenger and freight transportation services under the national flag of Viet Nam may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent. In addition, foreign seafarers may not exceed one-third of total employees of the ships. The Master or first chief executive must be a Vietnamese citizen.

Sector: Services auxiliary to all modes of transport

Sub-Sector: Container handling services, except services provided at airports (CPC 7411)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 140/2007/ND-CP dated 5 September 2007 Administrative measures

Description: Investment

Foreign investment to supply container handling services may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 50 per cent.

Sector: Maritime Auxiliary Services

Sub-Sector: Shipping agency services

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 115/ND-CP dated 5 July 2007 Admistrative measures

Description: Investment

Foreign investment to supply shipping agency services may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent.

Sector: Internal Waterways Transport

Sub-Sector: Passenger transport (CPC 7221)

Freight transport (CPC 7222)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 140/2007/ND-CP dated 5 September 2007 Administrative measures

Description: Investment

Foreign investment to supply internal waterway transport services may not be supplied except through a joint venture with a Vietnamese partner or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent.

Sector: Rail Transport Services

Sub-Sector: Passenger transportation (CPC 7111)

Freight transportation (CPC 7112)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 140/2007/ND-CP dated 5 September 2007 Administrative measures

Description: Investment

Foreign investment to supply rail freight transport services may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent.

Foreign investment to supply passenger rail transport services is not permitted.

Sector: Road Transport Services

Sub-Sector: Passenger transportation (CPC 7121 and 7122)

Freight transportation (CPC 7123)

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 140/2007/ND-CP dated 5 September 2007 Administrative measures

Description: Investment

Foreign investment to supply road passenger and freight transport services may not be supplied except through a business cooperation contract, a joint-venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent.

In the case of road freight transport services, subject to the needs of the market, the foreign equity limitation may be raised to but shall not exceed 51 per cent. 100 per cent of joint venture drivers shall be Vietnamese citizens.

Sector: Manufacturing

Sub-Sector: Aircraft manufacture industry

Manufacture of railway rolling stock, spare parts, wagon and coach

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment in the manufacture of aircraft, railway rolling stock, spare parts, wagon and coach may not be permitted except through a joint venture or the purchase of shares in Vietnamese enterprise, with foreign equity not exceeding 49 per cent.

Sector: All

Sub-sector:

Obligations concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Law No. 45/2013/QH13 on Land dated 29 November 2013 and the relevant regulations

Description: Investment

Foreign organisations, individuals and foreign invested enterprises may only acquire and use land-use rights in Viet Nam in accordance with the Law on Land.

Sector: Power Development

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment to own or operate power transmission facilities in Viet Nam may not be permitted.

Viet Nam Electricity Corporation (EVN) is currently the sole authorised owner and operator of power transmission facilities in Viet Nam.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4) Level of Government: Central

Measures: Description:

Administrative measures

Investment

Foreign investment to establish a commercial presence in the form of a branch may not be permitted, except for the following sectors and sub-sectors:

(a) Legal services (CPC 861);

(b) Computer and Related Services (CPC 841-845, CPC 849);

(d) Services related to management consulting (CPC 866);

(e) Construction and related engineering services (CPC 51); and

(f) Franchising services (CPC 8929).

For greater certainty, and consistent with Article 9.12.1(c) (Non-Conforming Measures), the removal of a branching restriction in a sector or sub-sector does not require the removal of a branching restriction in all sectors.

Sector: Import/Export Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4) Level of Government: Central

Measures: Description:

Admininistrative measures

Investment

Foreign investment in state-trading enterprises of Viet Nam that import certain tobacco products, oil products, publications, recorded media, aircraft and aircraft parts, as specified in Table 8(c) of the Report of the Working Party on the Accession of Viet Nam in the WTO may not be permitted.

For greater certainty, and consistent with Article 9.12.1(c) (Non-Conforming Measures), the liberalisation of a state trading enterprise does not require the liberalisation of all state trading enterprises.

Sector: Geodesy and Cartography

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4) Level of Government: Central

Measures: Description:

Decree No. 12/2002/ND-CP dated January 22, 2002

Investment

Foreign organisations and individuals carrying out, directly or in cooperation with domestic organisations, geodesic and cartographic activities in Viet Nam must have their geodesic and cartographic projects approved by competent State bodies and be granted permits for geodesic and cartographic activities.

After completing the geodesic and cartographic projects, the project investors must submit one copy of the results to the State management agency in charge of geodesy and cartography.

Sector: Recreational, cultural and sporting services

Sub-Sector: Amusement parks

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Administrative measure

Description: Investment

Foreign investment of less than USD 1 billion in building and managing theme parks or amusement parks shall not be accepted unless the Vietnamese competent authorities advise the applicant that the investment is likely to be of net benefit to Viet Nam.

This determination is made in accordance with the following factors:

(a) the compatibility of the investment with the regional master plan for socio-economic development;

(b) the ability to meet people's demand for cultural consumption;

(d) the effect of the investment on local state budget, employment, on the use of parts, components and services produced in Viet Nam and on competition with the services provided by the local cultural houses.

Investments greater than USD 1 billion are not subject to this determination.

Sector: Financial services provided by non-financial institutions, excluding the provision and transfer of financial information and advisory financial services

Sub-Sector:

Obligations concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: All existing non-conforming measures

Description: Investment

All existing non-conforming measures at the central level of government.

Sector: Manufacture of tobacco products, including cigars and cigarettes

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 67/2013/ND-CP dated June 26, 2013

Description: Investment

Foreign investment in manufacturing of tobacco products, including cigars and cigarettes, is not allowed, except through a joint venture or the purchase of shares in a Vietnamese enterprise with foreign equity not exceeding 49 per cent.

Sector: Services incidental to energy distribution (CPC 887)

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Level of Government: Central

Measures: Administrative measures

Description: Investment and Cross-Border Trade in Services

Foreign services suppliers are not allowed to supply services incidental to energy distribution. Foreign investment in these services is not permitted.

Sector: Mining

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Administrative measures

Description: Investment

Foreign investment in exploitation of minerals shall not be accepted unless the Vietnamese competent authorities advise the applicant that the investment is likely to be of net benefit to Viet Nam. In making this determination, the competent authority may consider the following factors:

(a) the effect of the investment on the level and nature of economic activity in Viet Nam, including the effect on employment, on the use of parts, components and services produced in Viet Nam and on exports from Viet Nam;

(b) the degree and significance of participation by Vietnamese in the investment;

(c) the effect of the investment on productivity, industrial efficiency, technological development and product innovation in Viet Nam;

(d) the effect of the investment on competition within an industry or industries in Viet Nam;

(e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and

(f) the contribution of the investment to Viet Nam's ability to compete in world markets.

Sector: Oil and Gas

Sub-Sector: Oil and gas exploration, prospecting and exploitation

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Level of Government: Central

Measures: The Petroleum Law 1993

The 2000 Law No.19/2000/QH10 Amending and

Supplementing a Number of Articles of the Petroleum Law 1993

The 2008 Law No.10/2008/QH12 Amending and Supplementing a Number of Articles of the Petroleum Law 1993, which was amended and supplemented under Law 19/2000/QH10 Amending and Supplementing a Number of Articles of the Petroleum Law

Description: Investment

Viet Nam Oil and Gas Group (PETROVIETNAM) is the sole authorised company with respect to oil and gas exploration, prospecting and exploitation. A contract with PETROVIETNAM is required for oil and gas activities in Viet Nam. Sub-contracts may be awarded to foreign contractors, but priority may be given to Vietnamese organisations and individuals.

The execution of oil and gas contracts and their transfer to another entity must be approved by the Prime Minister.

In special cases7, the following matters are also subject to the Prime Minister's approval: (i) the extension of the prospecting period or the term of an oil and gas contract; and (ii) the suspension time limit, not to exceed three years, in cases where the parties to an oil and gas contract negotiate to suspend the execution of a number of rights and obligations under an oil and gas contract when circumstances do not allow for prompt execution of the contract.

PETROVIETNAM has the preemptive right to buy part or all of an oil and gas contract to be transferred.

Foreign investors may only supply flight operation services for oil and gas activities through joint venture contracts with Vietnamese companies.

Sector: Business Services

Sub-Sector: Asset appraisal

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 89/2013/NĐ-CP dated August 6, 2013 promulgating the implementation of some articles of the Law on Price on price appraisal

Description: Investment

Foreign organisations may not supply asset appraisal services except:

(a) when they are organisations legally established and supplying asset appraisal services in their home country; and

(b) in partnership with a Vietnamese asset appraisal enterprise through a limited liability company with two or more members, or a joint stock company.

Foreign individuals are not permitted to supply asset appraisal services.

Sector: Real Estate

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Law No. 66/2014/QH13 dated November 25, 2014 on Real Estate Business

Description: Investment

With respect to the construction, lease, purchase, lease-purchase and transfer of real estate properties, the Law on Real Estate Business provides more limited rights to foreign entities than Vietnamese entities. Foreign invested enterprises may only:

(a) with respect to residential real estate:

(i) construct residential real estate for sale, lease or lease-purchase on land allocated by the State;

(ii) construct residential real estate for lease on land leased by the State;

(iii) purchase, lease-purchase or rent commercial residential real estate in housing development investment projects;

(iv) rent residential real-estate for sub-lease; and

(v) obtain the transfer of residential real estate projects, partly or as a whole, to construct residential buildings for sale or for lease;

(b) with respect to commercial real estate:

(i) construct commercial buildings for sale, lease or lease-purchase on land leased by

the State;

(ii) construct commercial buildings on land which is leased out in industrial parks, industrial complexes, export-processing zones, hi-tech zones or economic zones for trading for their proper land use;

(iii) purchase or lease-purchase commercial real estate for use according to their proper utility;

(iv) rent commercial real estate for use or sublease; and

(v) obtain the transfer of commercial real estate projects, partly or as a whole, to construct commercial buildings for sale or for lease.

For greater certainty, foreign invested enterprises may also supply real estate brokerage services, real estate exchange floors, real estate consulting services and real estate management services, with respect to both residential and commercial real estate.

For greater certainty, foreign invested enterprises, foreign individuals and organisations are only allowed to carry out the activities enumerated above.

Sector: Security Systems Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No. 52/2008/ND-CP dated 22 April, 2008 on management of security service business

Description: Investment

Foreign investment is not permitted except through a joint venture with foreign equity not exceeding 49 per cent.

Foreign enterprises may not supply security system services unless they are enterprises with expertise in the security system service business, have capital amounts and total asset value of USD 500,000 or more, have operated for five consecutive years or more, and have not violated the laws of the home or relevant countries. Foreign individuals are not permitted to supply security system services.

Foreigners may not be employed as security personnel.

Sector: Air Transportation, including domestic and international air transportation services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Measures: Decree No. 30/2013/ND-CP dated 8 April 2013

Description: Investment

Aggregate foreign capital contribution or equity is restricted to no more than 30 per cent of chartered capital or shares of a Vietnamese airline. A Vietnamese individual or legal person who is not a foreign invested enterprise must hold the largest percentage of chartered capital or shares in the airline.

At least two-thirds of the total members of the executive board of a foreign invested airline established in Viet Nam must be Vietnamese. The Director General (or Director) and the legal representative of a foreign invested airline established in Viet Nam must be Vietnamese.

Sector: Education Services

Sub-Sector: Primary education services

Secondary education services

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Decree No.73/2012/ND-CP dated 26 September 2012

Description: Investment

Foreign investment in the above-mentioned services is not permitted except through:

(a) preschool education institutions using foreign educational programmes for foreign children; and

(b) compulsory education institutions using foreign educational programmes, issuing foreign

qualifications, for foreign students and some Vietnamese students.

The compulsory education institutions may enrol Vietnamese students, but the number of Vietnamese students in primary schools and middle schools shall not exceed 10 per cent of the total number of students, and that in high schools shall not exceed 20 per cent of the total number of students.

Annex II-Cross-Border Trade in Services and Investment Non-Conforming Measures

ANNEX II

EXPLANATORY NOTES

1. The Schedule of a Party to this Annex sets out, pursuant to Article 9.12 (Non Conforming Measures) and Article 10.7 (Non-Conforming Measures), the specific sectors, subsectors or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(a) Article 9.4 (National Treatment) or Article 10.3 (National Treatment);

(b) Article 9.5 (Most-Favoured-Nation Treatment) or Article 10.4 (Most Favoured-Nation Treatment);

(d) Article 9.11 (Senior Management and Boards of Directors);

(e) Article 10.5 (Market Access); or

(f) Article 10.6 (Local Presence).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Sub-Sector, where referenced, refers to the specific subsector for which the entry is made;

(d) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 9.12.2 (Non-Conforming Measures) and Article 10.7.2 (Non-Conforming Measures), do not apply to the sectors, subsectors or activities listed in the entry;

(e) Description sets out the scope or nature of the sectors, subsectors or activities covered by the entry to which the reservation applies; and

(f) Existing Measures, where specified, identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors or activities covered by the entry.

3. In accordance with Article 9.12.2 (Non-Conforming Measures) and Article 10.7.2 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors and activities identified in the Description element of that entry.

4. With respect to Annex II entries on Most-Favoured-Nation Treatment relating to bilateral or multilateral international agreements, the absence of language regarding the scope of the reservation for differential treatment resulting from an amendment of those bilateral or multilateral international agreements in force or signed prior to the date of entry into force of this Agreement is without prejudice to each Party's respective interpretation of the scope of that reservation.

ANNEX II

SCHEDULE OF AUSTRALIA

INTRODUCTORY NOTES

1. For the avoidance of doubt, in relation to education services, nothing in Chapter 9 (Investment) or Chapter 10 (Cross-Border Trade in Services) shall interfere with:

(a) the ability of individual education and training institutions to maintain autonomy in admissions policies (including in relation to considerations of equal opportunity for students and recognition of credits and degrees), in setting tuition rates and in the development of curricula or course content;

(b) non-discriminatory accreditation and quality assurance procedures for education and training institutions and their programmes, including the standards that must be met;

(c) government funding, subsidies or grants, such as land grants, preferential tax treatment and other public benefits, provided to education and training institutions; or

(d) the need for education and training institutions to comply with non discriminatory requirements related to the establishment and operation of a facility in a particular jurisdiction.

2. For greater certainty, where Australia has more than one entry in its Schedule to Annex II that could apply to a measure, each entry is to be read independently, and is without prejudice to the application of any other entry to the measure.

Sector: All

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure

with respect to the supply of a service by the presence of natural

persons, subject to the provisions of Chapter 12 (Temporary

Entry for Business Persons), that is not inconsistent with

Australia's obligations under Article XVI of GATS.

ANNEX II – AUSTRALIA – 2

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure

according preferences to any Indigenous person or organisation

or providing for the favourable treatment of any Indigenous

person or organisation in relation to acquisition, establishment or

operation of any commercial or industrial undertaking in the

service sector.

Australia reserves the right to adopt or maintain any measure

with respect to investment that accords preferences to any

Indigenous person or organisation or providing for the favourable

treatment of any Indigenous person or organisation.

For the purpose of this entry, an Indigenous person means a

person of the Aboriginal and Torres Strait Islander peoples.

Existing Measures: Legislation and ministerial statements at all levels of government including Australia's foreign investment policy, and the Native

Title Act (Cth).

ANNEX II – AUSTRALIA – 3

Sector: All

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure at the

regional level of government that is not inconsistent with Australia's

obligations under Article XVI of GATS.

For the purposes of this entry, Australia's Schedule of Specific

Commitments is modified as set out in Appendix A.

For the purposes of this entry, the reference to Australia's

commitments under Article XVI of GATS includes commitments

made under that Article after the date of entry into force of this

Agreement.

ANNEX II – AUSTRALIA – 4

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Description: Investment

Australia reserves the right to adopt or maintain any

measure with respect to proposals by foreign persons1and

foreign government investors to invest in Australian urban

land2(including interests that arise via leases, financing and

profit sharing arrangements, and the acquisition of interests

in urban land corporations and trusts), other than developed

non-residential commercial real estate.

Existing Measures: Australia's foreign investment policy, which consists of the Foreign Acquisitions and Takeovers Act 1975 (FATA)

(Cth), Financial Sector (Shareholdings) Act 1998 (Cth),

Foreign Acquisitions and Takeovers Regulations 1989

(Cth), and Ministerial Statements.

1 The term "foreign person" has the meaning set out in the Foreign Acquisitions and Takeovers Act 1975 (Cth).

2 The term "Australian urban land" has the meaning set out in the Foreign Acquisitions and Takeovers Act 1975 (Cth).

ANNEX II – AUSTRALIA – 5

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Australia reserves the right to adopt or maintain any

measure to allow the screening of proposals, by foreign

persons3, to invest 15 million4 Australian dollars or more in

Australian agricultural land and 53 million5 Australian

dollars or more in Australian agribusinesses.

Existing Measures: Australia's foreign investment policy, which consists of the Foreign Acquisitions and Takeovers Act 1975 (FATA)

(Cth), Financial Sector (Shareholdings) Act 1998 (Cth),

Foreign Acquisitions and Takeovers Regulations 1989

(Cth), and Ministerial Statements.

3 The term "foreign person" has the meaning set out in the Foreign Acquisitions and Takeovers Act 1975 (Cth).

4 For greater certainty, this refers to the total, cumulative value of agricultural land in Australia in which a foreign person has invested or intends to invest.

5 For greater certainty, this refers to the total, cumulative value of agribusinesses in Australia in which a foreign person has invested or intends to invest.

ANNEX II – AUSTRALIA – 6

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

At the central level of government, Australia reserves the right to limit the initial transfer or disposal of government owned entities or assets, or a portion or percentage of the initial transfer, to Australian persons. For greater certainty, if Australia transfers or disposes of a government owned entity or asset in multiple phases, this right shall apply separately to each phase.

At the remaining levels of government, Australia reserves the right to adopt or maintain any measure with respect to:

(a) the devolution to the private sector of services provided in the exercise of governmental authority at the date of entry into force of this Agreement; and

(b) the privatisation of government owned entities or assets.

For the purposes of this entry, any measure adopted after the date of entry into force of this Agreement in relation to subparagraph (a) or (b) shall be deemed an existing non-conforming measure subject to paragraphs 1, 5, 6 and 7 of Article 9.12 (Non Conforming Measures) and paragraph 1 of Article 10.7 (Non Conforming Measures).

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services7to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, child care, public utilities9, public transport and public housing.

Sector: Broadcasting and Audio-visual Services

Advertising Services

Live Performance

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)11

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Local Presence (Article 10.6)12

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to:

(a) Transmission quotas for local content on free-to air commercial television broadcasting services.

(b) Non-discriminatory expenditure requirements for Australian production on subscription television broadcasting services.

(d) Other audio-visual services transmitted electronically, in order to make Australian audio visual content reasonably available to Australian consumers.

(e) Spectrum management and licensing of broadcasting services.

(f) Subsidies or grants for investment in Australian cultural activity.

This entry does not apply to foreign investment restrictions in the broadcasting and audio-visual services sector.

Existing Measures: Broadcasting Services Act 1992 (Cth)

Radiocommunications Act 1992 (Cth)

Income Tax Assessment Act 1936 (Cth)

Income Tax Assessment Act 1997 (Cth)

Screen Australia Act 2008 (Cth)

Broadcasting Services (Australian Content) Standard 2005

Children's Television Standards 2009

Television Program Standard 23 – Australian Content in Advertising

Commercial Radio Codes of Practice and Guidelines

Community Broadcasting Codes of Practice

Sector: Broadcasting and Audio-visual Services

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain, under the International Co-production Program, preferential co-production arrangements for film and television productions. Official co production status, which may be granted to a co-production produced under these co-production arrangements, confers national treatment on works covered by these arrangements.

Existing Measures: International Co-production Program

Sector: Recreational, Cultural and Sporting Services (other than audio visual services)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to the creative arts, Indigenous traditional cultural expressions and other cultural heritage.

Sector: Distribution Services

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to wholesale and retail trade services of tobacco products, alcoholic beverages or firearms.

Sector: Education Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to primary education.

Sector: Gambling and Betting

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure with respect to gambling and betting.

Existing Measures: Legislation and ministerial statements including the Interactive Gambling Act 2001 (Cth).

Sector: Maritime Transport

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services and Investment

Australia reserves the right to adopt or maintain any measure with respect to maritime cabotage services and offshore transport services.

Existing Measures: Customs Act 1901 (Cth)

Fair Work Act 2009 (Cth)

Seafarers' Compensation and Rehabilitation Act 1992 (Cth)

Occupational Health and Safety (Maritime Industry) Act 1993 (Cth)

Income Tax Assessment Act 1936 (Cth)

Coastal Trading (Revitalising Australian Shipping) Act 2012 (Cth)

Coastal Trading (Revitalising Australian Shipping)

(Consequential Amendments and Transitional Provisions) Act 2012 (Cth)

Shipping Reform (Tax Incentives) Act 2012 (Cth)

Sector: Transport Services

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Australia reserves the right to adopt or maintain any measure with respect to investment in federal leased airports.

Existing Measures: Airports Act 1996 (Cth)

Airports (Ownership-Interests in Shares) Regulations 1996 (Cth)

Airports Regulations 1997 (Cth)

Sector: Services related to Air Transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure relating to the provision of ground handling services as defined in Article 10.1 (Definitions) in relation to each Party that:

(a) maintains, in its Schedule to Annex II, an entry with respect to ground handling services; and

(b) lists against Article 10.3 (National Treatment), but only in relation to the obligations listed by that Party.

Australia reserves the right to adopt or maintain any measure relating to the provision of airport operation services as defined in Article 10.1 (Definitions) in relation to each Party that:

(a) maintains, in its Schedule to Annex II, an entry with respect to airport operation services; and

(b) lists against two of the following obligations: Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment) and Article 10.6 (Local Presence), but only in relation to the obligations listed by that Party.

Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier or investor under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier or investor taken as part of a process of economic integration or trade liberalisation between the Parties to the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) done at Canberra on March 28, 1983.

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier or investor of a Pacific Island Forum member state under any international agreement in force or signed after the date of entry into force of this Agreement.

Australia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier or investor under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; or

Appendix A

For the following sectors, Australia's commitments under Article XVI of GATS as set out in Australia's Schedule of Specific Commitments under the GATS (GATS/SC/6, GATS/SC/6/Suppl.1, GATS/SC/6/Suppl.1/Rev.1, GATS/SC/6/Suppl.2, GATS/SC/6/Suppl.3 and GATS/SC/6/Suppl.4) are improved as described below.

ANNEX II

SCHEDULE OF BRUNEI DARUSSALAM

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

1. Brunei Darussalam reserves the right to adopt or maintain any measure relating to the privatisation, corporatisation, commercialisation or divestment of Government assets, entities or agencies including:

(a) limitations on ownership of assets;

(b) transfer or disposal of equity interests or their assets;

(d) nationality of the senior management or members of the board of directors.

2. This entry pertains only to the initial transfer or disposal of interest in Government assets, entities or agencies. Brunei Darussalam does not reserve this right with respect to subsequent transfers or disposals of Government interest in such assets, entities or agencies.

3. For greater certainty:

(a) where Brunei Darussalam transfers an interest in an existing state enterprise to another state enterprise, such transfer shall not be considered to be an initial transfer or disposal of the interest for purposes of this entry; and

(b) where Brunei Darussalam transfers or disposes of an interest in an existing state enterprise in multiple phases, subparagraph (a) shall apply separately to each such phase.

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)1

Description: Investment

Brunei Darussalam reserves the right to adopt or maintain any measure relating to all land transactions other than strata title, which shall be subject to approval and consent by His Majesty-in-Council, including but not limited to:

(a) ownership and lease of land;

(b) conditions on which such land shall be held; and

Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure that accords differential treatment:

(a) to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement;

(b) to ASEAN Member States under any ASEAN agreement open to participation by any ASEAN Member State, in force or signed after the date of entry into force of this Agreement; and

(c) to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving:

(i) air services; and

(ii) maritime and port matters.

Sector: All

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure with respect to the supply of a service by the presence of natural persons, including on the total number of foreign natural persons that may be employed in any sector, subject to the provisions of Chapter 12 (Temporary Entry for Business Persons), and in a manner that is not inconsistent with Brunei Darussalam's obligations under Article XVI of GATS.

Sector: Fisheries and Services Incidental to Fisheries

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to any fisheries and services related to fisheries activity in its territory, including its exclusive economic zone, including but not limited to:

(a) any differential treatment to foreign nationals due to the application of reciprocity of commitments relating to artisanal fishery activity; and

(b) ensuring the availability and sustainability of fisheries resources.

Sector: Logging

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Brunei Darussalam reserves the right to adopt or maintain any measure relating to logging activities.

Sector: Silica Sand

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Description: Investment

Brunei Darussalam reserves the right to adopt or maintain any measure with respect to the commercialisation of activities relating to silica sand deposits, including mining, quarrying, manufacture and export of such deposits.

Sector: Petroleum

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5)

Description: Investment

1. Brunei Darussalam has no existing statutes, regulations or other similar measures that mandate preferential treatment to be accorded to investors of another Party or their investments as compared to investors of any other Party, or of any non-Party, or their investments.

2. With respect to the making of or entry into petroleum mining agreements for the exploration, exploitation, development, and production rights of petroleum in the territory of Brunei Darussalam, and collateral agreements

Brunei Darussalam reserves the right to continue to exercise discretion4 to accord investors of another Party or their investments less favourable treatment than that it accords, in like circumstances, to investors of any other Party, or of any non-Party, or their investments, except that:

(a) Brunei Darussalam shall not adopt any statute, regulation or other similar measure that mandates according investors of another Party or their investments treatment less favourable than that it accords, in like circumstances, to investors of any other Party, or of any non-Party, or their investments; and

(b) Brunei Darussalam shall accord investors of another Party or their investments treatment no less favourable than that it accords, in like circumstances, to investors of any other Party, or of any non-Party, or their investments, under any bilateral or multilateral international agreement that enters into force or is signed after the date of entry into force of this Agreement.

3. The terms "petroleum mining agreement", "collateral agreement" and "petroleum" used herein shall have the meanings ascribed to them under the Act.

Existing Measures: Petroleum Mining Act (Chapter 44) (the Act) Brunei National Petroleum Company Sendirian Berhad Order, 2002

Petroleum (Pipe-Lines) Act (Chapter 45)

Administrative Measures and Guidelines

Sector: Coal

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)8

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

1. Subject to paragraph 2, Brunei Darussalam reserves the right to adopt or maintain any measure relating to the exploration, exploitation, development and production of coal reserves in Brunei Darussalam.

2. In the event that Brunei Darussalam determines that it is in its national interest to permit exploration, exploitation, development and production of coal reserves by foreign nationals and enterprises, this entry will not apply in relation to the Senior Management and Boards of Directors obligation. However, in respect of the remaining Obligations Concerned, Brunei Darussalam reserves the right to adopt and maintain any measure:

(a) relating to the making of or entry into of contracts for the exploration, exploitation, development and production rights of coal in the territory of Brunei Darussalam. In this such bid or tender or other process is conducted regard, Brunei Darussalam may:

(i) exercise discretion to accord investors of another Party, or their investments, less favourable treatment than that it accords, in like circumstances, to investors of any other Party, or of any non Party, or their investments, except that: Brunei Darussalam shall not adopt any statute or regulation that mandates according investors of another Party, or their investments, treatment less favourable than that it accords, in like circumstances, to investors of any other Party, or of any non-Party, or their investments, and; Brunei Darussalam shall accord investors of another Party, or their investments, treatment no less favourable than that it accords, in like circumstances, to investors of any other Party, or of any non-Party, or their investments, under any bilateral or multilateral international agreement that enters into force or is signed after the date of entry into force of this Agreement; and

(ii) require an investor of another Party, or its investment, engaged in the exploration, exploitation, development and production of coal reserves to form a joint venture or a similar arrangement with a Bruneian enterprise. However, such an investor of another Party, or its investment, shall, upon request, be permitted to hold the majority share in the joint venture or similar arrangement. Brunei Darussalam may require as a contractual term that, during the exploration or development period, all relevant costs with respect to the maximum participating interest of the Bruneian enterprise be borne by the partner that is an investor of another Party.

Consequently, on the expiration of the carry interest period, the Bruneian enterprise will bear the costs of future operations in proportion to its participating interests in the contract; and may require as a contractual term that a Bruneian enterprise may acquire a participating interest, or increase its participating interest, in the joint venture or similar arrangement upon the occurrence of a stipulated event; and

(b) requiring foreign enterprises acting as operators in the exploration, exploitation, development and production of coal to:

(i) provide a portion of coal or its derivatives in Brunei Darussalam for domestic use ("domestic supply obligations") as outlined in a contract, provided that such measure is not more restrictive than the requirements stipulated in Annex I – Brunei Darussalam – 35; and

(ii) unless as may otherwise be authorised by Brunei Darussalam, purchase the services listed in Appendix I – A to Annex I – Brunei Darussalam – 36 either from Brunei nationals or Bruneian enterprises, or foreign nationals or enterprises under a contract, provided that they engage Brunei nationals or Bruneian enterprises to provide other services.

3. Any non-conforming measure adopted or maintained after the signature of this Agreement in relation to paragraph 2(a)(ii) and paragraph 2(b) above shall be deemed to be an existing non-conforming measure and subject to paragraphs 1, 5, 6 and 7 of Article 9.12 (Non-Conforming Measures).

Sector: Private Health Services

Sub-Sector: Pharmacists, nurses, midwives and allied health services Private laboratory services Private radiology services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

1. Brunei Darussalam reserves the right to adopt or maintain any measure relating to the private practice of pharmacists, nurses, midwives and allied health services.

2. Brunei Darussalam reserves the right to adopt or maintain any measure relating to the establishment of private laboratory services and private radiology services.

Sector: Private Health Services

Sub-Sector: Private health centres or clinics

Obligations Concerned: Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the establishment of private health centres or clinics, including but not limited to:

(a) requiring that such private health centres or clinics be established in the form of a joint venture with a Brunei national;

(b) limiting the number of private health centres or clinics that can be established in Brunei

Darussalam;

(c) requiring such private health centre or clinic to carry out research and development within the territory of Brunei Darussalam, or transfer of technology; and

(d) requiring a majority of the senior managers in the private health centres or clinics to be of Bruneian nationality.

Sector: Broadcasting Services

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to any licensable free-to-air or subscription broadcasting services offered on a scheduled programming basis. These measures include, but are not limited to ownership, control and funding of an enterprise providing the aforementioned services.

Sector: Business Services

Sub-Sector: Professional services

Legal services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

1. Brunei Darussalam reserves the right to adopt or maintain any measure relating to the supply of legal services in Brunei Darussalam, in relation to the laws of Brunei Darussalam.

2. This entry does not apply to the supply of legal services in Brunei Darussalam in relation to international law or home country law, which is set out in Annex I – Brunei Darussalam – 29.

Sector: Printing, publishing and reproduction of newspapers including matters relating to the collection and publication of news and the distribution of newspapers

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Description: Investment

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the printing, publishing and reproduction of newspapers including matters relating to the collection and publication of news and the distribution of newspapers.

Sector: Transport Services

Sub-Sector: Air transport services

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Brunei Darussalam reserves the right to adopt or maintain any measure related to air transport services including, but not limited to:

(a) the ownership, operation and management of airports and heliports in Brunei Darussalam;

(b) the supply of ground handling operations; and

Sector: Private Educational Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the supply of private pre-primary, primary and secondary education services, other than private educational services supplied by international schools for Brunei Darussalam citizens, including the following:

(a) equity shareholding by foreign nationals or companies in the ownership of schools and

higher learning institutions;

(b) the total number of schools and higher learning institutions that may be established in Brunei Darussalam;

(d) the nationality of senior management or boards of directors.

Sector: Electricity Services

Obligations Concerned: Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the generation, supply, transmission and distribution of electrical energy.

Sector: Transport Services

Sub-Sector: Land transport services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the supply of land transport services including, but not limited to, passenger transportation, freight transportation, and commercial vehicle with operator, pushing and towing services, maintenance and repair of road transport equipment, and supporting services for road transport services.

Sector: Trade Services

Sub-Sector: Supply of potable water for human consumption

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

1. Brunei Darussalam reserves the right to adopt or maintain any measure relating to the supply of potable water, including, but not limited to:

(a) the supply of water as a public utility;

(b) the extraction of ground water; and

2. For greater certainty, this entry is limited to the supply of potable water that may be used or required for any purpose or activity, and does not include additional restrictions on any activities utilising potable water including the manufacturing of bottled water which is an activity addressed in Annex I – Brunei Darussalam – 3.

Sector: Business Services

Sub-Sector: Valuers (appraisers) and estate agents

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the supply of valuers (appraisers) and estate agent services.

Sector: Business Services

Sub-Sector: Taxation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the representation of taxpayers (either by individuals or enterprises) in tax matters, including, but not limited to, preparing and furnishing of income tax returns, filing responses to notices issued by tax authority and filing notices of objection and handling payment in relation to tax.

Sector: Trade Services

Sub-Sector: Wholesale trade services and retail trade services of tobacco

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Brunei Darussalam reserves the right to adopt or maintain any measure relating to the supply of wholesale and retail trade services of tobacco products.

ANNEX II

SCHEDULE OF CANADA

INTRODUCTORY NOTES

In the interpretation of an entry, all elements of the entry shall be considered. The Description element shall prevail over all other elements.

Sector: Aboriginal Affairs

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure denying investors of and their investments, or service suppliers of a Party, any rights or preferences provided to aboriginal peoples.

Existing Measures: Constitution Act, 1982, being Schedule B of the Canada Act 1982 (U.K.), 1982, c. 11

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Canada reserves the right to adopt or maintain a measure relating to residency requirements for the ownership by investors of a Party, or their investments, of oceanfront land.

Sector: Fisheries

Sub-Sector: Fishing and services incidental to fishing

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure with respect to licensing fishing or fishing related activities including entry of foreign fishing vessels to Canada's exclusive economic zone, territorial sea, internal waters or ports and use of services therein.

Existing Measures: Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33 Fisheries Act, R.S.C 1985, c. F-14

Coastal Fisheries Protection Regulations, C.R.C. 1978, c. 413

Commercial Fisheries Licensing Policy

Policy on Foreign Investment in the Canadian Fisheries Sector, 1985

Sector: Government Finance

Sub-Sector: Securities

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Canada reserves the right to adopt or maintain a measure relating to the acquisition, sale or other disposition by nationals of a Party of bonds, treasury bills or other kinds of debt securities issued by the Government of Canada or a Canadian regional government.

Existing Measures: Financial Administration Act, R.S.C. 1985, c. F-11

Sector: Minority Affairs

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure conferring rights or privileges to a socially or economically disadvantaged minority.

Sector: Social Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure for supplying public law enforcement and correctional services, as well as the following services to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health and child care.

Sector: Transportation

Sub-Sector: Air transportation

Obligations Concerned: Most-Favoured-Nation Treatment (Article 10.4)

Description: Cross-Border Trade in Services

Canada reserves the right to selectively negotiate agreements or arrangements with other States, organisations of States, aeronautical authorities or service suppliers to recognise their accreditation of repair, overhaul and maintenance facilities and certification by such facilities of work performed on Canadian registered aircraft and other related aeronautical products.

Sector: Transportation

Sub-Sector: Air transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure relating to the selling and marketing of air transportation services.

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

1. Canada reserves the right to adopt or maintain a measure relating to the investment in or supply of marine cabotage services, including:

(a) the transportation of either goods or passengers by ship between points in the territory of Canada or above the continental shelf of Canada, either directly or by way of a place outside Canada; but with respect to waters above the continental shelf of Canada, the transportation of either goods or passengers only in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada; and

(b) the engaging by ship in any other marine activity of a commercial nature in the territory of Canada and, with respect to waters above the continental shelf, in such other marine activities of a commercial nature that are in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf.

2. This entry relates to, among other things, local presence requirements for service suppliers entitled to participate in these activities, criteria for the issuance of a temporary cabotage licence to foreign ships and limits on the number of cabotage licences issued to foreign ships.

3. For greater certainty, this entry applies, inter alia, to feeder services.

Existing Measures: Coasting Trade Act, S.C. 1992, c. 31

Canada Shipping Act, 2001, S.C. 2001, c. 26

Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

Customs and Excise Offshore Application Act, R.S.C. 1985, c. C-53

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: Most-Favoured-Nation Treatment (Article 10.4)

Description: Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure relating to the implementation of agreements, arrangements and other formal or informal undertakings with other countries with respect to maritime activities in waters of mutual interest in such areas as pollution control (including double hull requirements for oil tankers), safe navigation, barge inspection standards, water quality, pilotage, salvage, drug abuse control and maritime communications.

Sector: All

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

1. Canada reserves the right to adopt or maintain a measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

2. Canada reserves the right to adopt or maintain a measure that accords differential treatment to countries under any bilateral or multilateral agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; or

Sector: Transportation

Sub-Sector: Water transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

1. Canada reserves the right to adopt or maintain a measure denying service suppliers or investors of the United States, or their investments, the benefits accorded to service suppliers or investors of any other country, or their investments, in sectors or activities equivalent to those subject to the entry at Annex II – United States – 5.

2. Canada reserves the right to adopt or maintain a measure relating to maritime transport, including maritime auxiliary services and access to and use of port services, in respect of any other Party only when Canadian maritime interests have been prejudiced by that Party.

3. Paragraph 2 does not apply to the following Parties: Australia, Brunei Darussalam, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet Nam.

Sector: Water Transportation

Sub-Sector: Technical testing and analysis services

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5) Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure relating to the recognition of a person, classification society or organisation authorised to carry out statutory inspections and certification of ships on behalf of Canada. For greater certainty, only a person, classification society or other organisation authorised by Canada, and having a local presence in Canada, may carry out statutory inspections and issue Canadian Maritime Documents to Canadian registered ships and their equipment on behalf of Canada.

Sector: Cultural Industries

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure that affects cultural industries and that has the objective of supporting, directly or indirectly, the creation, development or accessibility of Canadian artistic expression or content, except:

(a) discriminatory requirements on service suppliers or investors to make financial contributions for Canadian content development; and

(b) measures restricting the access to on-line foreign audio-visual content.

For the purpose of this entry, "cultural industries" means persons engaged in any of the following activities:

(a) the publication, distribution, or sale of books, magazines, periodicals or newspapers in print or machine readable form but not including the sole activity of printing or typesetting any of the foregoing;

(b) the production, distribution, sale or exhibition of film or video recordings;

(d) the publication, distribution or sale of music in print or machine readable form; or

(e) radiocommunications in which the transmissions are intended for direct reception by the general public, and all radio, television and cable broadcasting undertakings and all satellite programming and broadcast network services.

Sector: All

Sub-Sector:

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Canada reserves the right to adopt or maintain a measure that is not inconsistent with:

(a) Canada's obligations under Article XVI of GATS1; and

(b) Canada's Schedule of Specific Commitments under the GATS (GATS/SC/16,

GATS/SC/16/Suppl.1,

GATS/SC/16/Suppl.1/Rev.1,

GATS/SC/16/Suppl.2,

GATS/SC/16/Suppl.2/Rev.1, GATS/SC/16/

Suppl.3, GATS/SC/16/Suppl.4 and

GATS/SC/16/Suppl.4/Rev.1).

For greater certainty, this entry applies to measures adopted or maintained that affect the supply of a service by a covered investment pursuant to Article 10.5 (Market Access). For purposes of this entry only, Canada's Schedule of Specific Commitments is modified as indicated in Appendix II.

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 )

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

1. Canada or a province or territory, when selling or disposing of its equity interests in, or the assets of, an existing government enterprise or an existing governmental entity, may prohibit or impose limitations on the ownership of such interests or assets and on the ability of owners of such interests or assets to control a resulting enterprise by investors of a Party or of a non-Party or their investments. With respect to such a sale or other disposition, Canada or a province or territory may adopt or maintain a measure relating to the nationality of senior management or members of the board of directors.

2. For purposes of this entry:

(a) a measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes a nationality requirement described in this entry is an existing measure subject to paragraphs 1, 4, 5 and 6 of Article 9.12 (Non-Conforming Measures) and paragraph 1 of Article 10.7 (Non-Conforming Measures); and

(b) "government enterprise" means an enterprise owned or controlled through ownership interests by Canada or a province or territory, and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing State enterprise or governmental entity2.

Sector: Air Services

Sub-Sector: Ground handling

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Investment: Canada reserves the right to adopt or maintain a measure relating to ground handling by airlines (including self handling or third-party handling) or by investors of another Party.

Cross-Border Trade in Services: Canada reserves the right to adopt or maintain a measure relating to the supply of ground handling services, as defined in Article 10.1 (Definitions), for the purpose of Chapter 10 (Cross-Border Trade in Services).

For greater certainty, this entry does not affect Canada's rights and obligations under any bilateral air transportation agreement between Canada and any of the other Parties.

Sector: Transportation

Sub-Sector: Air services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Investment: Canada reserves the right to adopt or maintain a measure with respect to investment in or operation of airports.

Cross-Border Trade in Services: Canada reserves the right to adopt or maintain a measure relating to the supply of airport operation services, as defined in Article 10.1 (Definitions), for the purpose of Chapter 10 (Cross-Border Trade in Services).

Appendix II

For the following Sectors, Canada's obligations under Article XVI of GATS are improved as described.

ANNEX II

SCHEDULE OF CHILE

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Description: Investment

Chile reserves the right to adopt or maintain any measure relating to the ownership or control of land within five kilometres of the coastline that is used for agricultural activities.

Such measure could include a requirement that the majority of each class of stock of a Chilean juridical person that seeks to own or control such land be held by Chilean persons or by persons residing in Chile for 183 days or more per year.

Existing Measures: Decree Law 1.939, Official Gazette, November 10, 1977, Rules for acquisition, administration and disposal of State owned assets, Title I (Decreto Ley 1.939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I)

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

In the transfer or disposal of any interest in stock or asset held in an existing state enterprise or governmental entity, Chile reserves the right to prohibit or impose limitations on the ownership of said interest or asset and on the right of foreign investors or their investments to control any State company created thereby or investments made by the same. In connection with any such transfer or disposal, Chile may adopt or maintain any measure related to the nationality of senior management and members of the board of directors.

A "State company"1 shall mean any company owned or controlled by Chile by means of an interest share in the ownership thereof, and it shall include any company created after the entry into force of this Agreement for the sole purpose of selling or disposing of its interest share in the capital or assets of an existing state enterprise or governmental entity.

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force on, or signed prior to, the date of entry into force of this Agreement.

Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; or

Existing Measures:

Sector: Communications

Sub-Sector: One way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services; and limited telecommunication services

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure related to cross-border trade in one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services; and limited telecommunication services.

Existing Measures: Law 18.168, Official Gazette, October 2, 1982, General Telecommunications Law, Titles I, II, III, V and VI (Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II, III, V y VI)

Sector: Communications

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Chile reserves the right to adopt or maintain any measure related to the investors of another Party or to their investments in one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services; and limited telecommunication services.

Sector: Issues Involving Minorities

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.

Existing Measures:

Sector: Issues Involving Indigenous Peoples

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure according rights or preferences to indigenous peoples.

Existing Measures:

Sector: Education

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure relating to:

(a) investors and an investment of an investor of another Party in education; and

(b) natural persons who supply educational services in Chile.

Subparagraph (b) includes teachers and auxiliary personnel supplying educational services in pre-school, kindergarten, special education, elementary, secondary or higher education, professional, technical or university education, and all other persons that supply services related to education, including sponsors of educational institutions of any kind, schools, lyceums, academies, training centres, professional and technical institutes or universities.

This reservation does not apply to investors and an investment of an investor of another Party in kindergarten, pre-school, elementary or secondary private education institutions, that do not receive public resources, or to the supply of services related to second-language training, corporate, business, and industrial training and skill upgrading, which include consulting services relating to technical support, advice, curriculum, and programme development in education.

Existing Measures:

Sector: Government Finances

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Chile reserves the right to adopt or maintain any measure related to the acquisition, sale or disposal by another Party's nationals of bonds, treasury securities or any other type of debt instruments issued by the Central Bank of Chile (Banco Central de Chile) or the Government of Chile. This entry is not intended to affect the rights of another Party's financial institutions (banks) established in Chile to acquire, sell or dispose of such instruments when required for the purposes of regulatory capital.

Existing Measures:

Sector: Fisheries

Sub-Sector: Fishing related activities

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to control the activities of foreign fishing, including fish landing, first landing of fish processed at sea and access to Chilean ports (port privileges).

Chile reserves the right to control the use of beaches, land adjacent to beaches (terrenos de playas), water-columns (porciones de agua) and sea-bed lots (fondos marinos) for the issuance of maritime concessions. For greater certainty, "maritime concessions" do not cover aquaculture.

Existing Measures: Decree Law 2.222, Official Gazette, May 31, 1978, Navigation Law, Titles I, II, III, IV and V (Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación Títulos I, II, III, IV y V)

D.F.L. 340, Official Gazette, April 6, 1960, about Maritime Concessions (D.F.L. 340, Diario Oficial, abril 6, 1960, sobre Concesiones Marítimas)

Supreme Decree 660, Official Gazette, November 28, 1988, Maritime Concession Act (Decreto Supremo 660, Diario Oficial, noviembre 28, 1988, Reglamento de Concesiones Marítimas)

Supreme Decree 123 of the Ministry of Economic Affairs, Development and Reconstruction, Vice-Ministry of Fishing, Official Gazette, August 23, 2004, On Use of Ports (Decreto Supremo 123 del Ministerio de Economía, Fomento y Reconstrucción, Subsecretaría de Pesca, Diario Oficial, agosto 23, 2004, Sobre Uso de Puertos)

Sector: Arts and Cultural Industries

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure that accords differential treatment to countries under any existing or future bilateral or multilateral international agreement, with respect to arts and cultural industries, such as audio-visual cooperation agreements.

For greater certainty, government supported subsidy programmes for the promotion of cultural activities are not subject to the limitations or obligations of this Agreement.

For the purposes of this entry, "arts and cultural industries" includes:

(a) books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing;

(b) recordings of movies or videos;

(d) printed music scores or scores readable by machines;

(e) visual arts, artistic photography and new media;

(f) performing arts, including theatre, dance and circus arts; and

(g) media services or multimedia.

Existing Measures:

Sector: Entertainment, Audio-visual and Broadcasting Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure relating to:

(a) the organisation and presentation in Chile of concerts and musical performances;

(b) the distribution or display of movies or videos; and

(c) radio broadcasts aimed at the public in general, as well as all radio, television and cable television related activities, satellite programming services and broadcasting networks.

Notwithstanding the above, Chile shall extend to the persons and investors of another Party, and their investments, treatment no less favourable than that Party accords persons and investors of Chile, and their investments.

Existing Measures:

Sector: Social Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure with respect to the supply of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care and child care.

Existing Measures:

Sector: Environmental Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of drinking water, the collection and disposal of waste water and sanitation services, such as sewage systems, waste disposal and waste water treatment may only be supplied by juridical persons incorporated under Chilean law or created in accordance with the requirements established by Chilean law.

This entry shall not apply to consultancy services retained by the said juridical persons.

Existing Measures:

Sector: Construction Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure with respect to the supply of construction services by foreign juridical persons or legal entities.

These measures may include requirements such as residency, registration or any other form of local presence, or the obligation of giving financial security for work as a condition for the supply of construction services.

Existing Measures:

Sector: Transportation

Sub-Sector: International road transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure relating to the international land transportation of cargo or passengers in border areas.

Additionally, Chile reserves the right to adopt or maintain the following limitations for the supply of international land transportation from Chile:

(a) the service supplier must be a Chilean natural or juridical person;

(b) the service supplier must have a real and effective domicile in Chile; and

(c) in the case of juridical persons, the service supplier must be legally constituted in Chile and more than 50 per cent of its capital stock must be owned by Chilean nationals and its effective control must be by Chilean nationals.

Existing Measures:

Sector: Transportation Services

Sub-Sector: Road transportation services

Obligations Concerned: National Treatment (Article 10.3)

Description: Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure that authorises only Chilean natural or juridical persons to supply land transportation of persons or merchandise inside the territory of Chile (cabotage). For this, the enterprises shall use vehicles registered in Chile.

Existing Measures:

Sector: All

Obligations Concerned: Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Chile reserves the right to adopt or maintain any measure relating to Article 10.5 (Market Access), except for the following sectors and sub-sectors subject to the limitations and conditions listed below:

Legal services:

(1) and (3) None, except in the case of receivers in bankruptcy (síndicos de quiebra) who must be duly authorised by the Ministry of Justice (Ministerio de Justicia), and they can only work in the place where they reside.

(2) None.

(4) No commitments, except as indicated in Labour Code restriction.

Accounting, auditing, and bookkeeping services:

(1) and (3) None, except the external auditors of financial institutions must be inscribed in the Register of External Auditors of the Superintendence of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras) and in the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros). Only firms legally incorporated in Chile as partnerships (sociedades de personas) or associations (asociaciones), and whose main line of business is auditing services, may be inscribed in the Register.

(2) None.

(4) No commitments, except as indicated in Labour Code restriction.

Taxation Services:

(1), (2), and (3): None.

(4) No commitments, except as indicated in Labour Code restriction.

Architectural services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Engineering services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Integrated engineering services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Urban planning and landscape architectural services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Veterinary services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services provided by midwives, nurses, physiotherapists and paramedical personnel:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Computer and related services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Interdisciplinary research and development services, research and development services on natural sciences, and related scientific and technical consulting services:

(1) and (3) None, except: any exploration of a scientific or technical nature, or related to mountain climbing (andinismo), that legal or natural persons domiciled abroad intend to carry out in border areas need to be authorised and supervised by the Directorate of Borders and Frontiers (Dirección de Fronteras y Límites del Estado). The Directorate of Borders and Frontiers may stipulate that an expedition include one or more representatives of relevant Chilean activities. These representatives would participate in and learn about the studies and their scope.

(2) None.

(4) No commitments, except as indicated in Labour Code restriction.

Research and development services on social sciences and humanities:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Real Estate services: involving owned or leased property or on a fee or contract basis:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Rental/leasing services without crew/operators, related to vessels, aircraft, any other transport equipment, and other machinery and equipment:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Advertising services, market research and public opinion polling services, management consulting services, services related to management consulting, technical testing and analysis services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services related to agriculture, hunting and forestry:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services related to mining, placement and supply services of personnel, investigation and security services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Maintenance and repair of equipment (not including vessels, aircraft, or other transport equipment), building-cleaning services, photographic services, packing services, and convention services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Printing and publishing services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Courier services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

International long-distance telecommunications services:

(1), (2), (3) and (4) Chile reserves the right to adopt or maintain any measure that is not inconsistent with Chile's obligations under Article XVI of GATS.

Local basic telecommunication services and networks, intermediate telecommunications services, supplementary telecommunications services, and limited telecommunications services:

(1), (2) and (3) A concession granted by means of a Supreme Decree (Decreto Supremo) issued by the Ministry of Transport and Telecommunications (Ministerio de Transportes y Telecomunicaciones) shall be required for the installation, operation, and exploitation of public and intermediary telecommunications services in Chilean territory. Only juridical persons organised under the Chilean law shall be eligible for such concessions.

An official decision issued by the Undersecretariat of Telecommunications (Subsecretaría de Telecomunicaciones) shall be required to render Supplementary Telecommunications Services, consisting of additional services provided by hooking up equipment to public networks. Said decision refers to compliance with the technical standards established by the Undersecretariat of Telecommunications (Subsecretaría de Telecomunicaciones) and non-alteration of the essential technical features of networks or of the permissible technological or basic service modalities provided through them.

A permit issued by the Undersecretariat of Telecommunications (Subsecretaría de Telecomunicaciones) shall be required for the installation, operation and development of limited telecommunications services.

International traffic shall be routed through the installations of a company holding a concession granted by the Ministry of Transport and Telecommunications (Ministerio de Transporte y Telecomunicaciones).

(4) No commitments, except as indicated in Labour Code restriction.

Commission agents services, wholesale trade services, retailing services, franchising and other distribution:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Environmental Services:

(1) and (3) None, solely for consultancy services. (2) None.

(4) No commitments, except as indicated in Labour Code restriction.

Hotels and restaurants (including catering), travel agencies and tour operators services and tourist guide services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Sporting and other recreational services, excluding gambling and betting services:

(1), (2) and (3) None, except that a specific type of legal entity may be required for sporting organisations that develop professional activities. In addition, (a) it is not permitted to participate with more than one team in the same category of a sport competition; (b) specific regulations may be established on equity ownership in sporting companies; and (c) minimal capital requirements may be imposed. (4) No commitments, except as indicated in Labour Code restriction.

Sports facility operation services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Road Transport: freight transportation, rental of commercial vehicles with operator; maintenance and repair of road transport equipment; supporting services for road transport services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Services auxiliary to all transport: cargo handling services, storage and warehouse services, freight transport agency services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Pipeline transport: transportation of fuels and other goods:

(1), (2) and (3) None, except that the service has to be supplied by juridical persons established under Chilean law and the supply of the service may be subject to a concession on a national treatment basis.

(4) No commitments, except as indicated in Labour Code restriction.

Aircraft repair and maintenance services:

(1) No commitments.

(2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Selling and marketing of air transport services, computer reservation systems (CRS) services, specialty air services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

Airport operation services; ground handling services:

(1), (2) and (3) None.

(4) No commitments, except as indicated in Labour Code restriction.

For the purposes of this entry:

(1) refers to the supply of a service from the territory of one Party into the territory of another Party;

(2) refers to the supply of a service in the territory of one Party to a person of another Party;

(3) refers to the supply of a service in the territory of a Party by an investor of another Party or by a covered investment; and

(4) refers to the supply of a service by a national of a Party in the territory of another Party.

ANNEX II

SCHEDULE OF JAPAN

INTRODUCTORY NOTES

1. In the interpretation of an entry, all elements of the entry shall be considered. The Description element shall prevail over all other elements.

2. For the purposes of this Annex, the term JSIC means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised in October, 2013.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Description:

Investment

1. When transferring or disposing of its equity interests in, or the assets of, a state enterprise or a governmental entity, Japan reserves the right to:

(a) prohibit or impose limitations on the ownership of such interests or assets by investors of

another Party or their investments;

(b) impose limitations on the ability of investors of another Party or their investments as owners of

such interests or assets to control any resulting

enterprise; or

(c) adopt or maintain any measure relating to the nationality of executives, managers or members of the board of directors of any resulting

enterprise.

2. Notwithstanding paragraph 1, the central level of the Government of Japan shall not adopt any prohibition, limitation or measure referred to in paragraph 1 by new laws or regulations following the initial transfer from the central level of government of Japan to an investor of the interests or assets referred to in paragraph 1. For greater certainty, the central level of government of Japan can maintain such prohibition, limitation or measure that is adopted or maintained at the initial transfer.

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments in or the supply of telegraph services, betting and gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes, minting and sale of coinage, and postal services in Japan.

Existing Measures:

Telecommunications Business Law (Law No. 86 of 1984) Supplementary Provisions, Article 5

Postal Law (Law No. 165 of 1947), Article 2

Law Concerning Correspondence Delivery Provided by Private Operators (Law No. 99 of 2002)

Horse Racing Law (Law No. 158 of 1948), Article 1 Law relating to Motorboat Racing (Law No. 242 of 1951), Article 2

Bicycle Racing Law (Law No. 209 of 1948), Article 1 Auto Racing Law (Law No. 208 of 1950), Article 3 Lottery Law (Law No. 144 of 1948), Article 4

The Law relating to Unit of Currency and Issue of Coin (Law No. 42 of 1987), Article 10

Sports Promotion Lottery Law (Law No. 63 of 1998), Article 3

Sector: All (Unrecognised or Technically Unfeasible Services)

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Description:

Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to services other than those recognised or other than those that should have been recognised by the Government of Japan owing to the circumstances at the date of entry into force of this Agreement.

Any services classified positively and explicitly in JSIC or CPC, at the date of entry into force of this Agreement should have been recognised by the Government of Japan at that time.

Japan reserves the right to adopt or maintain any measure relating to the supply of services in any mode of supply in which those services were not technically feasible at the date of entry into force of this Agreement.

Existing Measures:

Sector: Aerospace Industry

Sub-Sector: Space industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to the investments in space industry.

Japan reserves the right to adopt or maintain any measure relating to the supply of services in space industry, including:

(a) services based on technological inducement contracts for importing technology for

development, production or use;

(b) production services on fee or contract basis; (c) repair and maintenance services; and

(d) space transportation services.

Existing Measures:

Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30

Sector: Arms and Explosives Industry

Sub-Sector: Arms industry

Explosives manufacturing industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to the investment in the arms industry and explosives manufacturing industry.

Japan reserves the right to adopt or maintain any measure relating to the supply of services in the arms industry and explosives manufacturing industry, including:

(a) services based on technological inducement contracts for importing technology for

development, production or use;

(b) production services on fee or contract basis; and (c) repair and maintenance services.

Existing Measures:

Ordnance Manufacturing Law (Law No. 145 of 1953), Article 5

Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5

Sector: Information and Communications

Sub-Sector: Broadcasting industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in broadcasting industry.

For the purposes of this entry, "broadcasting" means the transmission of telecommunications with the aim of direct reception by the public (paragraph 1 of Article 2 of the Broadcast Law (Law No. 132 of 1950) and does not include on-demand services including such services supplied over the internet.

Existing Measures:

Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Radio Law (Law No. 131 of 1950), Chapter 2

Broadcast Law, Chapter 2, Chapter 5, Chapter 6, Chapter 7 and Chapter 8

Sector: Education, Learning Support

Sub-Sector: Primary and secondary educational services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of primary and secondary educational services.

Existing Measures:

Fundamental Law of Education (Law No. 120 of 2006), Article 6

School Education Law (Law No. 26 of 1947), Article 2 Private School Law (Law No. 270 of 1949), Article 3 Law Concerning Advancement of Comprehensive Service Related to Education, Child Care, etc. of Preschool Children (Law No.77 of 2005)

Sector: Energy

Sub-Sector: Electricity utility industry

Gas utility industry

Nuclear energy industry

Industry Classification:

JSIC 0519*1 Miscellaneous metal mining

JSIC 2391 Nuclear fuel

JSIC 281*2 Electronic devices

JSIC 282*2 Electronic parts

JSIC 289*2 Miscellaneous electronic parts, devices and electronic circuits

JSIC 291*2 Electrical generating, transmission, and distribution apparatus

JSIC 292*2 Industrial electrical apparatus

JSIC 2952*2 Primary batteries (dry and wet)

JSIC 296*2 Electronic equipment

JSIC 297*2 Electric measuring instruments

JSIC 299*2 Miscellaneous electrical machinery equipment and supplies

JSIC 30*2 Manufacture of information and communication electronics equipment

JSIC 313*2 Shipbuilding and repairing, and marine engines

JSIC 3159*2 Miscellaneous industrial trucks and parts and accessories

JSIC 3199*2 Transportation equipment, n.e.c

JSIC 33 Production, transmission and distribution of electricity

JSIC 34 Production and distribution of gas

JSIC 8899*2 Waste disposal business, n.e.c.

JSIC 9011*2 General machine repair shops, except construction and mining machinery

JSIC 902*2 Electrical machinery, apparatus, appliances and supplies repair shop

Obligations Concerned:

National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Most-Favoured-Nation Treatment (Article 10.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in the energy industry listed in the "sub-sector" element.

Existing Measures:

Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5

Electricity Business Law (Law No.170 of 1964), Article 5 Gas Business Law (Law No.51 of 1954), Article 5

Specified Radioactive Waste Final Disposal Law (Law No. 117 of 2000), Chapter 5

Sector: Fisheries and Services incidental to Fisheries

Sub-Sector: Fisheries within the territorial sea, internal waters, exclusive economic zone and continental shelf

Industry Classification:

Obligations Concerned:

National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in fisheries in the territorial sea, internal waters, exclusive economic zone, and continental shelf of Japan.

For the purposes of this entry, the term "fisheries" means the work of taking and cultivation of aquatic resources, including the following fisheries related services:

(a) investigation of aquatic resources without taking such resources;

(b) luring of aquatic resources;

(d) transportation of fish catches and fish products; and

(e) provision of supplies to other vessels used for fisheries.

Existing Measures:

Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Law for Regulation of Fishing Operation by Foreign Nationals (Law No. 60 of 1967), Article 3, Article 4 and Article 6 Law Concerning the Exercise of Sovereign Rights concerning Fisheries in the Exclusive Economic Zones (Law No. 76 of 1996), Article 4, Article 5, Article 7, Article 8, Article 9, Article 10, Article 11, Article 12 and 14

Sector: Land Transaction

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description:

Investment and Cross-Border Trade in Services

With respect to the acquisition or lease of land properties in Japan, prohibitions or restrictions may be imposed by Cabinet Order on foreign nationals or legal persons, where Japanese nationals or legal persons are placed under identical or similar prohibitions or restrictions in the foreign country.

Existing Measures:

Alien Land Law (Law No. 42 of 1925), Article 1

Sector: Public Law Enforcement and Correctional Services and Social Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Investment and Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to investments or the supply of services in public law enforcement and correctional services, and in social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public training, health, child care and public housing.

Existing Measures:

Sector: Security Guard Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description:

Cross-Border Trade in Services

Japan reserves the right to adopt or maintain any measure relating to the supply of security guard services.

Existing Measures:

Security Business Law (Law No. 117 of 1972), Article 4 and Article 5

Sector: Transport

Sub-Sector: Air transport

Industry Classification:

Obligations Concerned: National Treatment (Articles 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description:

Investment

Japan reserves the right to adopt or maintain any measure with respect to investment in airports or airport operation services as defined in Article 10.1 (Definitions).

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description:

Investment and Cross-Border Trade in Services

1. Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement in force on, or signed prior to, the date of entry into force of this Agreement.

2. Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement, other than the agreement referred to in paragraph 1, involving:

(a) aviation;

(b) fisheries; or

Existing Measures:

ANNEX II

SCHEDULE OF MALAYSIA

Sector: Land and Real Estate

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Acquisitions or dealings of land by non-citizens and enterprises owned by foreign nationals must be approved by the relevant State Authority, subject to such conditions and restrictions as may be imposed by that Authority.

Existing Measures: Land Acquisition Act, 1960 [Act 486]

Land Conservation Act 1960 [Act 385]

National Land Code 1965 [Act 625]

National Land Code (Penang and Malacca Titles) Act 1963 [Act 518]

Strata Titles Act 1985 [Act 318]

Building and Common Property (Maintenance and

Management) Act 2007 [Act 663]

Strata Management Act 2013 [Act 757]

Federal Lands Commissioner Act 1957(Revised 1988) [Act 349]

Land (Group Settlement Areas) Act 1960 [Act 530]

Malay Reservations Enactment 1933 [F.M.S Cap 142]

Kedah Enactment No 63 (Malay Reservations)

Kelantan Malay Reservations Enactment, 1930

Kelantan Land Settlement Act 1955 (Revised 1991) [Act 460]

Perlis Malay Reservations Enactment 1935

Perlis Land Settlement Enactment 1966

Johore Malay Reservation Enactment 1936

Terengganu Malay Reservation Enactment 1941

Terengganu Settlement Enactment 1856

Sabah Land Ordinance [Sabah Cap 68]

Sabah Land Acquisition Ordinance [Sabah Cap 69]

Sarawak Land Code 1958 [Sarawak Cap 81]

Local Government Act 1976 [Act 171]

Town and Country Planning Act 1976 [Act 172]

Federal Territory (Planning) Act 1982 [Act 267] Federal Capital Act 1960 [Act 190]

Street, Drainage and Building Act 1974 [Act 133]

Sector: Oil and Gas

Obligations Concerned: National Treatment (Article 9.4 and 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Petroliam Nasional Berhad (PETRONAS) and its successor are vested with the entire ownership in, and the exclusive rights, powers, liberties and privileges, which shall be irrevocable, in exploring, exploiting, winning and obtaining petroleum whether onshore or offshore of Malaysia.

PETRONAS in its role as the exclusive owner of the petroleum resources, decides on the form and conditions of contractual arrangements available for foreign participation and selection of the contract parties.

Existing Measures: Petroleum Development Act 1974 [Act 144]

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures affecting the:

(a) full or partial devolvement to the private sector of services provided in the exercise of governmental authority;

(b) divestment of its equity interests in, or the assets of, an enterprise that is wholly or partially owned by the Malaysian government; and

The description above pertains only to the initial transfer or disposal of such interest, and for subsequent transfers or disposals that are for strategic sectors announced through the Malaysia Plan.

For greater certainty, where Malaysia transfers any interest in an existing state enterprise to another state enterprise, such transfer shall not be considered to be an initial transfer. Where the transfer or disposal of an interest in an existing state enterprise is undertaken either partially or sequentially, the right shall apply separately to each phase.

Existing Measures: Minister of Finance (Incorporation) Act 1957 [Act 375] Privatisation Master Plan Guidelines on Privatisation

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and 10.3)

Performance Requirements (Article 9.10)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measure that provides assistance to Bumiputera for the purpose of supporting Bumiputera participation in the Malaysian market through the creation of new and additional licences or permits for Bumiputera eligible to receive such assistance, provided that such measures shall not affect the rights of existing licence and permit holders or future applicants for licences and permits in sectors where foreign participation is permitted.

Existing Measures: Policies and Ministerial statements Federal Constitution

Aboriginal Peoples Act 1954 [Act 134]

Interpretation (Definition of Native) Ordinance 1952 [Cap. 64]

Treasury Circular Year 2014

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Malaysia reserves the right to adopt or maintain any measure relating to National and State unit trusts.

Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and 10.4)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

Malaysia reserves the right to adopt or maintain any measure that accords differential treatment to ASEAN member states under any ASEAN agreement open to participation by any ASEAN member state, in force or signed after the date of entry into force of this Agreement.

With regard to the sectors listed below, Malaysia reserves the right to adopt or maintain any measure that accords rights, preferences and differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation matters;

(b) maritime and port;

(d) space transportation1; and

(e) fisheries.

Sector: Manufacture, assembly, marketing and distribution of explosives, weapons, ammunitions, as well as military-related equipment / devices, and similar products

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Malaysia reserves the right to adopt or maintain any measures

affecting the arms and explosives sector.

Existing Measures: Section 4, Industrial Co-Ordination Act 1975 [Act 156]

Explosives Act 1957 [Act 207]

Arms Act 1960 [Act 206]

Sector: Gaming, Betting and Gambling including supply and suppliers of betting and gambling equipment, wholesale and retail of gambling equipment

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures relating to the provision of gaming, betting and gambling including supply and suppliers of betting and gambling equipment, wholesale and retail.

Existing Measures: Lotteries Act 1952 [Act 288]

Common Gaming Houses Act 1953 [Act 289]

Pool Betting Act 1967 [Act 384]

Betting Act 1953 [Act 495]

Racing (Totalisator Board) Act 1961 [Act 494]

Racing Club (Public Sweepstakes) Act 1965 [Act 404]

Customs (Prohibition of Imports) Order 2008 (P.U. (A) 86/2008)

Sector: Non-medical utilisation/application of atomic energy for:

(a) electric power plants based on fossil fuel/materials;

(b) nuclear power generation including nuclear fuel cycle; and

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures relating to non-medical utilisation or application of atomic energy for:

(a) electric power plants based on fossil fuel or materials;

(b) nuclear power generation including nuclear fuel cycle; and

Existing Measures: Atomic Energy Licensing Act 1984 [Act 304]

Sector: Cultural Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to review the following products following their importation and distribution in the Malaysian market to ensure their consistency with Malaysia's decency standards: books, magazines, periodicals or newspapers, works of art and films imported into Malaysia, programming licensed for broadcast on television, cable and satellite stations.

In addition, prior approval is required for any arts, filming and performances by foreign artist and such activities shall comply with the Central Agency for Application for Filming and Performance by Foreign Artistes (PUSPAL) Guidelines.

Such review and pre-approval shall be administered in an objective, transparent and impartial manner, and consistent, where applicable, with Article 2.3 (National Treatment) and the Communications and Multimedia Act 1998 [Act 588].

Existing Measures: Printing Presses and Publications Act 1984 [Act 301]

Akta Perbadanan Kemajuan Filem Nasional Malaysia 1981 [Act 244]

Akta Perbadanan Kemajuan Kraftangan Malaysia 1979 [Act 222]

Dasar Industri Kreatif Negara (DIKN) 2010

Central Agency Committee for Application for Filming and

Performance by Foreign Artistes (PUSPAL) Guidelines

Sector: Wholesale and Distribution Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures relating to wholesale and distribution services for rice, sugar (other than refined sugar for food and beverage manufacturers), flour, liquor and alcoholic beverages, tobacco and cigarettes products.

Sector: Sewage and Refuse Disposal

Sanitation and other Environmental Protection Services

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Malaysia reserves the right to adopt or maintain any measures relating to the collection, treatment and disposal of hazardous waste (excluding carbon gases).

Existing Measures: Environmental Quality Act 1974 [Act 127]

Sector: Air Transport Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Malaysia reserves the right to adopt and maintain any measure affecting:

(a) airport operation services;

(b) aircraft repair and maintenance services;

(d) specialty air services; and

Investment

(e) air transport services covering passenger and

freight transportation frequencies and routing by air.

Sector: Passenger Road Transportation Services covering taxi services and scheduled passenger road transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures relating to passenger and scheduled passenger road transportation services covering urban and sub-urban regular transportation, railway, taxi services; and bus, taxi and rail station services.

Sector: Legal Services covering mediation and Shari'a law

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures relating to mediation and Shari'a law.

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measures related to the non-internationalisation of ringgit which includes:

(a) the requirement for international settlement to be made in foreign currency;

(b) limitation on the access to ringgit financing by non-residents for use outside Malaysia; and

Existing Measures: Central Bank of Malaysia Act 2009 [Act 701]

Financial Services Act 2013 [Act 758]

Islamic Financial Services Act 2013 [Act 759]

Notices on Foreign Exchange Administration Rules

Sector: Social Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Malaysia reserves the right to adopt or maintain any measure with respect to the supply of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health and child care.

ANNEX II

SCHEDULE OF MEXICO

INTRODUCTORY NOTES

For the purposes of this Annex:

The term "CMAP" means Mexican Classification of Activities and Products (Clasificación Mexicana de Actividades y Productos) numbers as set out in National Institute for Statistics and Geography (Instituto Nacional de Estadística y Geografía), Mexican Classification of Activities and Products (Clasificación Mexicana de Actividades y Productos), 1994.

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Description: Cross-Border Trade in Services

Mexico reserves the right to adopt or maintain any measure restricting the acquisition, sale or other disposition of bonds, treasury bills or any other kind of debt security issued by the federal, state or local governments.

Existing Measures:

Sector: Energy

Sub-Sector: Oil and other hydrocarbons

Electricity

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Description: Investment

Mexico allows private investment exclusively through contractual arrangements with respect to the exploration and production of oil and other hydrocarbons, and the public service of transmission and distribution of electricity.

If Mexican law is amended to allow private investment in a different modality from that set out in the first paragraph, or to allow the sale of assets or ownership interest in an enterprise engaged in the activities set out in the first paragraph, Mexico reserves the right to impose restrictions on such investment. Any such restrictions shall be deemed existing Annex I non conforming measures and shall be subject to paragraphs 1, 3 and 7 of Article 9.12 (Non-Conforming Measures).

For greater certainty, Mexico affirms the principle reflected in Articles 25, 27 and 28 of the Constitution that the exploration and production of oil and other hydrocarbons, the planning and control of the National Electric System and the public service of transmission and distribution of electricity are reserved to the State.

Existing Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles 25, 27 and 28

Federal Electricity Commission Law (Ley de la Comisión Federal de Electricidad)

Foreign Investment Law (Ley de Inversión Extranjera)

Hydrocarbons Law (Ley de Hidrocarburos) Petroleos Méxicanos Law (Ley de Petróleos Mexicanos) The Electric Industry Law (Ley de la Industria Eléctrica)

Sector: Entertainment Services

Sub-Sector: Recreational and leisure services

Industry Classification: CMAP 949104 Other Private

Recreational and Leisure Services (limited to gambling and betting services)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Description: Investment and Cross-Border Trade in Services

Mexico reserves the right to adopt or maintain any measure relating to investment in, or the supply of, gambling and betting services.

Existing Measures:

Sector: Minority Affairs

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3) Local Presence (Article 10.6)

Level of Government: Central

Description:

Cross-Border Trade in Services

Mexico reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged groups.

Existing Measures: United Mexican States Political Constitution, Article 4 (Constitución Política de los Estados Unidos Mexicanos)

Sector: Social Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Level of Government: Central

Description: Investment and Cross-Border Trade in Services

Mexico reserves the right to adopt or maintain any measure with respect to the supply of public law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health and child care.

Existing Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Articles 4, 17, 18, 25, 26, 28 and 123

Sector: Transportation

Sub-Sector: Specialised personnel

Industry Classification: CMAP 951023 Other Professional,

Technical and Specialised Services (limited to ship captains; aircraft pilots; ship masters; ship machinists; ship mechanics; airport administrators (comandantes de aeródromos); harbour masters; harbour pilots; crew on Mexican flagged vessels or aircrafts)

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Level of Government: Central

Description Cross-Border Trade in Services

Mexico reserves the right to adopt or maintain any measure with respect to specialised personnel. Only Mexican nationals by birth may serve as:

(a) captains, pilots, ship masters, machinists, mechanics and crew members manning vessels or aircraft under the Mexican flag; and

(b) harbour pilots, harbour masters and airport administrators.

Existing Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos), Article 32

Sector: All

Sub-Sector:

Telegraph, radiotelegraph and postal services

Issuance of bills (currency) and minting of coinage

Control, inspection and surveillance of maritime and inland ports

Control, inspection and surveillance of airports and heliports

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Level of Government: Central

Description: Investment

The activities set out in this list are reserved to the Mexican State, and private equity investment is prohibited under Mexican Law. Where Mexico allows private investment to participate in such activities through service contracts, concessions, lending arrangements or any other type of contractual arrangement, such participation shall not be construed to affect the State's reservation of those activities.

If Mexican law is amended to allow private equity investment in an activity set out in this list, Mexico may impose restrictions on foreign investment participation and those restrictions shall be deemed existing Annex I non-conforming measures and shall be subject to paragraphs 1, 3 and 7 of Article 9.12 (Non-Conforming Measures). Mexico may also impose restrictions on foreign equity investment participation when selling an asset or ownership interest in an enterprise engaged in activities set out in this list, and those restrictions shall be deemed existing Annex I non-conforming measures and shall be subject to paragraphs 1, 3 and 7 of Article 9.12 (Non-Conforming Measures).

(a) Telegraph, radiotelegraph and postal services;

(b) Issuance of bills (currency) and minting of coinage;

(d) Control, inspection and surveillance of airports and heliports; and

(e) Nuclear power.

Existing Measures: United Mexican States Political Constitution (Constitución Política de los Estados Unidos Mexicanos) Articles 25 and 28.

Law of the Mexican Bank (Ley del Banco de México)

Law of the House of Currency of Mexico (Ley de la Casa de Moneda de México)

United Mexican States Monetary Law (Ley Monetaria de los Estados Unidos Mexicanos).

Commercial and Navigation Maritimes Law (Ley de Navegación y ComercioMarítimos)

Ports Law (Ley de Puertos)

Airports Law (Ley de Aeropuertos)

Federal Telecommunication and Broadcasting Law (Ley Federal de Telecomunicaciones y Radiodifusión)

Decree that establish the decentralized agency of Navigation Services in the Mexican Airspace, SENEAM (by its acronym in Spanish) (Decreto que Crea el Organismo Desconcentrado de Servicios a la Navegación en el Espacio Aéreo Mexicano, SENEAM)

General Means of Communication Law (Ley de Vías Generales de Comunicación)

The Mexican Postal Service Law (Ley del Servicio Postal Mexicano), Title I, Chapter III

Foreign Investment Law (Ley de Inversión Extranjera)

Sector:

Sub-Sector:

All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5)

Level of Government: Central

Description: Investment

Mexico reserves the right to adopt or maintain any measure granting different treatment to countries accorded under all bilateral or multilateral international agreements in force prior to the date of the entry into force of this Agreement.

Mexico reserves the right to adopt or maintain any measure granting different treatment to countries accorded under all international agreements in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; or

Sector: All

Sub-Sector:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central and Regional

Description: Cross-Border Trade in Services

Mexico reserves the right to adopt or maintain any measure related to Article 10.5 (Market Access), except for the following sectors and sub-sectors subject to the limitations and conditions listed below.

For the purpose of this entry:

(a) "1)" refers to the supply of a service from the territory of one Party into the territory of any other Party;

(b) "2)" refers to the supply of a service in the territory of one Party by a person of that Party to a person of the other Party;

(c) "3)" refers to the supply of a service in the territory of one Party by an investor of the other Party or a covered investment; and

(d) "4)" refers to the supply of a service by a national of one Party, in the territory of any other Party.

This entry:

(a) applies to central level;

(b) applies to regional level in accordance with specific commitments of Mexico under the Article XVI of GATS which exist at the date of entry into force of this Agreement; and

This entry does not apply to entries listed in Annex I with respect to Article 10.5 (Market Access). Mexico's limitations on market access in this entry are only those limitations which are not discriminatory.

* Unbound due to technical unfeasibility.

** The specified service constitutes only a part of the total number of activities covered by the corresponding CPC code.

*** The specified service is an element of a bigger CPC code added in another place in

ANNEX II

SCHEDULE OF NEW ZEALAND

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to:

(a) the provision of public law enforcement and correctional services; and

(b) the following, to the extent that they are social services established for a public purpose:

(i) childcare;

(ii) health;

(iii) income security and insurance;

(iv) public education;

(v) public housing;

(vi) public training;

(vii) public transport;

(viii) public utilities;1

(xi) social security and insurance; and

(x) social welfare.

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to water, including the allocation, collection, treatment and distribution of drinking water.

This reservation does not apply to the wholesale trade and retail of bottled mineral, aerated and natural water.

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt and maintain any measure solely as part of the act of devolving a service that is provided in the exercise of governmental authority at the date of entry into force of the Agreement. Such measures may include:

(a) restricting the number of service suppliers;

(b) allowing an enterprise, wholly or majority owned by the Government of New Zealand, to be the sole service supplier or one amongst a limited number of service suppliers;

(d) requiring local presence; and

(e) specifying the juridical form of the service supplier.

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

Where the New Zealand Government wholly owns or has effective control over an enterprise, then New Zealand reserves the right to adopt or maintain any measure regarding the sale of any shares in that enterprise or any assets of that enterprise to any person, including according more favourable treatment to New Zealand nationals.

Entities within the scope of this reservation include state-owned enterprises at the central level of government. For transparency purposes, such enterprises include:

(a) Airways Corporation of New Zealand Limited;

(b) Animal Control Products Limited;

(d) Electricity Corporation of New Zealand Limited;

(e) KiwiRail Holdings Limited;

(f) Kordia Group Limited;

(g) Landcorp Farming Limited;

(h) Learning Media Limited;

(i) Meteorological Service of New Zealand Limited;

(j) New Zealand Post Limited;

(k) New Zealand Railways Corporation;

(l) Quotable Value Limited;

(m) Solid Energy New Zealand Limited; (n) Terralink NZ Limited; and

(o) Transpower New Zealand Limited. ANNEX II – NEW ZEALAND – 6

Sector: All

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

New Zealand reserves the right to adopt or maintain any measure that sets out the approval criteria to be applied to the categories of overseas investment that require approval under New Zealand's overseas investment regime.

For transparency purposes those categories, as set out in Annex I – New Zealand – 12 and 13, are:

(a) acquisition or control by non-government sources of 25 per cent or more of any class of shares2 or voting power3 in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$200 million;

(c) acquisition or control by government sources of 25 per cent or more of any class of shares or voting power5 in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$100 million;

(f) any transaction, regardless of dollar value, that would result in an overseas investment in fishing quota.

Existing Measures: Overseas Investment Act 2005

Fisheries Act 1996

Overseas Investment Regulations 2005

Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure that accords differential treatment to a Party or a non Party under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

New Zealand reserves the right to adopt or maintain any measure that accords differential treatment to a Party or a non Party under any international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; and

Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure taken as part of a wider process of economic integration or trade liberalisation between the parties to the Australia New Zealand

Closer Economic Relations Trade Agreement (ANZCERTA) or the Pacific Agreement on Closer Economic Relations (PACER) that accords differential treatment to a Party or a non-Party.

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure regarding the control, management or use of:

(a) protected areas, being areas established under and subject to the control of legislation, including resources on land, interests in land or water, that are set up for heritage management purposes (both historic and natural heritage), public recreation and scenery preservation; or

(b) species owned under enactments by the Crown or that are protected by or under an enactment.

Existing Measures: Conservation Act 1987 and the enactments listed in Schedule 1 of the Conservation Act 1987

Resource Management Act 1991

Local Government Act 1974

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any nationality or residency measures in relation to:

(a) animal welfare; and

(b) the preservation of plant, animal and human life and health, including in particular:

(i) food safety of domestic and exported foods;

(ii) animal feeds;

(iii) food standards;

(iv) biosecurity;

(v) biodiversity; and

(vi) certification of the plant or animal health status of goods.

Nothing in this reservation shall be construed to derogate from the obligations of Chapter 7 (Sanitary and Phytosanitary Measures) or the obligations of the SPS Agreement.

Nothing in this reservation shall be construed to derogate from the obligations of Chapter 8 (Technical Barriers to Trade) or the obligations of the TBT Agreement.

Sector: All

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to maintain or adopt any measure made by or under an enactment in respect of the foreshore and seabed, internal waters as defined in international law (including the beds, subsoil and margins of such internal waters), territorial sea, the Exclusive Economic Zone and the continental shelf, including for the issuance of maritime concessions in the continental shelf.

Existing Measures: Resource Management Act 1991

Marine and Coastal Area (Takutai Moana) Act 2011

Continental Shelf Act 1964

Crown Minerals Act 1991

EEZ and Continental Shelf (Environmental Effects) Act 2012

Sectors: All

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure that is not inconsistent with New Zealand's obligations under Article XVI of GATS as set out in New Zealand's Schedule of Specific Commitments under GATS (GATS/SC/62, GATS/SC/62 Suppl. 1, GATS/SC/62/Suppl. 2).

For the purposes of this entry only, New Zealand's Schedule of Specific Commitments is modified as set out in Appendix A.

Sector: Business Services

Fire Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to the provision of fire-fighting services, excluding aerial fire-fighting services.

Existing Measures: Fire Service Act 1975

Forest and Rural Fires Act 1977

Sector: Business Services

Research and Development

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to:

(a) research and development services carried out by State- funded tertiary institutions or by Crown Research Institutes when such research is conducted for a public purpose; and

(b) research and experimental development services on physical sciences, chemistry, biology, engineering and technology, agricultural sciences, medical, pharmaceutical and other natural sciences, i.e. CPC 8510.

Sector: Business Services

Technical Testing and Analysis Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure in respect of:

(a) composition and purity testing and analysis services (CPC 86761);

(b) technical inspection services (CPC 86764);

(d) geological, geophysical and other scientific prospecting services (CPC 86751); and

(e) drug testing services.

Sector: Business Services

Fisheries and Aquaculture

Services related to fisheries and aquaculture

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to control the activities of foreign fishing, including fishing landing, first landing of fish processed at sea, and access to New Zealand ports (port privileges), consistent with the provisions of the United Nations Convention on the Law of the Sea.

Existing Measures: Fisheries Act 1996

Aquaculture Reform Act 2004

Sector: Business Services

Energy

Manufacturing

Wholesale Trade

Retail

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt any measure in order to prohibit, regulate, manage or control the production, use, distribution or retail of nuclear energy, including setting conditions for natural persons or juridical persons to do so.

Sector: Communication Services

Audio-visual and other Services

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain preferential co-production arrangements for film and television productions.

Official co-production status, which may be granted to a co production produced under these co-production arrangements, confers national treatment on works covered by these arrangements.

Existing Measures: For greater transparency, section 18 of the New Zealand Film Commission Act 1978 limits Commission funding to films with a "significant New Zealand content". This criterion is deemed to be satisfied if made pursuant to a co-production agreement or arrangement with the partner country in question.

Sector: Communication Services

Audio-visual and other Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to the promotion of film and television production in New Zealand and the promotion of local content on public radio and television, and in films.

Sector: Agriculture, including services incidental to agriculture

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

New Zealand reserves the right to adopt or maintain any measure with respect to:

(a) the holding of shares in the co-operative dairy company arising from the amalgamation authorised under the Dairy Industry Restructuring Act 2001 (DIRA) (or any successor body); and

(b) the disposition of assets of that company or its successor bodies.

Existing Measures: Dairy Industry Restructuring Act 2001

Sector: Agriculture, including services incidental to agriculture

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to the export marketing of fresh kiwifruit to all markets other than Australia.

Existing Measures: Kiwifruit Industry Restructuring Act 1999 and Regulations

Sector: Agriculture, including services incidental to agriculture

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to:

(a) specifying the terms and conditions for the establishment and operation of any government endorsed allocation scheme for the rights to the distribution of export products falling within the HS categories covered by the WTO Agreement on Agriculture to markets where tariff quotas, country-specific preferences or other measures of similar effect are in force; and

(b) the allocation of distribution rights to wholesale trade service suppliers pursuant to the establishment or operation of such an allocation scheme.

This entry is not intended to have the effect of prohibiting investment in the provision of wholesale trade and distribution services relating to goods in the HS chapters covered by the WTO Agreement on Agriculture. The entry applies in respect of investment to the extent that wholesale trade and distribution services are provided with respect to agricultural products that are subject to tariff quotas, country-specific preferences or other measures of similar effect.

Sector: Agriculture, including services incidental to agriculture

Obligations Concerned: Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to maintain or adopt any measure necessary to give effect to the establishment or implementation of mandatory marketing plans (also referred to as "export marketing strategies") for the export marketing of products derived from:

(a) agriculture;

(b) beekeeping;

(d) arboriculture;

(e) arable farming; and

(f) the farming of animals,

where there is support within the relevant industry that a mandatory collective marketing plan should be adopted or activated.

For the avoidance of doubt, mandatory marketing plans, in the context of this entry, exclude measures limiting the number of market participants or limiting the volume of exports.

Existing Measures: New Zealand Horticulture Export Authority Act 1987

Sector: Health and Social Services

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to all services suppliers and investors for the supply of adoption services.

Existing Measures: Adoption Act 1955

Adoption (Inter-country) Act 1997

Sector: Recreation, Cultural and Sporting

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to gambling, betting and prostitution services.

Existing Measures: Gambling Act 2003 and Regulations

Prostitution Reform Act 2003

Racing Act 2003

Racing (Harm Prevention and Minimisation) Regulations 2004

Racing (New Zealand Greyhound Racing Association Incorporated) Order 2009

Sector: Recreation, Cultural and Sporting

Library, Archive, Museum and other Cultural Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure in respect of:

(a) cultural heritage of national value, including ethnological, archaeological, historical, literary, artistic, scientific or technological heritage; as well as collections that are documented, preserved and exhibited by museums, galleries, libraries, archives and other heritage collecting institutions;

(b) public archives;

(d) services for the preservation of historical or sacred sites or historical buildings.

Sector: Transport

Maritime Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to:

(a) the carriage by sea of passengers or cargo between a port located in New Zealand and another port located in New Zealand and traffic originating and terminating in the same port in New Zealand (maritime cabotage);

(b) the establishment of registered companies for the purpose of operating a fleet under the New Zealand flag; and

Sector: Distribution Services

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure for public health or social policy purposes with respect to wholesale and retail trade services of tobacco products and alcoholic beverages.

Sector: Financial Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

New Zealand reserves the right to adopt or maintain any measure with respect to the supply of:

(a) compulsory social insurance for personal injury caused by accident, work related gradual process disease and infection, and treatment injury; and

(b) disaster insurance for residential property for replacement cover up to a defined statutory maximum.

Sector: All Sectors

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Description: Investment

New Zealand reserves the right to adopt or maintain any taxation measure with respect to the sale, purchase or transfer of residential property (including interests that arise via leases, financing and profit sharing arrangements, and acquisition of interests in enterprises that own residential property).

For greater certainty, residential property does not include non-residential commercial real estate.

Appendix A

For the purposes of entry Annex II – New Zealand – 14, New Zealand's obligations under Article XVI of GATS as set out in New Zealand's Schedule of Specific Commitments under GATS (GATS/SC/62, GATS/SC/62 Suppl. 1, GATS/SC/62/Suppl. 2) are improved in the following sectors as described below.

ANNEX II

SCHEDULE OF PERU

Sector: All

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

Peru reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreements in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries; or

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Peru, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise2or an existing governmental entity, may prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests or assets to control any resulting enterprise, by investors of a Party or of a non-Party or their investments. With respect to such a sale or other disposition,

Peru may adopt or maintain any measure relating to the nationality of individuals appointed to senior management positions or members of the board of directors.

For the purposes of this entry:

(a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes nationality requirements described in this entry shall be deemed to be an existing measure subject to Article 9.12.1, Article 9.12.4, Article 9.12.5 and Article 9.12.6 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures); and

(b) "state enterprise" means an enterprise owned or controlled through ownership interests by Peru and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.

Existing Measures:

Sector: Indigenous Communities, Peasant, Native and Minority Affairs

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities and ethnic groups. For purposes of this entry, "ethnic groups" means indigenous, native, and peasant communities.

Existing Measures:

Sector: Fishing and Services related to Fishing

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to artisanal fishing.

Existing Measures:

Sector: Cultural Industries

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

For purposes of this entry, "cultural industries" means:

(a) publication, distribution, or sale of books, magazines, periodical publications, or printed or electronic newspapers, excluding the printing and typesetting of any of the foregoing;

(b) production, distribution, sale, or display of recordings of movies or videos;

(d) production and presentation of theatre arts3;

(e) production and exhibition of visual arts;

(f) production, distribution, or sale of printed music scores or scores readable by machines;

(g) design, production, distribution and sale of handicrafts; or

(h) radiobroadcasts aimed at the public in general, as well as all radio, television, and cable television-related activities, satellite programming services, and broadcasting networks.

Peru reserves the right to adopt or maintain any measure giving preferential treatment to persons of other countries pursuant to any existing or future bilateral or multilateral international agreement regarding cultural industries, including audio-visual cooperation agreements.

For greater certainty, Article 9.4 (National Treatment) and Article 9.5 (Most-Favoured-Nation Treatment) and Chapter 10 (Cross-Border Trade in Services) shall not apply to government support for the promotion of cultural industries.

Existing Measures:

Sector: Handicraft Industries

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to the design, distribution, retailing or exhibition of handicrafts that are identified as Peruvian handicrafts.

Performance requirements shall in all cases be consistent with the WTO Agreement on Trade-Related Investment Measures (TRIMs Agreement).

Existing Measures:

Sector: Audio-Visual Industry

Sub-Sector:

Obligations Concerned: Performance Requirements (Article 9.10)

National Treatment (Article 10.3)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure whereby a specified percentage (up to 20 per cent) of the total cinematographic works shown on an annual basis in cinemas or exhibition rooms in Peru consist of Peruvian cinematographic works. In establishing such percentage,

Peru shall take into account factors including the national cinematographic production, the existing exhibition infrastructure in the country and attendance.

Existing Measures:

Sector: Jewellery Design

Theatre Arts

Visual Arts

Music

Publishing

Sub-Sector:

Obligations Concerned: Performance Requirements (Article 9.10)

National Treatment (Article 10.3)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure conditioning the receipt or continued receipt of government support for the development and production of jewellery design, theatre arts, visual arts, music and publishing on the recipient achieving a given level or percentage of domestic creative content.

Existing Measures:

Sector: Audio-Visual Industry

Publishing

Music

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Peru may adopt or maintain any measure that affords a person of another Party the treatment that is afforded by that Party to Peruvian persons in the audio-visual, publishing and music sectors.

Existing Measures:

Sector: Social Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: income security and insurance, social security, social welfare, public education, public training, health and childcare.

Existing Measures:

Sector: Public Supply of Potable Water

Sub-Sector:

Obligations Concerned: Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure in relation to the public supply of potable water.

For greater certainty, nothing in this entry shall affect the ability of a foreign enterprise to supply bottled water.

Existing Measures:

Sector: Public Sewage Services

Sub-Sector:

Obligations Concerned: Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure in relation to public sewage services.

Existing Measures:

Sector: Telecommunications Services

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 10.4) Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure in relation to the granting of a concession for the installation, operation and exploitation of public telecommunication services.

Existing Measures:

Sector: Education Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to natural persons who supply educational services, including teachers and auxiliary personnel rendering educational services in basic and superior education including technical and productive training (educación técnico productiva) as well as other people who supply services related to education including sponsors of educational institutions of any level or stage of the educational system.

Existing Measures:

Sector: Transportation Services

Sub-Sector: Road Transportation Services

Obligations Concerned: National Treatment (Article 10.3)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure that authorises only Peruvian natural or juridical persons to supply land transportation of persons or merchandise inside the territory of Peru (cabotage). For this, the enterprises shall use vehicles registered in Peru.

Existing Measures:

Sector: Transportation

Sub-Sector: International road transportation services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to the international land transportation of cargo or passengers in border areas.

Additionally, Peru reserves the right to adopt or maintain the following limitations for the supply of international land transportation from Peru:

(a) the service supplier must be a Peruvian natural or juridical person;

(b) the service supplier must have a real an effective domicile in Peru; and

(c) in the case of juridical persons, the service supplier must be legally constituted in Peru and more than 50 per cent of its capital stock must be owned by Peruvian nationals and its effective control must be by Peruvian nationals.

Existing Measures:

Sector: Transportation

Sub-Sector: Air transportation services

Obligations Concerned: Most-Favoured-Nation Treatment (Article 10.4) Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to ground-handling services.

Existing Measures:

Sector: Transportation

Sub-Sector: Air transportation services

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to airport operation services.

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Peru reserves the right to adopt or maintain any measure relating to Article 10.5 (Market Access), except for the following sectors and sub-sectors subject to the limitations and conditions listed below:

Legal services: For (a) and (c): None, except that the number of notary positions depends of the number of inhabitants of each city. For (b): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros). Accounting, auditing and bookkeeping services: For (a) and (c): None, except that auditing societies shall be constituted only and exclusively by public accountants licensed and resident in the country and duly qualified by the Association of Public Accountants of Lima (Colegio de Contadores Públicos de Lima). No partner may be a member of another auditing society in Peru. For (b): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Taxation services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Architectural services: For (a), (b) and (c): None, except that for temporary registration, non-resident foreign architects must have a contract of association with a Peruvian architect residing in Peru. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Engineering services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Integrated engineering services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Urban planning and landscape architectural services: For (a), (b) and (c): None, except that to obtain temporary registration, non-resident foreign architects must have a contract of association with a Peruvian architect residing in Peru. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Veterinary Services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Services provided by midwives, nurses, physiotherapists, and paramedical personnel: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Computer and Related Services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Research and Development services on natural sciences: For (a), (b) and (c): None, except that a permission of operation may be required and the competent authority may require the inclusion to the expedition of one or more representatives of the Peruvian pertinent activities, in order to participate and know the studies and its scope. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Research and Development services on social sciences and humanities: For (a), (b) and (c): None, subject to the respective authorisations of the competent authority. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Interdisciplinary Research and Development services: For (a), (b) and (c): None, except that a permission of operation may be required. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Real Estate Services: Involving owned or leased property or on a fee or contract basis: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Rental/leasing services without crew/operators, related to vessels, aircraft, any other transport equipment, and other machinery and equipment:

For (a), (b) and (c): None, except that: A "National Shipowner" or "National Ship Enterprise" is understood as a natural person of Peruvian nationality or juridical person constituted in Peru, with its principal domicile and real and effective headquarters in Peru, whose business is to provide water transportation services in national traffic or cabotage4or international traffic and who is the owner or lessee under a financial lease or a bareboat charter, with an obligatory purchase option, of at least one Peruvian flag merchant vessel and that has obtained the relevant Operation Permit from the General Aquatic Transport Directorate (Dirección General de Transporte Acuático).

Cabotage is exclusively reserved to Peruvian flagged merchant vessels owned by a National Shipowner or National Ship Enterprise or leased under a financial lease or a bareboat charter, with an obligatory purchase option, except that:

(i) up to 25 per cent of the transport of hydrocarbons in national waters is reserved for the ships of the Peruvian Navy; and

(ii) foreign-flagged vessels may be operated exclusively by National Shipowners or National Ship Enterprise for a period of no more than six months for water transportation exclusively between Peruvian ports or cabotage when such an entity does not own its own vessels or lease vessels under the modalities previously mentioned.

For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Advertising services: For (a), (b) and (c): None, except that: Commercial advertising produced in Peru, must use at least 80 per cent national artists. National artists shall receive no less than 60 per cent of the total payroll for wages and salaries paid to artists. The same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in commercial advertising. For (d): No commitments, except as indicated in the Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante) and Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Market research and public opinion polling services, management consulting services, services related to management consulting, and technical testing and analysis services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Services related to agriculture, hunting, and forestry: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Services incidental to fishing: solely advisory and consulting services relating to fishing: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Services related to mining, placement and supply services of personnel, and investigation and security services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Related scientific and technical consulting services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Maintenance and repair of equipment (not including vessels, aircraft, or other transport equipment), building-cleaning services, photographic services, packing services and convention services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratacion de Trabajadores Extranjeros).

Printing and publishing services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de rabajadores Extranjeros).

Other (CPC 8790) except: credit rating services (CPC 87901); jewellery design services; design services of handicrafts that are identified as Peruvian handicrafts; and other business services non elsewhere classified (CPC 87909): For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Express delivery services: For (a) and (b): No commitments. For (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Advisory services on telecommunications: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

National or international long-distance telecommunications services: For (a), (b), (c) and (d): Peru reserves the right to adopt or maintain any measure that is not inconsistent with Peru's obligations under Article XVI of GATS.

Carrier telecommunications services, private telecommunications services and value added service: For (a), (b), (c): None, except for the obligation of obtaining a concession, authorisation, registry or any other title which Peru considers convenient to grant in order to habilitate the suppliers to provide these services. The juridical persons constituted under Peruvian law can be eligible for a concession.

International traffic shall be routed through the installations of a company holding a concession or other permission for operation granted by the Ministry of Transport and Communications (Ministerio de Transportes y Comunicaciones).

Interconnection among private services is prohibited. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Commission agents services (except hydrocarbons): For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Retailing services, except alcohol and tobacco: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Wholesale trade services (except hydrocarbons): For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Franchising: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Construction services: solely consulting services related to construction: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Higher Education Services6: For (a): No commitments, except for subjects that are part of a program that mainly takes place outside Peru. For (b): None. For (c) and (d): No commitments.

Environmental services: solely consulting services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Hotels and restaurants (including catering), travel agencies and tour operators services, and tourist guide services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Entertainment services (including theatre, live bands, and circus services), news agencies services, libraries, archives, museums, and other cultural and sporting services: For (a), (b) and (c): None, except that:

(i) any domestic theatre and visual arts production and any domestic artistic live performance must be comprised of at least 80 per cent national artists. National artists shall receive no less than 60 per cent of the total payroll for wages and salaries paid to artists. The same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in artistic activities.

(ii) a foreign circus may stay in Peru with the original cast for a maximum of 90 days. This period may be extended for the same period of time. If it is extended, the foreign circus will include a minimum of 30 per cent Peruvian nationals as artists and 15 per cent Peruvian nationals as technicians. The same percentages shall apply to the payroll of salaries and wages.

For (d): No commitments, except as indicated in the Law of the Artist and Performer (Ley del Artista, Intérprete y Ejecutante) and Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Exploitation of facilities for competitive and recreational sports: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Recreational parks services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Road Transport: rental of commercial vehicles with operator, maintenance and repair of road transport equipment, and exploitation of roads, bridges and tunnels services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Services auxiliary to all transport: cargo handling services; storage and warehouse services; freight transport agency services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Aircraft repair and maintenance services: For (a): No commitments. For (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Selling and marketing of air transport services, and computer reservation system services: For (a), (b) and (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

Airport operation and ground handling services: For (a) and (b) No commitments. For (c): None. For (d): No commitments, except as indicated in the Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros).

For greater certainty, nothing in this entry shall be inconsistent with Peru's commitments under Article XVI of GATS.

For purposes of this entry:

1. "(a)" refers to the supply of a service from the territory of one Party into the territory of Peru;

2. "(b)" refers to the supply of a service in the territory of a Party by one person of that Party to a person of Peru;

3. "(c)" refers to the supply of a service in the territory of Peru by an investor of another Party or by a covered investment; and

4. "(d)" refers to the supply of a service by a national of a Party in the territory of Peru.

5. "None" means no limitations or conditions on the application of Article 10.5 (Market Access).

Existing Measures:

ANNEX II

SCHEDULE OF SINGAPORE

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure with respect to the supply of a service by the presence of natural persons.

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure in relation to the divestment of the administrator and operator of airports.

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to maintain or adopt any measure affecting the supply of the following services:

(a) social services;

(b) social security;

(d) ambulance services; and

(e) health services by government-owned or controlled healthcare institutions, such as hospitals and polyclinics, including investments in these institutions, hospitals and polyclinics.

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to maintain or adopt any measure affecting:

(a) the full or partial devolvement to the private sector of services provided in the exercise of governmental authority;

(b) the divestment of its equity interests in, and/or the assets of, an enterprise that is wholly owned by the Singapore government; and

(c) the divestment of its equity interests in, and/or the assets of, an enterprise that is partially owned by the Singapore government.

However, the right referred to in the preceding paragraph shall, in respect of measures affecting:

(i) subparagraph (a) (to the extent that the devolvement is accompanied by a divestment), and

(ii) subparagraphs (b) and (c), pertain only to the initial divestment and Singapore does not reserve this right with respect to subsequent divestments of such divested equity interests and/or assets.

Existing Measures:

Sector: Administration and Operation of National Electronic Systems

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure relating to or affecting the collection and administration of proprietary information by national electronic systems.

Existing Measures:

Sector: Arms and Explosives

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the arms and explosives sector.

Existing Measures: Arms and Explosives Act, Cap. 13, 2003 Rev Ed

Sector: Broadcasting Services

Broadcasting is defined as the transmission of signs or signals via any technology for the reception and/or display of aural and/or visual programme signals by all or part of the domestic public.

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Board of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting broadcasting services receivable by Singapore's domestic audience or originating from Singapore, including but not limited to:

(a) transmission quotas for content on television broadcasting services in Singapore;

(b) non-discriminatory expenditure requirements for Singapore production on television broadcasting services;

(d) spectrum management and licensing of broadcasting services; or

(e) subsidies or grants for investment involving Singapore subjects, persons and services.

This entry does not apply to:

(i) a service supplier of another Party, an investor of another Party, or a covered investment of an investor of another Party, in respect of measures affecting the supply of non-scheduled broadcasting services, to the extent that Singapore is bound to accord national treatment to that service supplier, investor or covered investment for non-scheduled broadcasting services under an agreement between Singapore and that Party, that was notified to the WTO Council for Trade in Services under Article V:7 of GATS prior to entry into force of this Agreement;

(ii) the sole activity of transmitting licensed broadcasting services to a final consumer;

(iii) the production, distribution and public display of motion pictures, video recordings and sound recordings. Commitments in the production, distribution and public display of motion pictures, video recordings and sound recordings shall not include all the broadcasting and audio-visual services and materials that are broadcasting-related.

Examples of services that are reserved include: free to-air broadcasting, cable and pay television; and

(iv) value-added network (VAN) services such as electronic-mail, voice-mail, online information and data-base retrieval, electronic data interchange, and online information and/or data processing.

Existing Measures:

Sector: Business Services

Sub-Sector: Patent agent services

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Description: Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the recognition of educational and professional qualifications for purposes such as admission, registration and qualification for patent agents.

Existing Measures: Patents Act, Cap. 221, 2005 Rev Ed

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting real estate. This includes, but is not limited to, measures affecting the ownership, sale, purchase, development and management of real estate.

This entry does not apply to real estate consultancy services, real estate agency services, real estate auction services, real estate valuation services, and renting or leasing services involving owned or leased non-residential property.

Existing Measures: Residential Property Act, Cap. 274, 2009 Rev Ed State Lands Act, Cap. 314, 1996 Rev Ed

Housing and Development Act, Cap. 129, 2004 Rev Ed

Jurong Town Corporation Act, Cap. 150, 1998 Rev Ed

Executive Condominium Housing Scheme Act, Cap. 99A, 1997 Rev Ed

Planning Act, Cap 232

Sector: Business Services

Sub-Sector: Scientific and technical consulting services

Industry Classification: CPC 8675 Engineering related scientific and technical consulting services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of the following services:

(a) geological, geophysical and other scientific prospecting services (CPC 86751);

(b) subsurface surveying services (CPC 86752);

(d) map making services (CPC 86754).

Existing Measures:

Sector: Business Services

Sub-Sector: Armed escort services and armoured car services Armed guard services

Industry Classification: CPC 87305 Guard Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the provision of armed escort, armoured car and armed guard services.

Existing Measures: Part IX of the Police Force Act, Cap. 235, 2006 Rev Ed

Sector: Business Services

Sub-Sector: Betting and gambling services

Industry Classification:

Obligations Concerned:

National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of betting and gambling services.

Existing Measures: Betting Act, Cap. 21, 2011 Rev Ed

Common Gaming Houses Act, Cap. 49, 1985 Rev Ed

Private Lotteries Act, Cap. 250

Sector: Business Services

Sub-Sector: Legal services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of legal services in the practice of Singapore law.

Existing Measures: Legal Profession Act, Cap. 161

Sector: Community, Personal and Social Services

Sub-Sector: Services furnished by trade unions

Industry Classification: CPC 952 Services furnished by trade unions

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting services provided by trade unions.

Existing Measures: Trade Unions Act, Cap. 333, 2004 Rev Ed

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Singapore reserves the right to adopt or maintain any measure in relation to the retention of a controlling interest by the Singapore Government in Singapore Technologies Engineering (the Company) or its successor body, including but not limited to controls over the appointment and termination of members of the Board of Directors, divestment of equity and dissolution of the Company.

Existing Measures:

Sector: Distribution, Publishing and Printing of Newspapers "Newspaper" means any publication containing news, intelligence, reports of occurrences, or any remarks, observations or comments, in relation to such news, intelligence, reports of occurrences, or to any other matter of public interest, printed in any language and published for sale or free distribution at regular intervals or otherwise, but does not include any publication published by or for the Government.

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the distribution, publishing and printing of newspapers, including but not limited to, shareholding limits and management control.

Existing Measures: Newspaper and Printing Presses Act, Cap. 206, 2002 Rev Ed

Sector: Trade Services

Sub-Sector: Distribution services

Commission agents' services

Wholesale trade services

Retailing services

Franchising

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of any products subject to import or export prohibition or non-automatic import or export licensing.

Singapore reserves the right to modify or increase the list of products stipulated in the laws, regulations and other measures governing Singapore's import or export prohibition or non automatic import or export licensing regime.

Existing Measures:

Sector: Educational Services

Sub-Sector: Primary education services

Secondary education services

Industry Classification: CPC 921 Primary Education Services

CPC 92210 General Secondary Education Services

CPC 92220 Higher Secondary Education Services (only applies to Junior colleges and pre-university centres under the Singapore educational system)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of primary, general secondary and higher secondary (only applies to junior colleges and pre-university centres under the Singapore educational system) education services for Singapore citizens, including Sports Education Services.

Existing Measures: Education Act, Cap. 87, 1985 Rev Ed Administrative Guidelines

Private Education Act, Cap. 247A, 2011 Rev Ed

Sector: Health and Social Services

Sub-Sector: Medical services

Pharmacy services Deliveries and related services, nursing services, physiotherapeutic and para-medical services, and allied health services Optometrists and opticians

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3)

Market Access (Article 10.5)

Description: Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any limit on the number of service suppliers providing, including but not limited to, the following services: medical services, pharmacy services, deliveries and related services, nursing services, physiotherapeutic and para-medical services, allied health services, and optometry and opticianry services.

Singapore reserves the right to adopt or maintain any measure with respect to the regulation of service suppliers providing, including but not limited to, the following services: medical services, pharmacy services, deliveries and related services, nursing services, physiotherapeutic and para-medical services, allied health services, and optometry and opticianry services.

Existing Measures: Allied Health Professions Act 2011

Sector: Sewage and Refuse Disposal, Sanitation and other Environmental Protection Services

Sub-Sector: Waste water management, including but not limited to collection, disposal and treatment of solid waste and waste water

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting waste water management, including but not limited to the collection, treatment and disposal of waste water.

Existing Measures: Code of Practice on Sewerage and Sanitary Works Sewerage and Drainage Act, Cap. 294, 2001 Rev Ed

Sector: Postal Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services:

Singapore reserves the right to adopt or maintain any measure relating to a Public Postal Licensee.

Existing Measures:

Sector: Telecommunications Services

Sub-Sector: Telecommunications services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure that accords treatment to persons of another Party equivalent to any measure adopted or maintained by that other Party limiting ownership by persons of Singapore enterprises engaged in the provision of public mobile and wireless communications in the territory of that other Party, including:

(a) Public Radiocommunication Services (Public Radiocommunication Services refer to Maritime and Aeronautical radiocommunication services);

(b) Public Cellular Mobile Telephone Service (PCMTS);

(d) Public Trunked Radio Services (PTRS);

(e) Public Mobile Data Services (PMDS);

(f) Public Mobile Broadband Multimedia Services; and

(g) Public Fixed-Wireless Broadband Multimedia Services.

Existing Measures:

Sector: Trade Services

Sub-Sector: Supply of potable water for human consumption

Industry Classification: CPC 18000 Natural Water

The sectors listed above apply only insofar as they relate to the supply of potable water

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of potable water.

For greater certainty, this entry does not affect the supply of bottled water.

Existing Measures: Public Utilities Act, Cap. 261, 2002 Rev Ed

Sector: Transport Services

Sub-Sector: Air transport services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting cross-border supply of:

(a) aircraft repair and maintenance services during which an aircraft is withdrawn from service, excluding so-called line maintenance;

(b) the selling and marketing of air transport services;

(d) airport operation services; and

(e) ground handling services.

Singapore reserves the right to adopt or maintain any measure affecting investments in air transport related services.

Existing Measures: Civil Aviation Authority of Singapore Act 2009

Sector: Specialty Air Services

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of specialty air services.

Existing Measures:

Sector : Transport Services

Sub-Sector: Land transport services – Passenger transport services, including but not limited to passenger transportation services by railway, urban and suburban regular transportation services, taxi services; bus and rail station services and ticketing services related to passenger transport services Passenger Transport Services are services which are used by and accessible to members of the public for the purposes of transporting themselves within Singapore.

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of passenger transport services.

Existing Measures: Rapid Transit Systems Act, Cap. 263A

Land Transport Authority of Singapore Act, Cap. 158A, 1996 Rev Ed

Public Transport Council Act, Cap. 259B, 2012 Rev Ed

Road Traffic Act, Cap. 276, 2004 Rev Ed

Sector: Transport Services

Sub-Sector: Land transport services – railway and road freight transportation Supporting services for railway and road transport services

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of land transport services as set out above.

This entry does not apply to:

(a) maintenance and repair services of motor vehicles (CPC 61120);

(b) maintenance and repair services of parts of motor vehicles (CPC 88**)2; and

Existing Measures:

Sector: Transport Services

Sub-Sector: Services auxiliary to all modes of transport

Industry Classification: CPC 742 Storage and warehousing services

CPC 742** Container station and depot services

CPC 748 Freight transport agency services

CPC 7123** Inland trucking services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure that accords equivalent treatment to storage and warehousing, freight forwarding, inland trucking, container station and depot services of another Party.

Existing Measures:

Sector: Transport Services

Sub-Sector: Maritime transport services – Towing and tug assistance; provisioning, fuelling and watering; garbage collection and ballast waste disposal; port captain's services; navigation aids; emergency repair facilities; anchorage; and other shore-based operational services essential to ship operations, including communications, water and electrical supplies.

Industry Classification: CPC 74510 Port and Waterway Operation Services

CPC 74520 Pilotage and Berthing Services

CPC 74530 Navigation Aid Services

CPC 74590 Other Supporting Services for Water Transport

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of towing and tug assistance; provisioning, fuelling and watering; garbage collection and ballast waste disposal; port captain's services; navigation aids; emergency repair facilities; anchorage; and other shore-based operational services essential to ship operations, including communications, water and electrical supplies.

For greater certainty, no measures shall be applied which deny international maritime transport operators reasonable and non discriminatory access to the above port services.

This entry does not apply to:

(a) international transport (freight and passengers) excluding cabotage transport (CPC 7211**, 7212**);

(b) international towage (CPC 7214**);

(d) other supporting and auxiliary services (including catering) (CPC 749**).

Existing Measures: Maritime and Port of Singapore Act, Cap. 170A, Section 41 (Part VIII)

Sector: Transport Services

Sub-Sector: Transportation services via pipeline

Industry Classification: Transportation of goods via pipeline of goods such as chemical and petroleum products and petroleum, and other related products

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Only service suppliers with a local presence shall be allowed to provide transportation services via pipeline of goods such as chemical and petroleum products and petroleum, and other related products.

Singapore reserves the right and flexibility to modify or increase the list of the chemical and petroleum products, and other related products that are subject to this entry.

Existing Measures: Administrative

Sector: Trade Services

Sub-Sector: Wholesale trade services and retail trade services of alcoholic beverages and tobacco

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure affecting the supply of wholesale and retail trade services of tobacco products and alcoholic beverages.

Existing Measures:

Sector: Energy

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross Border Trade in Services

Singapore reserves the right to adopt or maintain any measure in order to prohibit, manage or control the generation, use, distribution and retail of nuclear energy, including setting conditions for natural persons or juridical persons to do so.

Existing Measures:

Sector: All

Sub-Sector:

Industry Classification:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Singapore reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

Singapore reserves the right to adopt or maintain any measure that accords differential treatment to ASEAN member states under any ASEAN agreement open to participation by any ASEAN member state, in force or signed after the date of entry into force of this Agreement.

Singapore reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation matters;

(b) maritime matters and services auxiliary to maritime matters;

(d) land transport matters; and

(e) telecommunication matters.

Existing Measures:

ANNEX II

SCHEDULE OF THE UNITED STATES

Sector: Communications

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

The United States reserves the right to:

(a) adopt or maintain any measure that accords differential treatment to persons of other countries due to application of reciprocity measures or through international agreements involving sharing of the radio spectrum, guaranteeing market access, or national treatment with respect to the one-way satellite transmission of direct-to-home (DTH) and direct broadcasting satellite (DBS) television services and digital audio services; and

(b) prohibit a person of a Party from offering DTH or DBS television and digital audio services into the territory of the United States unless that person establishes that the Party of which it is a person:

(i) permits U.S. persons to obtain a licence for such service in that Party in similar circumstances; and

(ii) treats the supply of audio or video content originating in the Party no more favourably than the supply of audio or video content originating in a non-Party or any other Party.

Sector: Communications – Cable Television

Obligations Concerned: National Treatment (Article 9.4)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

The United States reserves the right to adopt or maintain any measure that prohibits a person of a Party from owning or operating a cable television system in the territory of the United States unless that person establishes that the Party:

(a) permits U.S. persons to own or operate such systems in the territory of the Party under similar circumstances; and

(b) treats the supply of video content originating in the Party no more favourably than the supply of content of any other Party or non-Party.

A measure may be deemed to treat content of a Party more favourably if it applies preferential treatment on the basis that the director, producer, publisher, actors or owner of such content is a person of that Party, or the production, editing or distribution of such content took place in the territory of that Party, or on any other basis that affords protection to local production.

Sector: Social Services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

The United States reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health and child care.

Sector: Minority Affairs

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

The United States reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities, including corporations organised under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act.

Existing Measures: Alaska Native Claims Settlement Act, 43 U.S.C. 1601 et seq.

Sector: Transportation

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

1. The United States reserves the right to adopt or maintain any measure relating to the provision of maritime transportation services and the operation of U.S.-flagged vessels, including the following:

(a) requirements for investment in, ownership and control of, and operation of vessels and other marine structures, including drill rigs, in maritime cabotage services, including maritime cabotage services performed in the domestic offshore trades, the coastwise trades, U.S. territorial waters, waters above the continental shelf, and in the inland waterways;

(b) requirements for investment in, ownership and control of, and operation of U.S.-flagged vessels in foreign trades;

(c) requirements for investment in, ownership or control of, and operation of vessels engaged in fishing and related activities in U.S. territorial waters and the Exclusive Economic Zone;

(d) requirements related to documenting a vessel under the U.S. flag;

(e) promotional programmes, including tax benefits, available for shipowners, operators, and vessels meeting certain requirements;

(f) certification, licensing and citizenship requirements for crew members on U.S.-flagged vessels;

(g) manning requirements for U.S.-flagged vessels;

(h) all matters under the jurisdiction of the Federal Maritime Commission;

(i) negotiation and implementation of bilateral and other international maritime agreements and understandings;

(j) limitations on longshore work performed by crew members;

(k) tonnage duties and light money assessments for entering U.S. waters; and

(l) certification, licensing and citizenship requirements for pilots performing pilotage services in U.S. territorial waters.

2. The following activities are not included in this entry. However, the treatment provided to a Party in (b) is conditional upon obtaining comparable market access in these sectors from that Party:

(a) vessel construction and repair; and

(b) landside aspects of port activities, including operation and maintenance of docks; loading and unloading of vessels directly to or from land; marine cargo handling; operation and maintenance of piers; ship cleaning; stevedoring; transfer of cargo between vessels and trucks, trains, pipelines and wharves; waterfront terminal operations; boat cleaning; canal operation; dismantling of vessels; operation of marine railways for drydocking; marine surveyors, except cargo; marine wrecking of vessels for scrap; and ship classification societies.

Existing Measures: Merchant Marine Act of 1920, §§ 19 and 27, 46 U.S.C. 12101, 12118, 12120, 12132, 12139, 12151, 42101-42109, 55102, 55105-55110, 55115-55119, 58108

Jones Act Waiver Statute, 46 U.S.C. 501

Shipping Act of 1916, 46 U.S.C. 50501, 56101, 57109, 50111

Merchant Marine Act of 1936, 46 U.S.C. 109, 114, 50111, 50501, 53101 note, 53301-53312, 53501-53517, 53701-53718, 53721-53725, 53731-53735, 55304-55305, 57101-57104, 57301-57308

Merchant Ship Sales Act of 1946, 50 U.S.C. App. 1738 46 U.S.C. 55109, 55111, 55118, 60301-60302, 60304-60306, 60312, 80104 46 U.S.C. 12101 et seq., 12112, 12121, and 31301 et seq. 46 U.S.C. 8904

Passenger Vessel Services Act, 46 U.S.C. 55103

42 U.S.C. 9601 et seq.; 33 U.S.C. 2701 et seq.; 33 U.S.C. 1251 et seq.

46 U.S.C. 3301 et seq., 3701 et seq., 8103, and 12107(b)

The Foreign Shipping Practices Act of 1988, 46 U.S.C. 306, 41108, 42101, 42301-42307

Merchant Marine Act, 1920, 46 U.S.C. 50101, 50302, 53101 note, 57108

Shipping Act of 1984, 46 U.S.C. 305-306, 40101 note, 40101- 40104, 40301-40307, 40501-40503, 40701-40706, 40901- 40904, 41101-41109, 41301-41309, 42101, 42301-42307

Exports of Alaskan North Slope Oil, 104 Pub. L. 58, Title II; 109 Stat. 557, 560-63; codified at 30 U.S.C. 185(s), 185 note Limitations on performance of longshore work by alien crewmen, 8 U.S.C. 1288

Maritime Transportation Security Act of 2002, Pub. L. 107-295, § 404; 116 Stat. 2064, 2114-15, codified at 46 U.S.C. 55112 Nicholson Act, 46 U.S.C. 55114

Commercial Fishing Industry Vessel Anti-Reflagging Act of 1987, Pub. L. 100-239; 101 Stat. 1778, codified in part at 46 U.S.C. 108, 2101, 2101 note, 12113 43 U.S.C. 1841 22 U.S.C. 1980

46 U.S.C. 9302, 46 U.S.C. 8502; Agreement Governing the Operation of Pilotage on the Great Lakes, Exchange of Notes at Ottawa, August 23, 1978, and March 29, 1979, TIAS 9445

Magnuson Fishery Conservation and Management Act, 16 U.S.C. 1801 et seq. 19 U.S.C. 1466

North Pacific Anadromous Stocks Act of 1992, Pub. L. 102-567; Oceans Act of 1992, Pub. L. 102-587

Tuna Convention Act, 16 U.S.C. 951 et seq.

South Pacific Tuna Act of 1988, 16 U.S.C. 973 et seq. Northern Pacific Halibut Act of 1982, 16 U.S.C. 773 et seq. Atlantic Tunas Convention Act, 16 U.S.C. 971 et seq. Antarctic Marine Living Resources Convention Act of 1984, 16 U.S.C. 2431 et seq.

Pacific Salmon Treaty Act of 1985, 16 U.S.C. 3631 et seq.

American Fisheries Act, 46 U.S.C. 12113 and 46 U.S.C. 31322

Sector: Services Related to Air Transportation

Obligations Concerned: National Treatment (Article 10.3)

Most-Favoured-Nation Treatment (Article 10.4)

Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

The United States reserves the right to adopt or maintain any measure relating to the cross-border supply of airport operation services, computer reservation system services, ground handling services, and selling and marketing of air transport services, as defined in Article 10.1 (Definitions).

Existing Measures: International Air Transportation Fair Competitive Practices Act of 1974, as amended

Sector: Betting and Gambling

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Market Access (Article 10.5)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

The United States reserves the right to adopt or maintain any measure relating to betting and gambling services.

Sector: All

Obligations Concerned: Market Access (Article 10.5)

Description: Cross-Border Trade in Services

The United States reserves the right to adopt or maintain any measure that is not inconsistent with the United States' obligations under Article XVI of GATS as set out in the U.S. Schedule of Specific Commitments under GATS (GATS/SC/90, GATS/SC/90/Suppl.1, GATS/SC/90/Suppl.2, and GATS/SC/90/Suppl.3).

For the purposes of this entry only, the U.S. Schedule of Specific Commitments is modified as indicated in Appendix II A.

Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

The United States reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.

The United States reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) aviation;

(b) fisheries;

(d) launch of satellites in the international commercial space launch market.

Appendix II-A

For the following Sectors, U.S. obligations under Article XVI of GATS as set out in the U.S. Schedule of Specific Commitments under GATS (GATS/SC/90, GATS/SC/90/Suppl.1, GATS/SC/90/Suppl.2, and GATS/SC/90/Suppl.3) are improved as described.

ANNEX II

SCHEDULE OF VIET NAM

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure conferring rights or privileges to socially, economically and geographically disadvantaged minorities and ethnic groups.

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to limit the transfer or disposal of any interest held in an existing state enterprise to nationals of Viet Nam. This entry pertains only to the initial transfer or disposal of such interest. Viet Nam does not reserve this right with respect to subsequent transfers or disposals of such interest to nationals of Parties on the date hereof, subject to any limitation found in Viet Nam's Annex I and Annex II.

Where Viet Nam transfers or disposes of an interest in an existing state enterprise in multiple phases, the preceding paragraph shall apply separately to each such phase.

Existing Measures: Law No. 59/2005/QH11 on Investment dated 29 November 2005

Law No. 60/2005/QH11 on Enterprise dated 29 November 2005

Decree No.108/2006/ND-CP dated 22 September 2006

Decree No. 139/2007/ND-CP dated 5 September 2007

Sector: All

Sub-Sector:

Obligations concerned: National Treatment (Article 9.4)

Description: Investment

The level of equity purchased on the Vietnamese stock exchange by foreign investors is subject to any equity limitations set forth in this Annex and Viet Nam's Annex I.

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure relating to land ownership.

Existing Measures: Law No. 45/2013/QH13 on Land dated 29 November 2013 and its implementing regulations.

Sector: All

Sub-Sector:

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure that accords differential treatment:

(a) to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement; and

(b) to ASEAN Member States under any ASEAN agreement open to participation by any ASEAN Member State, in force or signed after the date of entry into force of this Agreement.

Viet Nam reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:

(a) maritime matters, including salvage;

(b) fisheries; and

Existing Measures:

Sector: Transport Services

Sub-Sector: Air-transport related services

Obligations Concerned: National Treatment (Article 9.4 and 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to:

(a) specialty air services (except for commercial flight training);

(b) ground handling; and

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure regarding assistance to small and medium-sized enterprises in production site selection and related regulatory matters, human resource training, providing research assistance and information on technology and equipment, legal assistance, and providing marketing assistance and promotional information.

Existing Measures: Decree No. 56/2009/ND-CP dated 30 June 2009

Sector: River Ports, Sea Ports and Airports Construction, operation and management

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to the construction, operation and management of river ports, sea ports and airports.

This entry shall not be invoked to nullify the commitments set out in Viet Nam's Annex I.

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to the establishment and operation of co operatives, union of co-operatives, household business and sole-proprietorship.

Existing Measures:

Sector: Agriculture

Sub-Sector: Cultivating, producing or processing rare or precious plants, breeding or husbandry of precious or rare wild animal and processing of those plants or animals (including both living animals and processed matter taken from animals)3

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure relating to investment in the above mentioned sector and sub sectors.

Existing Measures:

Sector: Distribution Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Description: Investment and Cross-Border Trade in Services

1. Viet Nam reserves the right to adopt or maintain any measure in regard of cross-border trade in:

(a) commission agents' services (CPC 621, 61111, 6113, 6121);

(b) wholesale trade services (CPC 622, 61111, 6113, 6121); and

(c) retailing services (CPC 631 and 632, 61112, 6113, 6121), regarding the distribution of products other than products for personal use and legitimate computer software for personal and commercial use.

2. Notwithstanding the above, with respect to the distribution of the following products covered by CPC 621, 622 and 632, Viet Nam reserves the right to adopt or maintain any measure in regard of cross-border trade in services and investment regarding cigarettes and cigars, publications, precious metals and stones, pharmaceutical products and drugs, explosives, processed oil and crude oil.

Existing Measures: Law on Trade No. 36/2005/QH11 dated 14 June 2005

Decree No. 23/2007/ND-CP dated 12 February 2007

Revised Publishing Law No. 19/2012/QH13

Amendment and Supplement to Publishing Law No 12/2008/QH12 dated 3 June 2008

Decree No. 11/2009/ND-CP dated 10 February 2009

Decree No. 110/2010/ND-CP dated 6 November 2010

Circular N006F 02/2010/TT-BTTTT dated 11 January 2010

Sector: Telecommunication services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to investment in, building of, operating and exploiting telecommunication networks and services serving ethnic minorities in rural and remote areas of Viet Nam.

Existing Measures:

Sector: Audio-visual Services

Sub-Sector: Sound recording

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to sound recording services except that it shall permit foreign ownership of up to 51 per cent in enterprises engaged in sound recording.

Existing Measures:

Sector: Educational Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to investment in secondary education services.

This entry shall not be invoked to nullify the commitments set out in Viet Nam's Annex I.

Existing Measures:

Sector: Educational Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to investment in and the supply of primary education services.

This entry shall not be invoked to nullify the commitments set out in Viet Nam's Annex I.

Existing Measures:

Sector: Performing Arts and Fine Arts

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure to grant preferential treatment to Vietnamese artists and Vietnamese-owned companies in the performing arts, fine arts and other cultural activities.

Existing Measures:

Sector: Cultural Heritage

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure to protect, maintain and renovate Viet Nam's tangible heritages as defined in the Law on Cultural Heritage (2001) and the revised Law on Cultural Heritage (2009) and intangible cultural heritages as covered by the revised Law on Cultural Heritage (2009).

Existing Measures: Law No.28/2001/QH10 on Cultural Heritage dated 29 June 2001 and Law No. 32/2009/QH12 amending and supplementing a number of articles of the Law on Cultural Heritage dated 19 June 2009

Sector: Mass Communication

Sub-Sector: Press and news-gathering agencies, publishing, radio and television broadcasting, in any form

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to the sub-sectors listed above, including regulating activities in these sub-sectors in accordance with Viet Nam's laws and regulations.

For greater certainty, the absence of a reservation against the cross-border services obligations does not preclude Viet Nam from ensuring that the cross-border supply of the listed sub sectors complies with Viet Nam's laws and regulations, including applicable registration and licensing requirements.

Existing Measures:

Sector: Production and Distribution of Video Records

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure in respect of investment in the production and distribution of video records on whatever medium.

Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure in respect of the distribution of video records on whatever medium.

Existing Measures:

Sector: Audio-visual Services

Sub-Sector: Production, distribution, and projection of television programmes and cinematographic works

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain subsidies inconsistent with Article 9.10.2 (Performance Requirements) for audio-visual services and preferential treatment to television programmes and cinematographic works produced under co production agreements.

Existing Measures:

Sector: Power Development

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to hydroelectricity and nuclear power.

Existing Measures:

Sector: Business Services

Sub-Sector: Printing (CPC 88442)

Public opinion polling (CPC 864)

Investigation and security, excluding security system services (part of CPC 873)

Technical testing and analysis services (CPC 8676): conformity testing of means of transport and certification of transport vehicles Arbitration and conciliation services (CPC 86602), excluding arbitration and conciliation services for commercial disputes between businesses Placement and supply services of personnel (CPC 872)

Services incidental to fishing (CPC 882), excluding specialised consultancy services related to marine or freshwater fisheries, fish hatchery services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to the above mentioned sub-sectors.

Existing Measures:

Sector: Tourism and Travel-related Services

Sub-Sector: Tourist guides services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to tourist guides services.

Existing Measures:

Sector: Health and Social Services

Sub-Sector: Residential health facilities services other than hospital services (CPC 93193)

Other human health services (CPC 93199)

Social services (CPC 933)

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to the listed sub-sectors.

Existing Measures:

Sector: Recreational, Cultural and Sporting Services

Sub-Sector: Sporting and other recreational services, excluding electronic games business

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to martial art clubs and extreme sports.

Existing Measures:

Sector: Transport Services

Sub-Sector: Maritime cabotage services

Internal waterway transport: cabotage services, rental of vessels with crew (CPC 7223)

Space transport

Pipeline transport

Rail transport (cabotage services, infrastructure business services)

Road cabotage services

Pushing and towing services

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to the above mentioned sub-sectors.

Existing Measures:

Sector: Manufacturing

Sub-Sector: Paper production

Manufacturing and assembling of buses and transport vehicles of more than 29 seats

Obligations Concerned: National Treatment (Article 9.4)

Performance Requirements (Article 9.10)

Description: Investment

Viet Nam reserves the right to adopt or maintain measures inconsistent with Article 9.10.1(h) (Performance Requirements) for foreign-invested enterprises in the above sub-sectors.

Existing Measures: Decision No.17/2004/QD-BCN dated 8 March 2004 Decision No.22/2005/QD-BCN dated 26 April 2005

Decision No.36/2007/QD-BCN dated 6 August 2007

Decision No.07/2007/QD-BCN dated 30 January 2007

Decision No.177/2004/QD-TTg dated 5 October 2004

Decision No.147/QD-TTg dated 4 September 2007

Decision No.36/2007/QD-BCN dated 6 August 2007

Decision No.249/QD-TTg dated 10 October 2005

Decree No.80/2006/ND-CP dated 9 August 2006

Decree No.12/2006/ND-CP dated 23 January 2006

Sector: Fishery

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure in relation to fishery activities within Viet Nam's sovereignty, and jurisdictional waters as defined in accordance with the United Nations Convention on the Law of the Sea.

No investment licence shall be issued to foreign investors for:

(a) fresh-water fishing, marine fishing; and

(b) coral and natural pearl exploitation.

Existing Measures: Law No. 59/2005/QH11 on Investment dated 29 November 2005

Law No. 17/2003/QH11 on Fishery dated 26 November 2003

Decree No.108/2006/ND-CP dated 22 September 2006

Decree No.49/1998/ ND-CP dated 13 July 1998

Decree No.86/2001/ND-CP dated 16 November 2001

Decree No.191/2004/ND-CP dated 18 November 2004

Decree No.59/2005/ND-CP dated 4 May 2005

Decision No.10/2007/QD-TTg dated 11 January 2006

Circular No.02/2005/TT-BTS dated 4 May 2005

Circular No.62/2008/TT-BNN dated 20 May 2008

Decree No.32/2010/ND-BNN dated 30 March 2010

Sector: Forestry and Hunting

Sub-Sector: Forestry and hunting (excluding CPC 881)

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure relating to investment in forestry and hunting activities.

Existing Measures: Resolution No.71/2006/QH11 dated 29 November 2006

Law No.29/2004/QH11 on Protection and Development of Forest dated 3 December 2004

Decree No.23/2006/QD-TTg dated 3 March 2006

Sector: Traditional Markets

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to traditional markets.

Existing Measures:

Sector: Commodity Exchange

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to the establishment and management of commodity exchanges.

Existing Measures:

Sector: Judicial Administration and related services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4)

Most-Favoured-Nation Treatment (Article 9.5)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Description: Investment

Viet Nam reserves the right to adopt or maintain any measure with respect to:

(a) judicial expertise services;

(b) bailiff services;

(d) notary and certification services; and

(e) proper managing and liquidating according to the regulations of the law on bankruptcy.

Existing Measures:

Sector: Lottery, Betting and Gambling Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure with respect to lottery, betting and gambling services.

Existing Measures:

Sector: Professional Services

Sub-Sector: Accounting and book-keeping services

Taxation services

Obligations Concerned: Local Presence (Article 10.6)

Description: Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure that is not consistent with Article 10.6 (Local Presence) in cross border trade in services in accounting, book-keeping and taxation services.

Existing Measures:

Sector: All

Sub-Sector:

Obligations Concerned: Market Access (Article 10.5)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure that is not inconsistent with Viet Nam's obligations under Article XVI of GATS.

For the purposes of this entry, Viet Nam's Schedule of Specific Commitments is modified as set out in Appendix II-A.

Existing Measures:

Sector: Services in the exercise of governmental authority

Sub-Sector:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)

Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)

Performance Requirements (Article 9.10)

Senior Management and Boards of Directors (Article 9.11)

Local Presence (Article 10.6)

Description: Investment and Cross-Border Trade in Services

Viet Nam reserves the right to adopt or maintain any measure relating to services in the exercise of governmental authority when these services are opened to the private sector.

For the purposes of this entry, any non-conforming measure adopted after the opening of such services to the private sector shall be deemed to be an existing measure subject to Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non Conforming Measures) five years after the adoption of the measure.

Existing Measures:

Appendix II-A

For the purposes of entry at Annex II – Viet Nam – 36, Viet Nam's obligations under Article XVI of GATS as set out in Viet Nam's Schedule of Specific Commitments in Services under the GATS (WT/ACC/VNM/48/Add.2) are improved in the following sectors as described below.

Annex III-Financial Services Non-Conforming Measures

ANNEX III

EXPLANATORY NOTES

1. The Schedule of a Party to this Annex sets out:

(a) headnotes or introductory notes that limit or clarify the commitments of a Party with respect to the obligations described in paragraphs 1(b) and 1(c);

(b) in Section A, pursuant to Article 11.10.1 (Non-Conforming Measures), a Party's existing measures that are not subject to some or all of the obligations imposed by:

(i) Article 11.3 (National Treatment);

(ii) Article 11.4 (Most-Favoured-Nation Treatment);

(iii) Article 11.5 (Market Access for Financial Institutions);

(iv) Article 11.6 (Cross-Border Trade); or

(v) Article 11.9 (Senior Management and Boards of Directors); and

(c) in Section B, pursuant to Article 11.10.2 (Non-Conforming Measures), the specific sectors, subsectors or activities for which a Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(i) Article 11.3 (National Treatment);

(ii) Article 11.4 (Most-Favoured-Nation Treatment);

(iii) Article 11.5 (Market Access for Financial Institutions);

(iv) Article 11.6 (Cross-Border Trade); or

(v) Article 11.9 (Senior Management and Boards of Directors).

2. Each Schedule entry in Section A sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Sub-Sector, where referenced, refers to the specific subsector for which the entry is made;

(c) Obligations Concerned specifies the obligations referred to in paragraph 1(b) that, pursuant to Article 11.10.1(a) (Non-Conforming Measures), do not apply to the listed measures as indicated in the headnote or introductory note for each Party's Schedule;

(d) Level of Government indicates the level of government maintaining the listed measures;

(e) Measures identifies the laws, regulations or other measures for which the entry is made. A measure cited in the Measures element:

(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement; and

(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and

(f) Description, as indicated in the headnote or introductory note for each Party's Schedule, either sets out the non-conforming measure or provides a general non-binding description of the measure for which the entry is made.

3. Each Schedule entry in Section B sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Sub-Sector, where referenced, refers to the specific subsector for which the entry is made;

(c) Obligations Concerned specifies the obligations referred to in paragraph 1(c) that, pursuant to Article 11.10.2 (Non-Conforming Measures), do not apply to the sectors, subsectors or activities listed in the entry;

(d) Level of Government indicates the level of government maintaining the listed measures;

(e) Description sets out the scope or nature of the sectors, subsectors or activities covered by the entry to which the reservation applies; and

(f) Existing Measures identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors or activities covered by the entry.

4. Parties recognise that measures falling under exceptions applicable to this Chapter, such as those in Article 11.11 (Exceptions), need not be scheduled. Nevertheless, some Parties have listed measures that may fall within applicable exceptions. For greater certainty, the listing of a measure in a Party's Schedule to Annex III is without prejudice to whether that measure or any other measure:

(a) adopted or maintained by the Party; or

(b) adopted or maintained by any other Party;

is covered by exceptions such as those in Article 11.11 (Exceptions).

ANNEX III

SCHEDULE OF AUSTRALIA

HEADNOTES

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. To clarify Australia's commitment with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of Australia are subject to non-discriminatory limitations on juridical form.

3. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to non-conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

4. Description sets out the non-conforming measure for which the entry is made.

5. For Section A of this Schedule, in accordance with Article 11.10.1 (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the non-conforming measures identified in the Description element of that entry.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Banking Act 1959 (Cth)

Payment Systems (Regulation) Act 1998 (Cth)

Description: A branch of a foreign bank that is authorised as a deposit taking institution in Australia (foreign ADI) is not permitted to accept initial deposits (and other funds) from individuals and non-corporate institutions of less than $A250,000.

A representative office of a foreign bank is not permitted to undertake any banking business, including advertising for deposits, in Australia. Such a representative office is only permitted to act as a liaison point.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9) Level of Government: Central

Measures: Corporations Act 2001 (Cth)

Corporations Regulations 2001 (Cth)

Description: At least one director of a private company must be ordinarily resident in Australia.

At least two directors of a public company must be ordinarily resident in Australia.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Regional

Measures: All existing non-conforming measures at the regional level of government.

Description: All existing non-conforming measures at the regional level of government.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Commonwealth Banks Act 1959 (Cth)

Description: Liabilities of the Commonwealth Bank, previously Commonwealth Government-owned, are covered by transitional guarantee arrangements.

Sector: Financial Services

Sub-Sector: Life insurance services

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Life Insurance Act 1995 (Cth)

Description: Approval of non-resident life insurers is restricted to subsidiaries incorporated under Australian law.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central and regional

Description: Australia reserves the right to adopt or maintain any measure with respect to the guarantee by government of government owned entities whose operations include the provision of financial services, including guarantees related to the privatisation of such entities.

ANNEX III

SCHEDULE OF BRUNEI DARUSSALAM

HEADNOTES

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. To clarify Brunei Darussalam's commitment with respect to Article 11.5(b) (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws, regulations and guidelines of Brunei Darussalam are subject to non-discriminatory limitations on juridical form.

3. All financial institutions offering Islamic financial products and services shall be subject to the Syariah requirements as determined by the laws of Brunei Darussalam and any supervisory bodies for the control of the administration and business dealings of financial institutions concerning Islamic products and any matters connected thereto.

4. Description sets out the non-conforming measure for which the entry is made.

5. For entries in Section A, in accordance with Article 11.10.1(a) (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the non-conforming measures identified in the Description element of that entry.

6. For entries in Section B, in accordance with Article 11.10.2 (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the sectors, subsectors and activities identified in the Description element of that entry.

7. Brunei Darussalam reserves the right to require a foreign bank branch that is systemically important to be a locally incorporated bank in Brunei Darussalam, subject to the following prerequisites:

(a) such measure is imposed in a reasonable, objective and impartial manner;

(b) Brunei Darussalam shall take in due consideration the quality of home regulation and supervision over the bank, degree of protection accorded to depositors in the home country with respect to depositors in Brunei Darussalam, and the amount of assets held in Brunei Darussalam;

(c) prior to the imposition of the requirement, the bank and the Party where the bank originates from shall be notified at least six months in advance of Brunei Darussalam's intention to locally incorporate the bank;

(d) Brunei Darussalam shall engage the Party concerned in consultations regarding the requirement and provide due consideration to the views expressed by the Party concerned in this regard; and

(e) provide considerable duration for the bank to comply with the requirement.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Finance companies

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures: Finance Companies Act (Chapter 89)

Description: A finance company must be established as a company incorporated in Brunei Darussalam.

Sector: Financial Services

Sub-Sector: Money-changing and remittance businesses

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Money-Changing and Remittance Businesses Act (Chapter 174)

Description: Only Bruneian citizens are allowed to carry on money changing and money remittance businesses.

There is a limit to the number of licences awarded for these businesses.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Motor Vehicles Insurance (Third Party Risks) Act (Chapter 90)

Workmen's Compensation Act (Chapter 74)

Description: Compulsory insurance of motor third party liability and workmen's compensation can only be purchased directly or through an intermediary from licensed insurance companies or takaful operators in Brunei Darussalam.

Sector: Financial Services

Sub-Sector: Insurance intermediaries

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Insurance Order, 2006

Takaful Order, 2008

Companies Act (Chapter 39)

Business Names Act (Chapter 92)

Description: 1. Insurance agents

Only Brunei nationals are allowed to be registered as an insurance agent in Brunei Darussalam.

2. Insurance brokers

Insurance brokers must be established as a company incorporated in Brunei Darussalam.

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Banking Order, 2006

Islamic Banking Order, 2008

Outsourcing Guidelines

Description: Any outsourcing activities by licensed banks in Brunei Darussalam are subject to approval by Autoriti Monetari Brunei Darussalam with the following conditions:

(a) the outsourced activities are not related to credit assessment, processing, administration or any related core banking activities; and

(b) the outsourcing activities will not affect financial institutions' human capital and do not involve any retrenchment of local employees.

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned:

National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Banking Order, 2006

Islamic Banking Order, 2008

Description: Autoriti Monetari Brunei Darussalam has absolute discretion not to grant a licence to a bank if it is satisfied that:

(a) the bank is closely linked to any person who is subject to any laws of any jurisdiction outside Brunei Darussalam or administrative provisions that would prevent the effective exercise by the Autoriti Monetari Brunei Darussalam of its supervisory functions in relation to the bank; or

(b) 50 per cent or more of its capital issued and paid-up is owned by or on behalf of a foreign government, or that all or a majority of the persons having the direction, control or management of the bank are appointed by or on behalf of any such government or agency.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9) Level of Government: Central

Measures: Description:

Syariah Financial Supervisory Order, 2006

Islamic Banking Order, 2008

Financial institutions providing Islamic finance services are required to include Brunei nationals on their Syariah Advisory Board.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Capital market

Clearing and settlement services

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Services (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Description: Brunei Darussalam reserves the right to limit the establishment or operation of the following:

(a) clearing and settlement services;

(b) central securities depository;

(d) trading facilities;

(e) credit rating agencies;

(f) exchanges; or

(g) securities and futures market.

For greater certainty, this reservation does not apply to financial institutions participating in, or seeking to participate in, any such exchange or securities market.

Existing Measures: Autoriti Monetari Brunei Darussalam Order, 2010

Securities Markets Order, 2013

Payment and Settlement Systems (Oversight) Order, 2015

Sector: Financial Services

Sub-Sector: Credit reporting services

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Brunei Darussalam reserves the right to adopt or maintain any measure relating to the establishment and operation of credit reporting services.

Existing Measures: Autoriti Monetari Brunei Darussalam Order, 2010

Banking Order, 2006

Islamic Banking Order, 2008

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Description: Brunei Darussalam reserves the right to provide advantages to locally incorporated banks that are not available to licensed foreign bank branches such as, and not limited to, the following:

(a) number of branch locations; and

(b) types of banking business offered.

Existing Measures: Banking Order, 2006

Islamic Banking Order, 2008

Sector: Financial Services

Sub-sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description:

(a) Brunei Darussalam reserves the right to provide subsidies or grant advantages not limited to the following:

(i) to government-owned or government-controlled entities for legitimate national economic development objectives; and

(ii) to Islamic financial institutions carrying out Islamic banking, takaful or retakaful, and Islamic capital markets, for the purpose of Islamic finance development.

(b) With respect to the Small and Medium Enterprises Financing Programme, Brunei Darussalam reserves the right to provide preferences to local financial institutions which may not be opened to foreign financial institutions.

Existing Measures:

ANNEX III

SCHEDULE OF CANADA

INTRODUCTORY NOTES

1. For Canada, in the interpretation of a reservation in Section A, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken. To the extent that:

(a) the Measures element is qualified by a specific reference in the Description element, the Measures element as so qualified shall prevail over all other elements; and

2. For Canada, in the interpretation of a reservation in Section B, all elements of the reservation shall be considered. The Description element shall prevail over all other elements.

HEADNOTES

1. Commitments under this Agreement, in the subsectors listed in this Schedule, are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. To clarify Canada's commitment with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of Canada are subject to non-discriminatory limitations on juridical form.

3. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to non-conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

4. For greater certainty, limitations on the participation of foreign capital in terms of maximum percentage limits on foreign shareholding or the total value of individual or aggregate foreign investment should not be considered a limitation to Article 11.5 (Market Access for Financial Institutions).

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Bank Act s. 159, 749

Insurance Companies Act s. 167, 796

Trust and Loan Companies Act s. 163

Foreign Institutions Subject to the Canadian Residency

Requirements Regulations (Insurance Companies)

Foreign Institutions Subject to the Canadian Residency

Requirements Regulations (Trust and Loan Companies)

Cooperative Credit Association Act s. 169

Description: A minimum of one-half of the directors of a federally-regulated financial institution that is a subsidiary of a foreign institution and a majority of the directors of any other federally-regulated financial institution must be either Canadian citizens ordinarily resident in Canada or permanent residents ordinarily resident in Canada.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Bank Act s. 524

Description: In order to establish a bank branch, a foreign bank must be a bank in the jurisdiction under whose laws it is incorporated.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Bank Act s. 520, 524, 540, 545

Sales or Trades (Authorized Foreign Banks) Regulations

Description: A foreign bank must establish a subsidiary as a condition for accepting retail deposits. Foreign lending branches may not accept deposits.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures: Trust and Loan Companies Act

Bank Act

Cooperative Credit Associations Act

Insurance Companies Act

Description: Federal laws do not permit a trust and loan company, credit union or fraternal benefit society in Canada to be established through branches of corporations organised under a foreign country's law.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures: Bank Act s. 510, 522.16, 524

Insurance Companies Act s. 574, 581

Description: A bank branch must be established directly under the authorised foreign bank incorporated in the jurisdiction where the authorised foreign bank principally carries on business.

A foreign entity authorised to insure, in Canada, risks must be established directly under the foreign insurance company incorporated in the jurisdiction where the foreign insurance company, either directly or through a subsidiary, principally carries on business.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Bank Act s. 520, 540, 545

Bank Act sch. I, II

Canadian Deposit Insurance Corporation Act s. 2, 8, 17

Description: Full service foreign bank branches and lending foreign bank branches are prohibited from becoming member institutions of the Canadian Deposit Insurance Corporation.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Canadian Payments Act s. 2, 4

Bank Act s. 524, 540

Description: Lending branches of foreign banks are prohibited from being members of the Canadian Payments Association.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Cross-Border Trade (Article 11.6)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Regional

Measures: -

Description: All existing non-conforming measures of all provinces and territories.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Regional

Description: Canada reserves the right to adopt or maintain any measure that is not inconsistent with Canada's obligations under Article XVI of GATS.

Existing Measures: -

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: With regard to the Canada Mortgage and Housing Corporation and its subsidiaries, Canada reserves the right to adopt or maintain any measure that grants advantages to that entity or any new, reorganised or transferee entity having similar functions and objectives with respect to housing finance.

Existing Measures: -

ANNEX III

SCHEDULE OF CHILE

HEADNOTES

1. Commitments in the financial services sector under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. Juridical persons supplying financial services and constituted under the laws of Chile are subject to non-discriminatory limitations on juridical form. For example, partnerships (sociedades de personas) are generally not acceptable juridical forms for financial institutions in Chile. This headnote is not in and of itself intended to affect or otherwise limit a choice by a financial institution of the other Party between branches and subsidiaries.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking and other financial services

Obligations Concerned: National Treatment (Article 11.3)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Ley N° 18.045, Official Gazette of October 22, 1981, Ley de Mercado de Valores, Titles VI and VII, Articles 24, 26 and 27

Description: The directors, administrators, managers or legal representatives of legal entities or natural persons performing the activities of stockbroker and securities agent, must be Chileans or foreigners with a permanent residence permit.

Sector: Financial Services

Sub-Sector: Banking and other financial services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Ley N° 18.657, Official Gazette of September 29, 1987, Ley de Fondos de Inversión de Capital Extranjero, Titles I and II, Articles 12, 14 and 18

Ley N° 18.046, Official Gazette of October 22, 1981, Ley de

Sociedades Anónimas, Title XIII, Articles 126 to 132

Ley N° 18.045, Official Gazette of October 22, 1981, Ley de

Mercado de Valores, Title XXVII, Articles 220 to 238

Description: The capital of a foreign capital investment fund (FICE) may not be remitted abroad until five years from the date in which the contribution was made, or three years in the specific case of venture capital foreign investment funds.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Article 16

Description: Reinsurance brokerage can be performed by foreign reinsurance brokers. These brokers shall be juridical persons, demonstrate that the entity is legally organised in its country of origin and authorised to intermediate risks ceded from abroad, and provide the date that such authorisation was granted. Such entities shall designate a representative in Chile to represent them with broad powers. The representative may be subject to summons and must have residence in Chile.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Decreto con Fuerza de Ley 251, Official Gazette of May 22, 1931, Ley de Seguros, Title III, Articles 58, 62

Decreto Supremo N° 863 de 1989 del Ministerio de Hacienda,

Official Gazette of April 5, 1990, Reglamento de los Auxiliares

del Comercio de Seguros, Title I, Article 2, letter (c)

Description: Administrators and legal representatives of legal entities and natural persons performing the activity of claim settlement and insurance brokerage must be Chileans or foreigners with a permanent residence permit.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Article 20

Description: In the case of the types of insurance covered in Decreto Ley 3.500, involving the cession of reinsurance to foreign reinsurers, the deduction for reinsurance cannot exceed 40 per cent of the total of the technical reserves associated with those types of insurance or a higher percentage if set by the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros).

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Decreto con Fuerza de Ley Nº 251, Diario Oficial, Mayo 22, 1931, Ley de Seguros, Title I

Description: The reinsurance activity may be provided by foreign entities classified, according to risk rating agencies of international well known reputation as indicated by the Superintendence of Securities and Insurance (Superintendencia de Valores y Seguros), at least in the risk category BBB or other equivalent to it. These entities shall have a representative in Chile who will represent them with broad powers. The representative may be subject to summons. Notwithstanding the aforementioned, the designation of a representative will not be necessary if a reinsurer broker, registered on the records of the Superintendence, carries out the reinsurance operation. For all purposes, especially for those relating to the application and performance in the country of the reinsurance contract, this broker shall be considered the legal representative of the reinsurers.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: The purchase of financial services, by persons located in the territory of Chile and its nationals wherever located, from financial services suppliers of another Party shall be subject to the exchange rate regulations adopted or maintained by the Banco Central de Chile in accordance with its Organic Law (Ley 18.840).

Existing Measures: Ley 18.840, Official Gazette of October 10, 1989, Ley Orgánica Constitucional del Banco Central de Chile, Title III

Sector: Financial Services

Sub-Sector: Banking and other financial services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: Chile may grant advantages or exclusive rights to Banco del Estado de Chile, a Chilean state-owned bank, including but not limited to the following: the management of the Chilean government financial resources is made only through deposits in the Cuenta Única Fiscal and in its subsidiary accounts, all of which must be kept at Banco del Estado de Chile.

Existing Measures: Decreto Ley N° 2.079, Official Gazette of January 18, 1978,

Ley Orgánica del Banco del Estado de Chile Decreto Ley N° 1.263,

Official Gazette of November 28, 1975,

Decreto Ley Orgánico de Administración Financiera del Estado, Article 6

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: All types of insurance that Chilean law makes or may make compulsory, and all insurance related to social security, cannot be contracted outside Chile. This reservation shall not apply to the types of insurance included in Chile's commitments listed in Annex 11-A (Cross-Border Trade), paragraph 1(a).

Existing Measures: Decreto con Fuerza de Ley N° 251, Official Gazette of May 22, 1931, Ley de Seguros, Title I, Article 4

Sector: Financial Services

Sub-Sector: Social services

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: Chile reserves the right to adopt or maintain any measure with respect to the provision of public law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for reasons of public interest: income security or insurance, social security or insurance, social welfare, public education, public training, health care and child care.

Existing Measures:

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Chile reserves the right to adopt or maintain any measure with respect to Article 11.5 (Market Access for Financial Institutions), except for the following sectors, subsectors and financial services defined in accordance with the relevant Chilean legislation and subject to the terms, limitations and conditions specified below:

ANNEX III

SCHEDULE OF JAPAN

HEADNOTES

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. In the interpretation of a reservation in Section A, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of the Chapter against which the reservation is taken, and the Measures element shall prevail over all the other elements.

3. In the interpretation of a reservation in Section B, all elements of the reservation shall be considered. The Description element shall prevail over all the other elements.

4. To clarify Japan's commitment with respect to Article 11.5 (Market Access for Financial Institutions), enterprises supplying financial services are subject to non discriminatory limitations on juridical form.

5. (a) For greater certainty, for prudential reasons within the context of Article 11.11 (Exceptions), Japan shall not be prevented from applying non-discriminatory limitations concerning admission to the market of new financial services which shall be consistent with a regulatory framework aimed at achieving such prudential objectives. In this context, securities firms are allowed to deal in securities defined in the relevant laws of Japan, and banks are not allowed to deal in those securities unless allowed in accordance with those laws.

(b) For Japan, services supplied in the territory of a Party to a service consumer in another Party without any active marketing from the service supplier are considered as services supplied under subparagraph (b) of the definition of "cross-border supply of financial services" in Article 11.1 (Definitions).

6. For the purposes of this Annex, JSIC means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised on November 6, 2007.

Sector: Financial Services

Sub-Sector: Banking and other financial services

(excluding insurance and insurance-related services)

Industry Classification: JSIC 622 Banks, except central bank

JSIC 631 Financial institutions for small-businesses

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Deposit Insurance Law (Law No. 34 of 1971), Article 2

Description: The deposit insurance system does not cover deposits taken by branches of foreign banks.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Industry Classification: JSIC 672 Non-life insurance institutions

JSIC 6742 Non-life insurance agents and brokers

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Insurance Business Law (Law No.105 of 1995), Articles 185, 186, 275, 276, 277, 286 and 287

Cabinet Order for Enforcement of Insurance Business Law (Cabinet Order No. 425 of 1995), Articles 19 and 39.2

Ministerial Ordinance for Enforcement of Insurance Business Law (Ministerial Ordinance of the Ministry of Finance No. 5 of 1996), Articles 116 and 212.6

Description:

Commercial presence is in principle required for insurance contracts on the following items and any liability arising therefrom:

(a) goods being transported within Japan; and

(b) ships of Japanese registration which are not used for international maritime transport.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Industry Classification: -

Obligations Concerned: National Treatment (Article 11.3)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Description:

Japan reserves the right to adopt or maintain any measure with respect to cross-border supply of or trade in financial services as defined in subparagraph (b) of the definition of "cross border supply of financial services" in Article 11.1 (Definitions) for insurance and insurance-related services, other than the following services, whether supplied by a cross border financial service supplier of another Party established in that Party as a principal, through an intermediary or as an intermediary:

(a) insurance of risks relating to:

(ii) goods in international transit; and

(b) reinsurance, retrocession and the services auxiliary to insurance as referred to in subparagraph (d) of the definition of "financial service" in Article 11.1 (Definitions).

Note: Insurance intermediation services may be supplied only for insurance contracts allowed to be supplied in Japan.

Existing Measures:

Insurance Business Law (Law No. 105 of 1995), Articles 185, 186, 275, 276, 277, 286 and 287

Cabinet Order for Enforcement of Insurance Business Law (Cabinet Order No. 425 of 1995), Articles 19 and 39.2 Ministerial Ordinance for Enforcement of Insurance Business Law (Ministerial Ordinance of the Ministry of Finance No. 5 of 1996), Articles 116 and 212.6

ANNEX III

SCHEDULE OF MALAYSIA

HEADNOTES

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. For greater certainty, all financial institutions offering Islamic financial products and services will be subject to the Shariah requirements as determined by financial services regulators in Malaysia. Shariah requirements may be measures for the purposes of Article 11.11.1 (Exceptions).

3. To clarify Malaysia's commitments with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws, regulations and guidelines of Malaysia, are subject to non-discriminatory limitations on juridical form.1

4. For entries in:

(a) Section A, all elements of the entry shall be considered in their totality for the purpose of its interpretation. Where there is any discrepancy between the Measures element and the Description element of that entry, the Description element shall prevail to the extent of that discrepancy.

(b) Section B, in accordance with Article 11.10.2 (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry shall not apply to the sectors, subsectors, and activities identified in the Description element of that entry.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Money Services Business Act 2011

Guidelines on International Islamic Bank

Guidelines on Establishment of International Takaful Operator

Guideline on Electronic Money

Guidelines on Application for Registration and Operation of

Retakaful Operator

BNM Press Statement (Ref. 06/10/10) dated 25 June 2010

Requirements for Operating Remittance Service

Credit Card Guidelines

Capital Markets and Services Act 2007

Licensing Handbook

Description: Financial institutions supplying financial services in the territory of Malaysia must be constituted as locally-incorporated companies under the laws of Malaysia.

This requirement is not applicable to persons solely carrying out:

(a) reinsurance or retakaful business;

(b) Islamic banking business in international currencies other than ringgit;

(d) maritime and aviation loss adjusting business.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Guidelines on Outsourcing of Banking Operations

Guidelines on Outsourcing of Islamic Banking Operations

Guidelines on Outsourcing for Insurers

Guidelines on Outsourcing for Takaful Operators

Description: Approval for licensed banking institutions and insurance companies or takaful operators in Malaysia to outsource any of their activities abroad is subject to reciprocal treatment2 by the applicant's home country.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9) Level of Government: Central

Measures: Section 122 of the Companies Act 1965

Description: At least two directors of a company incorporated in Malaysia must be ordinarily resident or have principal residence within Malaysia.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Description: The carrying on of a licensed business or an approved business regulated by Bank Negara Malaysia (the Bank) requires a licence by the Minister of Finance or an approval by the Bank, respectively. A licence or an approval will not be granted unless the Minister of Finance or the Bank determines that the application for licence or approval will be in the best interest of Malaysia. In making a determination, the Minister and the Bank will have regard to:

(a) the effect of the investment on the level and nature of economic activity in Malaysia, including the effect on productivity, efficiency and quality of financial services;

(b) the contribution towards enhancing international trade and investment linkages between Malaysia and other countries;

(c) the effect of the investment on the stability of the financial system, including on conduct and behaviours that could pose a risk to the financial system; or

(d) the degree and significance of participation of Malaysians in the financial sector.

In accordance with Article 11.13 (Transparency and Administration of Certain Measures):

(i) the Bank shall make an administrative decision on a complete4 application within 120 days, and shall promptly notify the applicant of the decision; and

(ii) on the request of an unsuccessful applicant, the Bank shall, to the extent practicable, provide to the applicant the reasons as to why the application was not in the best interest of Malaysia.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Description: 1. No natural person shall hold more than 10 per cent of shares or interest in shares of a licensed commercial bank, investment bank, Islamic bank, licensed insurance company or takaful operator ("maximum permissible holdings").

2. The:

(a) acquisition of shares or interest-in-shares of a licensed commercial bank, investment bank, Islamic bank, licensed insurance company or takaful operator; and

(b) exemption from the maximum permissible holdings in a licensed commercial bank, investment bank, Islamic bank, licensed insurance company or takaful operator, requires approval by the Minister of Finance or Bank Negara Malaysia (the Bank), as the case may be. Approval will not be granted unless the Minister of Finance or the Bank, as the case may be, determines that the application will be in the best interest of Malaysia. In making a determination, the Minister of Finance and the Bank will have regard to:

(i) the effect of the investment on the level and nature of economic activity in Malaysia, including the effect on productivity, efficiency and quality of financial services;

(ii) the contribution towards enhancing international trade and investment linkages between Malaysia and other countries;

(iii) the effect of the investment on the stability of the financial system, including on conduct and behaviours that could pose a risk to the financial system; or

(iv) the degree and significance of participation of Malaysians in the financial sector.

3. In accordance with Article 11.13 (Transparency and Administration of Certain Measures):

(a) the Bank shall make a decision on a complete application within 120 days, and shall promptly notify the applicant of the decision; and

(b) on the request of an unsuccessful applicant, the Bank shall, to the extent practicable, provide to the applicant the reasons as to why the application was not in the best interest of Malaysia.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Press statement Ref No: 08/11/06 dated 17 August 2011

Circular on Establishment of New Branches by Locally

Incorporated Foreign Banks

Description: 1. In relation to the establishment, closure and relocation of offices by locally incorporated foreign banks in Malaysia, the following restrictions are applicable:

(a) with effect from 29 December 2005, locally incorporated foreign banks may only establish up to eight new physical branches subject to a distribution ratio of 1(market centre): 2(semi-urban): 1(non urban). However:

(i) locally incorporated foreign banks are permitted to retain the number of branches established as at 29 December 2005;

(ii) the distribution ratio is not applicable if the locally incorporated foreign bank has less than eight physical branches as of 17 August 2011.

(b) locally incorporated foreign banks may not establish new off-premise electronic terminals.

2. Notwithstanding paragraph 1, locally incorporated foreign banks from other Parties may establish:

(a) an additional eight new physical branches based on a distribution ratio of 1(market centre): 2(semi-urban): 1(non-urban); and

(b) new off-premise automated teller machines, subject to reciprocal treatment9 from the licensed foreign bank's home country.

3. In relation to the establishment and relocation of offices by locally incorporated foreign Islamic banks in Malaysia, the establishment of physical branches by locally incorporated foreign Islamic banks is subject to a distribution ratio of 1(market centre): 1(non-market centre).

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Description: Approval for purchase of insurance or takaful cover for property and liability risks from insurance companies or takaful operators abroad is only granted if such insurance or takaful coverage is not available from licensed insurance companies or takaful operators.

For the purposes of this entry:

"liability" means liability of a person resident in Malaysia to a third party; and

"property" means movable or immovable property located in Malaysia, including any ship or aircraft registered in Malaysia.

This limitation is not applicable for direct insurance of risks relating to:

(a) maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods, and any liability arising therefrom;

(b) goods in international transit;

(d) directors' and officers' liability five years after the date of entry into force of this Agreement.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Financial Services Act 2013

Islamic Financial Services Act 2013

Guidelines on General Reinsurance Arrangements

Guidelines on Takaful Operational Framework

Description: All licensed general insurance companies and takaful operators in Malaysia must first accord priority to insurance or reinsurance companies and takaful or retakaful operators licensed in Malaysia, followed by those in Labuan, before obtaining reinsurance or retakaful cover from insurance or reinsurance companies and takaful or retakaful operators abroad.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Income Tax Act 1967

Description: Annuity incomes received by policyholders of annuity policies underwritten by domestic-owned life insurers or family takaful operators operating in the territory of Malaysia are exempted from tax.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Circular on Voluntary Cessions to Malaysian Reinsurance Berhad

Description: All licensed general insurance companies operating in Malaysia are required to reinsure 2.5 per cent for all insurance classes with Malaysian Reinsurance Berhad.

In addition, if a licensed general insurance company reinsures a further portion of its underwritten business beyond the percentage specified above, 15 per cent of the remaining portion of business to be reinsured must be reinsured with Malaysian Reinsurance Berhad.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: -

Description: Malaysia reserves the right to adopt or maintain any measures in relation to the development of the pension system in Malaysia.

Such measures will cease to be applicable three years after the date of entry into force of this Agreement.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Capital Markets and Services Act 2007

Licensing Handbook

Description: Only Malaysian nationals are allowed to provide financial planning services through a sole-proprietorship or partnership.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance) Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Capital Markets and Services Act 2007

Licensing Handbook

Description: Limitation on foreign shareholding in the capital market

The permissible composition of foreign shareholding in a credit rating agency is limited to 49 per cent. However, this limitation will not be applicable after 31 December 2016.

Limitation on individual shareholding in a stockbroking company

Foreign investors are only allowed to own shares in a stockbroking company as corporations. In contrast, Malaysians are allowed to hold shares in a stockbroking company either as individuals or corporations. Malaysians wishing to own shares as individuals are only allowed to hold up to a maximum of 10 per cent of the total paid-up capital of a stockbroking company.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Capital Markets and Services Act 2007

Licensing Handbook

Description: A special scheme broker is only allowed to carry out the range of activities as stipulated in Appendix 1 of the Licensing Handbook. Branching is not allowed for a special scheme broker.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Capital Markets and Services Act 2007

Licensing Handbook

Description: Any person wishing to undertake capital market activities11 requires authorisation by the Securities Commission Malaysia. Authorisation will not be granted unless the application is determined to be in the best interest of Malaysia. In making a determination, the Securities Commission Malaysia will give regard to any one or more of the following:

(a) the area of specialisation and level of expertise that can be offered to the capital market including its effect on the productivity, transference of skills, and efficiency and quality of capital market services;

(b) the risk posed on the systemic stability of the capital market including activities and conduct that will likely impact the orderly functioning of the capital market;

(d) ability in developing strategic or nascent sectors in the capital market; or

(e) the degree and significance of participation of Malaysians in the capital market.

In accordance with Article 11.13 (Transparency and Administration of Certain Measures):

(i) the Securities Commission Malaysia shall, to the extent practicable make an administrative determination on a complete14 application within 120 days, and shall promptly notify the applicant of the decision; and

(ii) on the request of an unsuccessful applicant, the Securities Commission Malaysia shall, to the extent practicable, provide to the applicant reasons as to why the application was not in the best interest of Malaysia.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: Malaysia reserves the right to adopt or maintain any measures related to the non-internationalisation of ringgit which include:

(a) the requirement for international settlement to be made in foreign currency;

(b) limitation on the access to ringgit financing by non residents for use outside Malaysia; and

Existing Measures: Central Bank of Malaysia Act 2009

Financial Services Act 2013

Islamic Financial Services Act 2013

Notices on Foreign Exchange Administration Rules

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: The purchase of a financial service by a resident from a financial service supplier abroad shall be subject to the requirements, restrictions and conditions imposed under the Notices on Foreign Exchange Administration Rules.

Existing Measures: Central Bank of Malaysia Act 2009

Financial Services Act 2013

Islamic Financial Services Act 2013

Notices on Foreign Exchange Administration Rules

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: Malaysia may grant advantages to one or more development financial institutions, including but not limited to:

(a) Bank Pembangunan Malaysia Berhad;

(b) Bank Perusahaan Kecil dan Sederhana Malaysia Berhad;

(d) Bank Kerjasama Rakyat Malaysia;

(e) Bank Simpanan Nasional;

(f) Bank Pertanian Malaysia Berhad;

(g) Malaysian Industrial Development Finance Berhad;

(h) Credit Guarantee Corporation Berhad;

(i) Lembaga Tabung Haji;

(j) Sabah Development Bank Berhad;

(k) Sabah Credit Corporation;

(l) Borneo Development Corporation (Sabah) Sdn. Bhd.;

(m) Borneo Development Corporation (Sarawak) Sdn. Bhd.;

(n) Danajamin Nasional Berhad; and

(o) Cagamas Berhad.

Existing Measures: -

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: The establishment or operation of the following:

(a) securities and derivatives markets (as approved exchanges, exempt exchanges or recognised markets);

(b) clearing facility; and

is subject to the written approval, including the imposition of terms and conditions for approval, either from the Minister of Finance on the recommendation of the Securities Commission Malaysia, or from the Securities Commission Malaysia, where applicable. For greater certainty, this measure will not affect the participation of financial institutions in any such markets, clearing facility or central depository.

Written approval from the Minister of Finance is required before a person (alone or acting in concert with other persons) can acquire voting shares of an exchange holding company of five per cent or more of the aggregate of the nominal amount of all the voting shares in the exchange holding company.

Written approval from the Minister of Finance is required before an exchange holding company can reduce its shareholding in a stock exchange, a derivatives exchange, an approved clearing house or a central depository, to a level below 75 per cent, or such other percentage as may be specified from time to time by the Minister of Finance of the total issued and paid-up capital in the stock exchange, derivatives exchange, approved clearing house or central depository.

Existing Measures: Capital Markets and Services Act 2007 Securities Industry (Central Depositories) Act 1991

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Malaysia reserves the right to provide subsidies or grant advantages to financial institutions that are integral for the orderly functioning and development of the capital market. This includes subsidies and advantages granted in connection with:

(a) the supply of any financial service involving what Malaysia deems to be strategically important institutions, including:

(i) exchanges;

(ii) central depositories;

(iii) repositories;

(iv) clearing and settlement facilities; and

(v) market operators; and

(b) the supply of any financial service, which Malaysia deems necessary:

(i) for the development of local micro, small and medium enterprises; or

(ii) to facilitate or enable the supply of any service to Malaysian enterprises that is not being supplied in Malaysia or that is not being supplied efficiently.

Existing Measures: -

ANNEX III

SCHEDULE OF MEXICO

HEADNOTES

1. Commitments in Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. The listing of a reservation in Section A or B does not mean that it cannot otherwise be justified as a measure adopted or maintained for prudential reasons pursuant to Article 11.11.1 (Exceptions).

3. With respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of Mexico are subject to non-discriminatory limitations on juridical form.

4. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to those non conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

5. For greater certainty, "limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment" should not be considered a limitation to Article 11.5 (Market Access for Financial Institutions).

6. Description provides a general non-binding description of the measure for which the entry is made.

7. In the interpretation of a reservation in Section A, all elements of the entry shall be considered. The Measures element shall prevail over all other elements.

8. In the interpretation of a reservation in Section B, all elements of the entry shall be considered. The Description element shall prevail over all other elements.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Credit Unions Law (Ley de Uniones de Crédito), Article 21

Description: Participation by any individual or legal entity, whether direct or indirect, in the equity of a credit union shall not exceed 15 per cent, unless authorised by the National Commission on Banking and Securities (Comisión Nacional Bancaria y Valores) (CNBV).

Notwithstanding the above paragraph, any foreign individual or legal entity, as well as foreign entities without legal capacity, may hold up to 15 per cent of the equity of a credit union, indirectly, through a Mexican legal entity.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Articles 68, 70, 72 and 74

Credit Institutions Law (Ley de Instituciones de Crédito),

Articles 45-A section I, 45-B, 45-E, 45-G and 45-I

Securities Market Law (Ley del Mercado de Valores),

Articles 2, section VIII, 160, 161, 163 and 165

Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Articles 2, section XI, 74, 75, 78 and 79

Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Articles 45 Bis 1, section I, 45 Bis 2, 45 Bis 3, 45 Bis 5 and 45 Bis 7

Investment Funds Law (Ley de Fondos de Inversión),

Articles 62, section I, 63, 64 and 66

Retirement Savings System Law (Ley de los Sistemas de Ahorro para el Retiro), Article 21

Rules for the Establishment of Foreign Financial Institution Subsidiary Companies (Reglas para el Establecimiento de Filiales de Instituciones Financieras del Exterior), Rules Eighth and Ninth

Description: In order to invest in the equity of a Mexican subsidiary of a financial groups holding company, a commercial bank, a securities firm, a bonding company, an insurance company, a foreign exchange firm, a general deposit warehouse, a managing company of investment funds, an investment fund stock distribution company, and a retirement funds management company, a financial institution of another Party must:

(a) directly or indirectly, perform in the territory of that other Party, in accordance with the applicable law, the same type of operations that the subsidiary in question is allowed to perform in Mexico;

(b) be incorporated in a country with which Mexico has entered into an international treaty or agreement that allows the establishment of subsidiaries in Mexico, and

(c) obtain prior authorisation of the Mexican financial authorities and comply with the requirements set out in the respective law.

The financial institutions of another Party must own at least 51 per cent of the subsidiary's equity.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Article 67, sections I and II

Credit Institutions Law (Ley de Instituciones de Crédito), Article 45-A, sections I and II

Securities Market Law (Ley del Mercado de Valores), Article 2, sections VIII and XIII

Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Article 2, sections XI and XVIII

Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Article 45 Bis 1, sections I and II

Investment Funds Law (Ley de Fondos de Inversión), Article 62, sections I and II

Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Article 21

Description: Branches of financial institutions of another Party are not permitted in Mexican territory.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Article 24

Credit Institutions Law (Ley de Instituciones de Crédito), Article 13

Securities Market Law (Ley del Mercado de Valores), Articles 117 and 237

Law to Regulate Credit Information Corporations (Ley para Regular las Sociedades de Información Crediticia), Article 8

Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Article 50, section I

Retirement Saving System Law (Ley de los Sistemas de Ahorro para el Retiro), Article 21

Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares de Crédito), Article 8, section III

Investment Funds Law (Ley de Fondos de Inversión), Article 37

Credit Unions Law (Ley de Uniones de Crédito), Article 21

Description: Foreign governments are not allowed to participate in the equity of Mexican financial groups holding companies, commercial banks, securities firms, stock exchange, credit information corporations, bonding companies, insurance companies, retirement funds management companies, foreign exchange firms, auxiliary credit organisations, general deposit warehouses, managing companies of investment funds, investment fund stock distribution companies, investment fund stock value assessment companies or credit unions, except:

1. When they do it as a temporary prudential measure, such as support or bailouts. Financial entities in this scenario will submit to the corresponding financial authority the information and documents that prove they fall within this exception.

2. When said participation implies control2 over such financial institutions, and is carried out through official legal entities, such as funds and development governmental entities, prior discretional authorisation by the corresponding financial authority, which has to determine that such legal entities:

(a) do not exercise governmental functions; and

(b) their managing boards are independent from the respective foreign government.

3. When the participation is indirect and does not involve the control of the financial institutions.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Credit Institutions Law (Ley de Instituciones de Crédito), Articles 23, 24, 45-K and 45-L

Securities Market Law (Ley del Mercado de Valores), Articles 124, 128, 131 and 168

Law to Regulate Financial Groups (Ley para Regular las Agrupaciones Financieras), Articles 35, 60 and 77

Popular Savings and Credit Law (Ley de Ahorro y Crédito Popular), Articles 21 and 23

Credit Unions Law (Ley de Uniones de Crédito), Article 26

Law of Credit Organisations and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito), Articles 8, section X, 8 Bis 1, 8 Bis 3, 45 Bis 11, 45 Bis 12 and 45 Bis 13

Law to Regulate the Activities of Savings and Loans Cooperative Companies (Ley para Regular las Actividades de las Sociedades Cooperativas de Ahorro y Préstamo), Article 5, section I

Cooperative Companies General Law (Ley General de Sociedades Cooperativas), Article 7

Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Articles 56, 58, 60 and 82

Investment Funds Law (Ley de Fondos de Inversión), Article 73

Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Articles 50, section V and 66 Bis, section I

Rules for the Establishment of Foreign Financial Institution Subsidiary Companies (Reglas para el Establecimiento de Filiales de Instituciones Financieras del Exterior), Rule Tenth Rules Applicable to Clearing Houses for Card Payments (Reglas Aplicables a las Cámaras de Compensación para Pagos con Tarjetas), Rule Second

Description: The majority of the members of the board of directors of commercial banks, securities firms, financial groups holding companies, popular financial companies, credit unions, general deposit warehouses, foreign exchange firms, bonding companies, insurance companies, retirement funds management companies, subsidiary managing companies of investment funds, subsidiary investment fund stock distribution companies and clearing houses for card payments, must be Mexican or reside in Mexican territory.Directors and managers of savings and loans cooperative companies must be Mexican.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Securities Market Law (Ley del Mercado de Valores), Article 167

Description: If a subsidiary securities firm acquires a Mexican securities firm, both financial institutions must merge.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro), Article 26

Description: Retirement funds management companies may not own more than 20 per cent share of the retirement savings systems market.

The National Retirement Savings System Commission may authorise a limit beyond 20 per cent, provided that this does not constitute prejudice to the interests of workers.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Securities Market Law (Ley del Mercado de Valores), Article 234

Description: In order to be organised as a stock exchange, it is required to obtain prior concession from the Federal Government, which may be granted at the discretion of the financial authorities.

The granting of such concessions will be subject to considerations regarding the market's development.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Articles 20, 21, 22, 23 and 24

Description: 1. It is forbidden to contract with entities of another Party:

(a) insurance of persons:

(i) when the contracting holder is a natural person and is in Mexico when the contract is entered into; or

(ii) when the contracting holder is a legal person, if the insured resides in Mexican territory;

(b) insurance of maritime or aircraft hulls, as well as any kind of vehicle, for risks inherent to the maritime and transportation industries, as long as those maritime and aircraft hulls and vehicles have Mexican plates or belong to persons domiciled in Mexico;

(c) credit insurance, housing credit insurance and insurance of financial guarantee, when the insured is subject to Mexican law. Regarding insurance of financial guarantee, the prohibition will not apply when the securities, or documents matter of the insurance participate in foreign markets exclusively;

(d) insurance against liability, derived from events that may take place in Mexico; and

(e) insurance against all the other industries for risks that may take place in Mexican territory. Insurance acquired by non-residents in Mexican territory outside of Mexico for their persons or vehicles to cover risks during their eventual entries will not be considered as such.

2. In the following cases, the National Insurance and Bonding Commission (Comisión Nacional de Seguros y Fianzas) (CNSF), may make an exception from paragraph 1:

(a) to the companies of another Party that, with prior authorisation of the National Insurance and Bonding Commission (Comisión Nacional de Seguros y Fianzas), and complying with the requirements established by it, enter into

insurance contracts in Mexico to cover risks that may only take place in the foreign country where they are authorised to provide insurance services;

(b) to the person that proves that none of the insurance companies authorised to operate in the country, either is able or deems convenient to enter into a given insurance operation proposed to it. In this case, a specific authorisation will be granted so that the insurance may be contracted with an entity of another Party, either directly or through a Mexican insurance company.

3. The brokerage of insurance, agency of insurance and auxiliary services for the operations listed in paragraph 1 is forbidden.

4. The contracts entered into that contravene the aforementioned provisions will not have any legal effect.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Articles 34 and 35

Description: 1. It is forbidden to contract with foreign companies bonds to guarantee acts of persons that must comply with obligations in Mexican territory, except for rebonding or when the bonds are received by Mexican bonding institutions as counterguarantee.

2. Notwithstanding the prohibition in paragraph 1, if none of the financial institutions authorised to operate in Mexico can or deems it convenient to undertake a bonding operation proposed to it, the National Insurance and Bonding Commission (Comisión Nacional de Seguros y Fianzas) (CNSF) once the above-mentioned circumstances have been proved to it, will grant a specific authorisation so that the individual proposing it may contract the bond directly with a foreign company, either directly or through a financial institution of Mexico.

3. The brokerage of the operations described in paragraph 1 is forbidden.

4. The contracts entered into that contravene the aforementioned provisions will not have any legal effect.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Insurance and Bonding Companies Law (Ley de Instituciones de Seguros y Fianzas), Article 337, section X

Regulation of Insurance and Bonding Agents (Reglamento de Agentes de Seguros y de Fianzas), Article 12, section V, subparagraph (b)

Rules for the authorisation and operation of reinsurance brokers (Reglas para la autorización y operación de intermediarios de reaseguros), Rule Fourth

Description: Governments or official foreign entities may not participate in mutual insurance companies, the equity of insurance and bonding agencies, or the equity of reinsurance brokers, either directly or indirectly.

Foreign financial entities may not participate in insurance or bonding agencies, or mutual insurance companies.

Groups of foreign individuals or legal entities, regardless of the form they adopt, may not participate in the equity of mutual insurance companies, either directly or indirectly. For clarification purposes, foreign individuals may participate in mutual insurance companies as long as they do so individually and not as part of a group or entity.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Description: Mexico, when selling or disposing of its equity interest in, or the assets of, an existing state enterprise or an existing governmental entity, may prohibit or impose limitations on the ownership of such interest or assets, and on the ability of owners of such interest or assets to control any resulting enterprise, by investors of Mexico of another Party or of a non-Party or their investments.

Additionally, Mexico may impose limitations on the supply of the services related to such investments. With respect to such a sale or other disposition, Mexico may adopt or maintain any measure relating to the nationality of individuals appointed to senior management positions or members of the board of directors.

For the purposes of this reservation:

(b) "state enterprise" means an enterprise owned or controlled through ownership interest by Mexico and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interest in, or the assets of, an existing state enterprise or governmental entity.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: Mexico reserves the right to adopt or maintain measures that grant exclusive rights to development banks, decentralised entities or public funds for the economic development already established at the time that this Agreement comes into force, as well as any new, reorganised or transferee development bank, decentralised entity or public fund for the economic development with similar functions and objectives with respect to development banking.

The institutions of development banking include:

(a) National Financial Institution, S.N.C. (Nacional Financiera, S.N.C.);

(b) National Bank of Public Works and Services, S.N.C. (Banco Nacional de Obras y Servicios Públicos, S.N.C.);

(d) Federal Mortgage Corporation, S.N.C. (Sociedad Hipotecaria Federal, S.N.C.);

(e) National Savings and Financial Services Bank, S.N.C (Banco del Ahorro Nacional y Servicios Financieros, S.N.C.);

(f) National Bank of the Army, Air Force and Navy, S.N.C. (Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C.), or their respective successors.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: Mexico reserves the right to adopt or maintain measures that grant advantages or exclusive rights to the national insurance institutions, national bonding institutions, a national pension fund or national auxiliary organisations of credit in existence at the date of entry into force of this Agreement, as well as any new, reorganised or transferee national insurance institution, national bonding institution, a national pension fund or national auxiliary organisation of credit with similar functions and objectives with respect to public policy purposes.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Mexico reserves the right to adopt or maintain any measure in relation to any financial service that is supplied by a covered investment as defined in Article 9.1 (Definitions) that is not a covered investment in a financial institution as defined in Article 11.1 (Definitions), in order to regulate such entity as a financial institution.

ANNEX III

SCHEDULE OF NEW ZEALAND

HEADNOTES

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in the explanatory notes to Annex III, these headnotes and the Schedule below.

2. For entries in Section A, Description sets out the non-conforming measure for which the entry is made.

3. For entries in Section A, all elements of the entry shall be considered in their totality for the purposes of its interpretation.

4. For entries in Section B, where an inconsistency arises in relation to the interpretation of an entry, the Description element of the entry shall prevail to the extent of the inconsistency.

5. In accordance with Article 11.10 (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry do not apply to measures identified in the Description element of that entry.

6. To clarify New Zealand's commitment with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of New Zealand are subject to non-discriminatory limitations on juridical form.

7. Article 11.10(1)(c) (Non-Conforming Measures) shall not apply to non-conforming measures relating to paragraph (b) of Article 11.5 (Market Access for Financial Institutions).

8. For transparency purposes and in accordance with Article 11.10.3 (Non-Conforming Measures), non-conforming measures set out in New Zealand's Schedules to Annex I and Annex II as not subject to Article 9.4 (National Treatment), Article 9.5 (Most-Favoured Nation Treatment), Article 9.11 (Senior Management and Boards of Directors), Article 10.3 (National Treatment) or Article 10.4 (Most-Favoured-Nation Treatment) or, including those entries that apply to all sectors or financial services, shall be treated as non-conforming measures not subject to Article 11.3 (National Treatment), Article 11.4 (Most-Favoured Nation Treatment) or Article 11.9 (Senior Management and Boards of Directors), to the extent that the measure, sector, subsector or activity set out in the entry is covered by Chapter 11 (Financial Services).

9. For greater certainty, the measures that New Zealand may take in accordance with Article 11.11.1 (Exceptions), provided they meet the requirements of that Article, include those governing:

(a) licensing, registration or authorisation as a financial institution or cross-border financial service supplier, and corresponding requirements;

(b) juridical form, including legal incorporation requirements for systemically important financial institutions and limitations on deposit-taking activities of branches of overseas banks, and corresponding requirements;

(c) requirements pertaining to directors and senior management of a financial institution or cross-border financial service supplier;

(d) capital, related party exposures, liquidity, disclosure and other risk management requirements;

(e) payment, clearance and settlement systems (including securities systems); (f) anti-money laundering and countering financing of terrorism; and

(g) distress or failure of a financial institution or cross-border financial service supplier.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Commodity Levies Act 1990

Commodity Levies Amendment Act 1995

Kiwifruit Industry Restructuring Act 1999 and regulations

Description: The provision of crop insurance for wheat can be restricted in accordance with the Commodity Levies Amendment Act 1995 (CLA). Section 4 of the CLA provides for the use of funds derived under a mandatory commodity levy on wheat growers to be used for the purpose of funding a scheme insuring wheat crops against damage or loss.

The provision of insurance intermediation services related to the export of kiwifruit can be restricted in accordance with the Kiwifruit Industry Restructuring Act 1999 and regulations relating to the export marketing of kiwifruit.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Kiwisaver Act 2006

Description: At least one director of a corporate trustee and one director of a fund manager of a registered Kiwisaver scheme must be a New Zealand resident.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Senior Management and Boards of Directors (Article 11.9)

Description: New Zealand reserves the right to adopt or maintain any measure with respect to the supply of:

(a) compulsory social insurance for personal injury caused by accident, work related gradual process disease and infection, and treatment injury; and

(b) disaster insurance for residential property for replacement cover up to a defined statutory maximum.

Existing Measures: Accident Compensation Act 2001

Earthquake Commission Act 1993

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Description: New Zealand reserves the right to adopt or maintain any measure with respect to the establishment or operation of exchanges, securities markets or futures markets.

For greater certainty, this reservation does not apply to financial institutions participating in, or seeking to participate in, any such exchange, securities market or futures market.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Description: New Zealand reserves the right to adopt or maintain any measure with respect to the establishment or operation of any unit trust, market or other facility established for the trade in, or allotment or management of, securities in the co-operative dairy company arising from the amalgamation authorised under the Dairy Industry Restructuring Act 2001, or any successor body.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Description: New Zealand reserves the right to adopt or maintain any measure with respect to insurance and insurance-related services for industry marketing boards established for products under the following CPC codes:

(a) 01, except 01110 and 01340 (products of agriculture, horticulture and market gardening, except wheat and kiwifruit);

(b) 02 (live animals and animal products);

(c) 211, except 21111, 21112, 21115, 21116 and 21119 (meat and meat products, except beef, sheep meat, poultry and offal);

(d) 213-216 (prepared and preserved vegetables, fruit juices and vegetable juices, prepared and preserved fruit and nuts, animal and vegetable oils and fats);

(e) 22 (dairy);

(f) 2399 (other food products); and

(g) 261, except for 2613, 2614, 2615, 02961, 02962 and 02963 (natural textile fibres prepared for spinning, excluding wool).

Existing Measures: Commodity Levies Act 1990

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Description: New Zealand reserves the right to adopt or maintain any measure that requires all companies to have one or more directors, of whom at least one must:

(a) live in New Zealand; or

(b) live in an "enforcement country"2 and be a director of a company that is registered (except as the equivalent of an overseas company) in that enforcement country.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Description: New Zealand reserves the right to adopt or maintain any measure with respect to:

(a) the provision of public law enforcement and correctional services; and

(b) the following, to the extent that they are social services established for a public purpose:

(i) child care;

(ii) health;

(iii) income security and insurance;

(iv) public education;

(v) public housing;

(vi) public training;

(vii) public transport;

(viii) public utilities;

(ix) social security and insurance; and

(x) social welfare.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Description: New Zealand reserves the right to adopt or maintain any measure that provides a subsidy or grant to any entities that are controlled, or wholly or partially owned, by the government and that may conduct financial operations, including measures taken in relation to the privatisation of such entities.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Description: New Zealand reserves the right to adopt or maintain any measure that provides a subsidy or grant to any entity that is systemically important to the infrastructure of the financial market, including:

(a) exchanges;

(b) clearing and settlement facilities; and

ANNEX III

SCHEDULE OF PERU

HEADNOTES

1. Commitments under Chapter 11 (Financial Services), in the sector and sub-sectors listed in this Schedule, are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. To clarify the commitment of Peru with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services constituted under the laws of Peru are subject to non-discriminatory limitations on juridical form.

3. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to those non conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

4. In case of Section A, Description provides a general non-binding description of the measure for which the entry is made.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligation Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: General Law of the Financial and Insurance Systems and Organic Law of the Superintendency of Banking and Insurance (Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica de la Superintendencia de Banca y Seguros), Law N° 26702 and its amendments

Description: A financial institution of the other Party providing banking services and established in Peru through a branch must assign to its branch certain capital, which must be located in Peru. In addition to measures that Peru may impose consistent with Article 11.11.1 (Exceptions) the operations of the branch are limited by its capital located in Peru.

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligation Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: A financial institution of the other Party providing insurance or insurance-related services and established in Peru through a branch must assign to its branch certain capital, which must be located in Peru. In addition to measures that Peru may impose consistent with Article 11.11.1 (Exceptions) the operations of the branch are

limited by its capital located in Peru.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligation Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Securities Market Law (Ley del Mercado de Valores), approved by Legislative Decree N° 861 and its amendments, articles 280, 333, 337 and Seventeenth Final Provision

General Law of the Financial and Insurance Systems and Organic Law of the Superintendency of Banking and Insurance (Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica de la Superintendencia de Banca y Seguros), Law N° 26702 and its amendments, articles 136 and 296

Description: Financial institutions constituted under the laws of Peru and debt securities offered in a primary or secondary public offering in the territory of Peru must be rated by credit rating companies constituted under the laws of Peru. They may also be rated by other credit rating agencies, but only in addition to the mandatory rating.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligation Concerned: National Treatment (Article 11.3)

Level of Government: Central

Law Establishing the Banco Agropecuario (Ley de Creación del Banco Agropecuario), Law N° 27603 and its amendments

Law Establishing the Corporación Financiera de Desarrollo (COFIDE) (Ley de Creación de la Corporación Financiera de Desarrollo (COFIDE)), Law Decree N° 206 and its amendments and Law Nº 25382

Law Establishing the Banco de la Nación (Ley de Creación del Banco de la Nación), Law N° 16000 and its amendments

Law Nº 28579, (Ley de Conversión del Fondo Hipotecario de la Vivienda - Fondo MIVIVIENDA a Fondo MIVIVIENDA S.A.) and its amendments

Law N° 10769 (Creando la Caja Municipal de Crédito Popular de Lima) and its amendments

Supreme Decree N° 157-90-EF (Norman Funcionamiento en el País de las Cajas Municipales de Ahorro y Crédito) and its amendments

Supreme Decree Nº 07-94-EF (Aprueban el Estatuto del Banco de la Nación) and its amendments

Description: Peru may grant advantages or exclusive rights, without limitation, to one or more of the following financial entities, as long as they are partially or fully owned by the State: Corporación Financiera de Desarrollo (COFIDE), Banco de la Nación, Banco Agropecuario, Fondo Mivivienda, Cajas Municipales de Ahorro y Crédito, and the Caja Municipal de Crédito Popular.

Examples of such advantages are the following:

The Banco de la Nación and Banco Agropecuario are not required to diversify their risk; and

The Cajas Municipales de Ahorro y Crédito may directly sell collateral they repossess in cases of loan default, in accordance with pre-established procedures.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Securities Market Law (Ley del Mercado de Valores), approved by Legislative Decree N° 861 and its amendments, articles 130, 167, 185, 204, 223, 259, 269, 270, 302, 324, 354 and Seventeenth Final Provision

Legislative Decree N° 862, Law of the Investment Funds and their Management Corporations (Ley de Fondos de Inversión y sus Sociedades Administradoras) and its amendments; article 12

Law N° 26361, Law on Commodities Exchange (Ley sobre Bolsas de Productos) and its amendments, articles 2, 9 and 15

Law Decree N° 22014 (Empresas Administradoras de Fondos Colectivos se constituirán como Sociedades Anónimas), article 1

Consolidated Text of the Law of Private Pension Funds (Texto Único Ordenado de la Ley del Sistema Privado de Administración de Fondos de Pensiones), approved by Supreme Decree N° 054-97-EF, article 13; and the

Regulation of the Consolidated Text of the Law of Private Pension Funds (Reglamento del Texto Único Ordenado de la Ley del Sistema Privado de Administración de Fondos de Pensiones), approved by Supreme Decree Nº 004-98- EF, article 18

Description: Financial institutions established in Peru to supply financial services in the securities or commodities markets or financial services related to asset management, including pension fund managers, must be constituted under the laws of Peru. Therefore, financial institutions of another Party established in Peru to supply these financial services may not be established as branches or agencies.

Sector: Financial Services

Sub-Sector: All

Obligation Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: Creditors domiciled in Peru have legal preference with regard to the assets located in Peru of a branch of a foreign financial institution, in case of liquidation of the financial institution or its branch in Peru.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Insurance and insurance-related services

Obligation Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: Peru reserves the right to adopt or maintain measures that restrict the acquisition of obligatory insurance outside of Peru, or that require that obligatory insurance be purchased from suppliers established in Peru, such as "Compulsory Car Insurance" (Seguro Obligatorio de Accidentes de Transito - SOAT) and "Hazardous Work Supplementary Insurance" (Seguro Complementario de Trabajo en Riesgo). These restrictions shall not apply to any insurance committed by Peru under Annex 11-A (Cross-Border Trade).

Existing Measures: Law N° 27181, General Law of Land Transport and Traffic (Ley General de Transporte y Tránsito Terrestre) and its Regulation approved by Supreme Decree 024-2002-MTC

Law N° 26790, Law on the Modernization of the Social Security in Health (Ley de la Modernización de la Seguridad Social en Salud), and its Regulation approved by Supreme Decree N° 03-98-SA

Sector: Financial Services

Sub-Sector: Social services

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Description: Peru reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for a public purpose: income security and insurance, social security, social welfare, public education, public training, health and childcare.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Cross-Border Trade (Article 11.6)

Description: Peru reserves the right to adopt or maintain any measure based on reciprocal treatment, with respect to the services covered by Annex 11-A (Cross-Border Trade).

ANNEX III

SCHEDULE OF SINGAPORE

HEADNOTES

1. Commitments under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.

2. To clarify Singapore's commitment with respect to Article 11.5(b) (Market Access for Financial Institutions), juridical persons supplying financial services are subject to non discriminatory limitations on juridical form.

3. (a) Singapore reserves the right to require a foreign bank that is systemically important to incorporate within Singapore, provided that such a requirement is applied in a reasonable, objective and impartial manner. Before imposing such a requirement, Singapore will take into account such factors as the quality of home country regulation and supervision over the bank, degree of protection accorded to depositors in the home country vis-à-vis depositors in Singapore, and the amount of assets held or situated in Singapore.

(b) Singapore shall not impose the requirement described in subparagraph (a) with respect to a foreign bank of another Party, unless it:

(i) notifies the bank and the other Party of its intent at least six months before imposing the requirement;

(ii) consults with the other Party concerning the requirement and gives due consideration to the views expressed by the other Party in this respect; and

(iii) allows the bank a reasonable time to comply with the requirement.

4. Description sets out the non-conforming measure for which the entry is made.

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Banking Act, Cap. 19

Guidelines for Operation of Wholesale Banks

Guidelines for Operation of Offshore Banks

Description: No new full bank licences will be granted to foreign banks.

No foreign bank can have more than one place of business, establish off-premise ATMs, establish ATM networking or provide debit services through an Electronic Funds Transfer at Point of Sale (EFTPOS) network.

Wholesale Banks

Wholesale banks are not permitted to:

(a) accept Singapore dollar fixed deposits of less than S$250,000;

(b) offer savings accounts;

(d) issue Singapore dollar bonds and negotiable certificates of deposit, unless the requirements pertaining to minimum maturity period, minimum denomination or class of investors contained in the Guidelines for Operation of Wholesale Banks issued by the Monetary Authority of Singapore or its successor body are complied with.

Offshore banks

Offshore banks are not permitted to:

(a) provide credit facilities to non-bank residents of Singapore in Singapore dollars exceeding a total of S$500 million at any one time;

(b) offer savings account;

(d) operate current accounts for non-bank residents unless the accounts are offered:

(i) in connection with credit facilities granted to, or other business dealings with the customer; or

(ii) to customers of the bank's head office;

(e) operate interest-bearing Singapore dollar current accounts for natural persons who are Singapore residents;

(f) accept Singapore dollar fixed deposits of less than S$250,000 from non-bank non-residents; or

(g) issue Singapore dollar bonds and negotiable certificates of deposit, unless the requirements pertaining to minimum maturity period, minimum denomination or class of investors contained in the Guidelines for Operation of Offshore Banks issued by the Monetary Authority of Singapore or its successor body are complied with.

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures: Finance Companies Act, Cap. 108

Description: No new finance company licences will be granted.

Finance companies may only establish as Singapore incorporated companies.

Finance companies are not permitted to establish off-premise ATMs, ATM networking, or allow their accounts to be debited through an Electronic Funds Transfer at Point of Sale (EFTPOS).

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures: Banking Act, Cap. 19

Monetary Authority of Singapore Act, Cap. 186

Guidelines for Operation of Merchant Banks

Description: No merchant bank may establish more than one customer service location.

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Banking Act, Cap. 19

Central Provident Fund Act, Cap. 36

Description: Only foreign banks with Qualifying Full Bank privileges and local banks may apply to provide Supplementary Retirement Scheme accounts and Central Provident Fund Investment Scheme accounts.

Only foreign banks with Qualifying Full Bank privileges and local banks may apply to accept fixed deposits under the Central Provident Fund Investment Scheme and Minimum Sum Scheme.

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Banking Act, Cap. 19

Monetary Authority of Singapore Act, Cap. 186

Description: No foreign person shall, acting alone or in concert with other persons, assume control of any Singapore-incorporated bank or its financial holding company which is regulated by the Monetary Authority of Singapore (other than a Singapore incorporated bank or financial holding company that is controlled by a financial institution of another Party).

Approval from the Minister is required before a person, either alone or together with associated persons, is allowed to acquire indirect control over and shareholdings or voting control of or exceeding five per cent, 12 per cent or 20 per cent in a Singapore-incorporated bank or a financial holding company, and before a Singapore-incorporated bank or a financial holding company is merged or taken over by any other body.

In approving applications to exceed the threshold limits, the Minister may impose conditions that are considered necessary to prevent undue control, protect public interests, and ensure the integrity of the financial system.

A foreign person is a person that is:

(a) in the case of a natural person, not a citizen of Singapore; and

(b) in the case of a corporation, not controlled by citizens of Singapore.

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Banking Act, Cap. 19, MAS Notice No. 622 Banking (Corporate Governance) Regulations

Description: A majority of the directors of a bank incorporated in Singapore must be either Singapore citizens or Singapore permanent residents.

Sector: Financial Services

Sub-Sector: Settlement and clearing services for financial assets

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Banking Act, Cap. 19

Description: Only the clearing house established under the Banking Act may provide clearing services for cheques and other credit instruments which are drawn on a bank in Singapore (whether payable in Singapore dollars or other currency), and services for interbank GIRO transfers.

Sector: Financial Services

Sub-Sector:

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Measures:Securities and Futures Act, Cap. 289

Description: The establishment or operation of securities and futures markets as approved exchanges, recognised market operators or exempt market operators, is subject to the authorisation, including the imposition of conditions for authorisation, by the Monetary Authority of Singapore or its successor body.

In authorising such markets or in imposing conditions on the operations of such markets, Singapore may take into account factors including, but not limited to, market structure, fragmentation of liquidity, range of products offered and the type of investors targeted.

Sector: Financial Services

Sub-Sector: Asset management

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Admission Criteria, Guidelines and Application Forms for Fund Management and Insurance Companies included under Central Provident Fund Investment Scheme (CPFIS)

Description: In considering the admission of Fund Management Companies (FMCs) under the CPFIS, the Central Provident Fund Board or its successor body takes into consideration the following factors:

(a) whether the FMC has a minimum one-year track record as a capital markets services licence holder under the Securities and Futures Act, Cap. 289, in the fund management industry in Singapore while the group as a whole has a minimum three-year track record in fund management;

(b) whether the FMC manages at least S$500 million worth of funds in Singapore; and

(c) whether the FMC has a minimum of three fund managers, one of whom must have at least five years of fund management experience. For the purpose of this reservation, the definition of "fund manager" shall include portfolio managers, research analysts and traders.

Sector: Financial Services

Sub-Sector: Participation in all kinds of securities, including underwriting and placement as agent and provision of service related to such issues

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Banking Act, Cap. 19

Description: Banks' and merchant banks' membership on any securities exchange or futures exchange established in Singapore must be held through subsidiaries incorporated in Singapore.

Sector: Financial Services

Sub-Sector: Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Companies Act, Cap. 50

Description: Only the Central Depository Pte Ltd or its successor body is authorised to provide custodial services for book-entry securities.

Sector: Financial Services

Sub-Sector: Payment and non-money transmission services

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Money-Changing and Remittance Businesses Act, Cap. 187

Description: Remittance shops and money-changing businesses, except where the remittance or money-changing business is conducted by banks, merchant banks and finance companies, must be majority-owned by Singapore citizens, i.e., ownership of more than 50 per cent shareholding.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Admission Criteria, Guidelines and Application Forms for Fund Management and Insurance Companies included under Central Provident Fund Investment Scheme (CPFIS)

Description: In considering the admission of insurers under the CPFIS, the Board takes into consideration the following factors:

(a) whether the insurer is registered under the Insurance Act to carry on life insurance business;

(b) whether the insurer has a minimum one-year track record as a registered insurer in Singapore;

(c) whether the insurer employs a minimum of three fund management staff, one of whom have at least five years of fund management experience. The other two may only have two years of fund management experience if he or she:

(i) is a fully qualified Chartered Financial Analyst (CFA);

(ii) is an Associate of the Society of Actuaries;

(iii) holds a Certificate in Finance and Investments from the Institute of Actuaries; or

(iv) holds an equivalent qualification from any of the professional actuarial bodies recognised in Singapore.

Note: The above listed are the basic criteria for insurers to be included under CPFIS. The Board, in consultation with the Monetary Authority of Singapore, may consider an applicant for admission, on a case-by-case basis, if the applicant does not meet a specific criterion but has other strengths. Insurers that pass the qualifying criteria stated above will be allowed to offer new investment-linked insurance products (ILPs) and manage ILP sub-funds.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Insurance Act, Cap. 142

Description: All insurance brokers must be established as Singapore incorporated companies.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Insurance Act, Cap. 142

Description: Captive insurers may only establish as Singapore incorporated companies.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Motor Vehicles (Third Party Risks and Compensation) Act, Cap. 189

Work Injury Compensation Act, Cap. 354

Description: Compulsory insurance of Motor Third Party Liability and Workmen's Compensation can only be purchased directly or through an intermediary from registered insurers in Singapore.

Sector: All

Sub-Sector:

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Financial Advisers Act, Cap. 110

Insurance Act, Cap. 142

Description: The placement of domestic risks outside Singapore by brokers is subject to approval by the Monetary Authority of Singapore, with the exception of reinsurance risks and insurance risks relating to maritime liabilities of ship owners insured by a maritime mutual insurer, or marine, aviation and transit business insured with an approved MAT insurer.

Sector: All

Sub-Sector:

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Banking Act, Cap. 19, MAS Notice 757

Monetary Authority of Singapore Act, Cap. 186, MAS Notice 1105

Finance Companies Act, Cap. 108, MAS Notice 816

Insurance Act, Cap. 142, MAS Notice 109

Securities and Futures Act, Cap. 289, MAS Notice SFA 04-N04

Description: A non-resident financial institution may in certain circumstances be unable to borrow in Singapore dollars more than S$5 million from a resident financial institution owing to the following restrictions placed on financial institutions' lending of the Singapore dollar to non-resident financial institutions.

A financial institution shall not extend to any non-resident financial institution Singapore dollar credit facilities exceeding S$5 million per non-resident financial institution:

(a) where the Singapore dollar proceeds are to be used outside of Singapore, unless:

(i) such proceeds are swapped or converted into foreign currency upon draw-down or before remittance abroad; or

"Non-resident financial institution" means any financial institution which is not a resident as defined in the relevant notice.

Sector: All

Sub-Sector:

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Companies Act, Cap. 50

Description: Every Singapore-incorporated company shall have at least one director who is ordinarily resident in Singapore.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Banking

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Singapore reserves the right to adopt or maintain any measure affecting the supply of services by foreign banks with Qualifying Full Bank privileges, save that any such measures shall not decrease the Qualifying Full Bank privileges in respect of the supply of services enjoyed by foreign banks with Qualifying Full Bank privileges as of the date of entry into force of this Agreement.

Existing Measures: Banking Act, Cap. 19, MAS Notice 619

Sector: Financial Services

Sub-Sector: Settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Singapore reserves the right to adopt or maintain any measure affecting the supply of clearing and settlement services for exchange traded securities, financial futures and interbank transfers.

Existing Measures: Companies Act, Cap. 50

Securities and Futures Act, Cap. 289

Sector: Financial Services

Sub-Sector: Social services

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: Singapore reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and the following services to the extent that they are social services established or maintain for a public purpose: income security and insurance, social security, social welfare, social development, poverty reduction, public education, public training, health and childcare.

Existing Measures:

Sector: Financial Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Singapore reserves the right to adopt or maintain any measure in the form of subsidies or grants provided by Singapore that affects the supply of any financial service by any financial service supplier, which Singapore deems necessary:

(a) for the development of local small and medium enterprises; or

(b) to facilitate or enable the supply of any service to Singapore enterprises that is not being supplied in Singapore or that is not being supplied efficiently.

Existing Measures:

Sector: Financial Services

Sub-Sector:

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Singapore reserves the right to adopt or maintain any measure in the form of subsidies or grants provided by Singapore in connection with the supply of any financial service involving what Singapore deems as systemically important financial markets infrastructure, including:

(a) exchanges;

(b) central depositories;

(d) clearing and settlement facilities; and

(e) market operators.

Existing Measures:

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Level of Government: Central

Description: 1. Subject to paragraph 2, the obligation under Article 11.4 (Most-Favoured-Nation Treatment) shall only apply to differential treatment that is accorded to a country pursuant to a bilateral or multilateral international agreement that is signed and enters into force after the date of entry into force of this Agreement for Singapore and that is not pursuant or related to, or under any prior international agreements which Singapore has with that country.

2. Singapore reserves the right to adopt or maintain any measure that accords preferential treatment to the European Union pursuant to the European Union – Singapore Free Trade Agreement, initialled on 20 September 2013, including any subsequent amendments.

Existing Measures:

ANNEX III

SCHEDULE OF THE UNITED STATES

HEADNOTES

1. Commitments in these sub-sectors under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. National treatment commitments in these sub-sectors are subject to the following limitations:

(a) National treatment with respect to banking will be provided based upon the foreign bank's "home state" in the United States, as that term is defined under the International Banking Act, when that Act is applicable. A domestic bank subsidiary of a foreign firm will have its own "home state", and national treatment will be provided based upon the subsidiary's home state, as determined under applicable law.

(b) National treatment with respect to insurance financial institutions will be provided according to a non-U.S. insurance financial institution's state of domicile, when applicable, in the United States. State of domicile is defined by individual states, and is generally the state in which an insurer either is incorporated, is organised or maintains its principal office in the United States.

3. To clarify the U.S. commitment with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying banking or other financial services (excluding insurance) and constituted under the laws of the United States are subject to non discriminatory limitations on juridical form.2

4. For entries in Section A, in accordance with Article 11.10.1(a) (Non-Conforming Measures), and subject to Article 11.10.1(c) (Non-Conforming Measures), the Articles specified in the Obligations Concerned element of an entry do not apply to the non conforming aspects of the law, regulation or other measure identified in the Measures element of that entry, except to the extent that such non-conforming aspects are inconsistent with a Specific Commitment in Annex 11-B. In addition, Description provides a general, non-binding description of the measure for which the entry is made.

5. For entries in Section B, in accordance with Article 11.10.2 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, sub-sectors and activities identified in the Description element of that entry.

6. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to non-conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: 12 U.S.C. 72

Description: All directors of a national bank must be U.S. citizens except that the Comptroller of the Currency may waive the citizenship requirement for not more than a minority of the total number of directors.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: 12 U.S.C. 619

Description: Foreign ownership of Edge Act corporations is limited to foreign banks and U.S. subsidiaries of foreign banks, while domestic non-bank firms may own such corporations. Edge Act corporations are international financial vehicles chartered, supervised and examined by the Board of Governors of the Federal Reserve through which U.S. banking organisations may conduct certain activities abroad that are permissible to foreign banks abroad but may not otherwise be permissible to U.S. banks.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: 12 U.S.C. 1463 et seq.

12 U.S.C. 1751 et seq.

Description: Federal and state laws do not permit a credit union, savings bank, or savings association (both of the latter two entities may be also called thrift institutions) in the United States to be established through branches of corporations organized under a foreign country's law.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: 12 U.S.C. 3104(d)

Description: In order to accept or maintain domestic retail deposits of less than the standard maximum deposit insurance amount, and requiring deposit insurance protection, a foreign bank must establish an insured banking subsidiary. This requirement does not apply to a foreign bank branch that was engaged in insured deposit-taking activities on December 19, 1991.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: 15 U.S.C. 80b-2 and 80b-3

Description: Foreign banks are required to register as investment advisers under the Investment Advisers Act of 1940 to engage in securities advisory and investment management services in the United States, while domestic banks1 (or a separately identifiable department or division of the bank) do not have to register unless they advise registered investment companies. The registration requirement involves record maintenance, inspections, submission of reports and payment of a fee.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: 12 U.S.C. 221, 302 and 321

Description: Foreign banks cannot be members of the Federal Reserve System, and thus may not vote for directors of a Federal Reserve Bank. Foreign-owned bank subsidiaries are not subject to this measure.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: 12 U.S.C. 36(g)

12 U.S.C. 1828(d)(4)

12 U.S.C. 1831u

Description: The United States undertakes no commitment with respect to Article 11.5(b) (Market Access for Financial Institutions) in relation to the expansion, by a foreign bank into another state from its "home state," as that term is defined under applicable law, via:

(a) the establishment of a "de novo" branch in another state;

(b) the establishment of branches by merger with a bank in another state; or

if not permitted by the state in which the resulting branch is or would be located. Except as provided elsewhere in this Schedule, such expansion shall be accorded on a national treatment basis in accordance with paragraph 2(a) of the headnote.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: 12 U.S.C. 3102(a)(1)

12 U.S.C. 3102(d)

12 U.S.C. 3103(a)

Description: Establishment of a federal branch or agency by a foreign bank is not available in the following states that may prohibit establishment of a branch or agency by a foreign bank:

(a) branches and agencies may be prohibited in Kansas, Maryland, North Dakota and Wyoming; and

(b) branches, but not agencies, may be prohibited in Georgia, Missouri and Oklahoma. Certain restrictions on fiduciary powers apply to federal agencies.

Note: The cited federal measures provide that certain state law restrictions apply to the establishment of federal branches or agencies.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: 15 U.S.C. 77jjj(a)(1)

Description: The authority to act as a sole trustee of an indenture for a bond offering in the United States is subject to a reciprocity test.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: 22 U.S.C. 5341 and 5342

Description: Designation as a primary dealer in U.S. government debt securities is conditioned on reciprocity.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4)

Level of Government: Central

Measures: 15 U.S.C. 78o(c)

Description: A broker-dealer registered under U.S. law that has its principal place of business in Canada may maintain its required reserves in a bank in Canada subject to the supervision of Canada.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: 12 U.S.C. 1421 et seq. (Federal Home Loan Banks)

12 U.S.C. 1451 et seq. (Federal Home Loan Mortgage Corporation)

12 U.S.C. 1717 et seq. (Federal National Mortgage Association)

12 U.S.C. 2011 et seq. (Farm Credit Banks)

12 U.S.C. 2279aa-1 et seq. (Federal Agricultural Mortgage Corporation)

20 U.S.C. 1087-2 et seq. (Student Loan Marketing Association)

Description: The United States may grant advantages, including but not limited to the following, to one or more of the GovernmentSponsored Enterprises (GSEs) listed above:

(a) Capital, reserves and income of the GSE are exempt from certain taxation.

(b) Securities issued by the GSE are exempt from registration and periodic reporting requirements

under federal securities laws.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Regional

Measures: All existing non-conforming measures of all states, the District of Columbia and Puerto Rico

Description:

Pursuant to the measures referred to above, some U.S. states may, among other things:

(a) restrict or fail to provide an explicit mechanism for initial entry for the various juridical forms

(for example, subsidiary, branch, agency, representative office) through which foreign banks may obtain a state licence to conduct business activities within their territory;3 and

(b) impose citizenship requirements on some or all members of the boards of directors of statechartered depository institutions.

Additionally, states may impose restrictions or conditions upon the business activities with respect to juridical form; that is, with respect to a foreign bank operating in the state as a state-licensed or state-chartered incorporated entity, branch, agency or representative office.

Some of the above limitations may reflect state reciprocity requirements.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: 31 U.S.C. 9304

Description: Branches of foreign insurance companies are not permitted to provide surety bonds for U.S. Government contracts

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: 46 C.F.R. 249.9

Description: When more than 50 per cent of the value of a maritime vessel whose hull was built under federally guaranteed mortgage funds is insured by a non-U.S. insurer, the insured must demonstrate that the risk was substantially first offered in the U.S. market.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Regional

Measures: All existing non-conforming measures of all states, the District of Columbia and Puerto Rico. For purposes of transparency, Appendix III-B sets out an illustrative, nonbinding list of non-conforming measures maintained at the regional level of government.

APPENDIX III-A

LIST OF FOREIGN BANK STRUCTURES EXPLICITLY PROVIDED FOR AT THE

REGIONAL LEVEL OF GOVERNMENT

APPENDIX III-B

ILLUSTRATIVE LIST OF U.S. REGIONAL

NON-CONFORMING MEASURES AFFECTING INSURANCE5

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: With regard to the Federal Home Loan Banks, Federal Home Loan Mortgage Corporation and Federal National Mortgage Association, the United States reserves the right to adopt or maintain measures that grant advantages, including those described in the entry on page Annex III – United States – 14 to that entity, or any new, reorganised or transferee entity with similar functions and objectives with respect to housing finance.

Existing Measures: 12 U.S.C. 1421 et seq. (Federal Home Loan Banks)

12 U.S.C. 1451 et seq. (Federal Home Loan Mortgage Corporation)

12 U.S.C. 1717 et seq. (Federal National Mortgage Association)

ANNEX III

SCHEDULE OF VIET NAM

HEADNOTES

1. Commitments in these sub-sectors under Chapter 11 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. To clarify Viet Nam's commitments with respect to Article 11.5 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws, regulations and guidelines of Viet Nam are subject to non-discriminatory limitations on juridical form.

3. Article 11.10.1(c) (Non-Conforming Measures) shall not apply to non-conforming measures relating to Article 11.5(b) (Market Access for Financial Institutions).

4. For entries in Section A, all elements of the entry shall be considered in their totality for the purposes of its interpretation. Where there is any inconsistency in relation to the interpretation of an entry, the Description element of the entry shall prevail to the extent of the inconsistency.

5. For entries in Section B, where an inconsistency arises in relation to the interpretation of an entry, the Description element of the entry shall prevail to the extent of the inconsistency.

6. For greater certainty, limitations on the participation of foreign capital in terms of maximum percentage limits on foreign shareholding or the total value of individual or aggregate foreign investment should not be considered a limitation to Article 11.5 (Market Access for Financial Institutions).

ANNEX III

Section A

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding securities and insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law No.47/2010/QH12 on Credit Institutions 2010

Decree No.39/2014/ND-CP of the Government on operation of finance company and financial leasing company

Circular No.40/2011/TT-NHNN of the State Bank of Viet Nam on licensing, organisation and operations of commercial banks, branches of foreign banks, representative offices of foreign credit institutions, other foreign institutions engaged in banking

Description: Foreign credit institutions are only permitted to establish commercial presence in Viet Nam in the following forms:

(a) With respect to foreign commercial banks: representative office, branch of foreign commercial bank, commercial joint venture bank with foreign capital contribution not exceeding 50 per cent of chartered capital, joint venture financial leasing company, 100 per cent foreign-invested financial leasing company, joint venture finance company and 100 per cent foreign-invested finance company, and 100 per cent foreign-owned banks.

(b) With respect to foreign finance companies: representative office, joint venture finance company, 100 per cent foreign-invested finance company, joint venture financial leasing company and 100 per cent foreign-invested financial leasing company.

(c) With respect to foreign financial leasing companies: representative office, joint venture financial leasing company and 100 per cent foreign-invested financial leasing company.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding securities and insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law No.47/2010/QH12 on Credit Institutions 2010; Decree No.01/2014/NĐ-CP of the Government on acquiring shares of Viet Nam's commercial banks

Description: Total equity held by foreign institutions and individuals in each Viet Nam's joint-stock commercial bank may not exceed 30 per cent of the bank's chartered capital, unless otherwise provided by Viet Nam's laws or authorised by a Viet Nam's competent authority.

Equity held by a foreign strategic investor3 and its affiliated persons in each Viet Nam's joint-stock commercial bank may not exceed 20 per cent of the bank's chartered capital.

In special cases to implement the restructuring of weak credit institutions for the sound banking system, the Prime Minister will decide the total shareholding of foreign investors in a restructured weak credit institution that might exceed the set ceiling proportion on a case-by-case basis.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding securities and insurance)

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Law No.47/2010/QH12 on Credit Institutions 2010

Decree no. 39/2014/ND-CP of the Government on operation of finance company and financial leasing company

Circular 40/2011/TT-NHNN of the State Bank of Viet Nam on licensing, organisation and operations of commercial banks, branches of foreign banks, representative offices of foreign credit institutions, other foreign institutions engaged in banking

Description: The conditions for the establishment of a branch of a foreign commercial bank in Viet Nam: the parent bank has total assets of more than US$20 billion at the end of the year prior to application.

The conditions for the establishment of a joint venture bank or a 100 per cent foreign-owned bank in Viet Nam: the parent bank has total assets of more than US$10 billion at the end of the year prior to application.

The conditions for the establishment of a 100 per cent foreign invested finance company or a joint venture finance company, a 100 per cent foreign-invested financial leasing company or a joint-venture financial leasing company in Viet Nam: the foreign credit institution has total assets of more than US$10 billion at the end of the year prior to application.

Only a natural person who has the nationality of Viet Nam can be allowed to be a founding shareholder of joint stock commercial banks.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding securities and insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law No.47/2010/QH12 on Credit Institutions 2010

Description: A foreign credit institution or a foreign institution engaged in a banking operation shall only be permitted to establish one representative office in each province or city under the central authority.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding securities and insurance)

Obligations Concerned: Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Measures: Law No.47/2010/QH12 on Credit Institutions 2010

Description: General directors (directors), deputy general directors (deputy directors), chief accountants, directors of branches and directors of subsidiary companies and people assuming equivalent positions must reside in Viet Nam during their term of office whenever they assume the positions in the Board of Directors of a credit institution.

Sector: Financial Services

Sub-Sector: Banking and other financial services (excluding securities and insurance)

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law No.47/2010/QH12 on Credit Institutions 2010 Decree No.141/2006/ND-CP on list of legal capital for credit institutions

Decree No.10/2011/ND-CP amending and supplementing some articles of Decree No.141/2006/ND-CP on list of legal capital for credit institutions

Circular No.21/2013/TT-NHNN on the operational networks of commercial banks

Description: A foreign bank branch shall not be permitted to: (i) either contribute capital or purchase shares; (ii) carry out activities that the foreign bank is not allowed to conduct in its home country; and (iii) open a transaction point4 in any form outside its location which is stated in the establishment licence.

Prudential ratios of a foreign bank branch in Viet Nam must be calculated based on its regulatory capital, which must be located in Viet Nam.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Measures: Law No.24/2000/QH10 on Insurance Business

Description: Foreign natural persons are not allowed to supply insurance agency services in Viet Nam.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Measures: Law No.61/2010/QH12 amending and supplementing some articles of the Law on Insurance Business

Decree No.123/2011/NĐ-CP detailing the implementation of a number of articles of the Law amending and supplementing some articles of the Law on Insurance Business and amending and supplementing a number of articles of the Decree No.

45/2007/ND-CP detailing the implementation of a number of articles of the Law on Insurance Business

Description: Foreign insurance company supplying cross border insurance services not covered in Viet Nam's Annex 11-A (Cross Border Trade) shall only conduct business via an insurance broker which has the licence to establish and operate in Viet Nam.

Foreign insurance broker when supplying cross-border insurance services not covered in Viet Nam's Annex 11-A (Cross-Border Trade) shall only conduct business for insurance company or branch of foreign non-life insurance company which has licence of establishment and operation in Viet Nam.

Sector: Financial Services

Sub-Sector: Securities

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Measures: Law No.70/2006/QH11 on Securities

Law No.62/2010/QH12 amending and supplementing a number of articles of the Law on Securities

Description: The Viet Nam Securities Depository (VSD) is the only organisation authorised to act as a Central Securities Depository (CSD) which typically supplies services on registration, depository, clearing and settlement of securities and securities transactions.

ANNEX III

Section B

Sector: Financial Services

Sub-Sector: Banking and other financial services

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Description: Viet Nam reserves the right to adopt or maintain any measure relating to the equitisation of state-owned commercial banks and restructuring process of credit institutions in Viet Nam.

Existing Measures: Law No.47/2010/QH12 on Credit Institutions 2010

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Description: Viet Nam may grant advantages or exclusive rights to one or more development financial institutions, co-operative banks, people's credit funds and microfinance institutions including but not limited to Viet Nam Bank for Social Policies, Viet Nam Development Bank, Co-operative Bank of Viet Nam, Bank for Agriculture and Rural Development of Viet Nam, and Mortgage Refinance Bank.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Without limiting Viet Nam's obligations under Article 11.7 (New Financial Services), Viet Nam may impose a pilot testing program for a new financial service and in doing so may impose either a cap on the number of financial service suppliers that may participate in a pilot testing programme or restrictions on scope of pilot testing programme.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: To the extent of financial services not committed under Viet Nam's Annex 11-A (Cross-Border Trade), Viet Nam reserves the right to adopt or maintain any measure with respect to the purchase of financial services by persons located in Viet Nam from financial service suppliers abroad.

Sector: Financial Services

Sub-Sector: All

Obligations Concerned: National Treatment (Article 11.3)

Most-Favoured-Nation Treatment (Article 11.4)

Market Access for Financial Institutions (Article 11.5)

Cross-Border Trade (Article 11.6)

Senior Management and Boards of Directors (Article 11.9)

Level of Government: Central

Description: Viet Nam reserves the right to adopt or maintain any measure including but not limited to financial support, such as government-supported loans, guarantees and insurance with respect to activities for a public purpose: income security and insurance, social security, social welfare, social development, social housing, poverty reduction, public education, public training, health, childcare, promoting the welfare and employment of ethnic minorities and people living in disadvantaged areas, small and medium enterprises' development, and granting of one-time subsidisation to promote and facilitate the process of equitisation.

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: In addition to the general conditions for being granted the establishment and operation licence, financial service suppliers or investors of a Party asking for the permission to establish foreign insurance enterprises, foreign insurance brokerage enterprises and reinsurance enterprises must satisfy a number of additional conditions on minimum years of experience, value of total assets, making profits and no violation of the laws and regulations on insurance business or of other laws of the country where it has its head office.

Existing Measures: Law No.24/2000/QH10 on Insurance Business

Decree No.45/2007/NĐ-CP detailing the implementation of some articles of the Law on Insurance Business

Law No.61/2012/QH12 amending and supplementing some articles of the Law on Insurance Business

Circular No.124/2012/TT-BTC guiding the implementation of a number of articles of the Decree No.45/2007/NĐ-CP detailing the implementation of some articles of the Law on Insurance Business and Decree No.123/2011/NĐ-CP detailing the implementation of a number of articles of the Law amending and supplementing some articles of the Law on Insurance Business

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Cross-Border Trade (Article 11.6)

Level of Government: Central

Description: In addition to the general conditions for supplying reinsurance services, a foreign reinsurance company must satisfy an additional condition on required credit ratings.

Existing Measures: Law No.61/2010/QH12 amending and supplementing some articles of the Law on Insurance Business

Circular No.124/2012/TT-BTC guiding the implementation of a number of articles of the Decree No.45/2007/NĐ-CP detailing the implementation of some articles of the Law on Insurance Business and the Decree No.123/2011/NĐ-CP detailing the implementation of a number of articles of the Law amending and supplementing some articles of the Law on Insurance Business

Sector: Financial Services

Sub-Sector: Insurance

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Description: No foreign insurance company except a foreign non-life insurance company is permitted to open branches in Viet Nam.

In order to be granted the licence for the establishment of a non-life insurance branch in Viet Nam, a foreign non-life insurance company must satisfy the conditions under Vietnamese law, including:

(a) operational and financial capacity and branch management and supervisory capacity in Viet Nam of foreign non-life insurance company; and

(b) cooperation between the foreign insurance administrative body of the country where the company head office is located and the Vietnamese insurance administrative body in managing and supervising the branch of foreign non-life insurance company in Viet Nam.

Existing Measures: Decree No.123/2011/NĐ-CP detailing the implementation of a number of articles of the Law amending and supplementing some articles of the Law on Insurance Business and amending and supplementing a number of articles of the Decree No.45/2007/ND-CP detailing the implementation of a number of articles of the Law on Insurance Business

Sector: Financial Services

Sub-Sector: Securities

Obligations Concerned: Market Access for Financial Institutions (Article 11.5) Level of Government: Central

Description: The operation and services provided by branches of a foreign securities company and a fund management company in Viet Nam are subject to approval of the Government of Viet Nam, including the imposition of conditions for the approval.

Existing Measures: Law No.70/2006/QH11 on Securities

Law No.62/2010/QH12 amending and supplementing a number of articles of the Law on Securities

Decree No.58/2012/ND-CP dated 20/7/2012 detailing and guiding the Law on Securities and amendments thereof

Sector: Financial Services

Sub-Sector: Securities

Obligations Concerned: National Treatment (Article 11.3)

Level of Government: Central

Description: Foreign participation from above 49 per cent to less than 100 per cent of charter capital of a securities company and a fund management company in Viet Nam is subject to the approval of the Government of Viet Nam, including the imposition of conditions for the approval.

This entry will be deemed to be a Section A entry under Article 11.10 (Non-Conforming Measures) in five years from the date of entry into force of this Agreement for Viet Nam.

Existing Measures: Law No.70/2006/QH11 on Securities

Law No.62/2010/QH12 amending and supplementing a number of articles of the Law on Securities Articles 1, 2 and 3 of Decision No.55/2009/QĐ-TTg on percentage of participation of foreign investors in securities market of Viet Nam

Sector: Financial Services

Sub-Sector: Securities

Obligations Concerned: National Treatment (Article 11.3)

Market Access for Financial Institutions (Article 11.5)

Level of Government: Central

Description: Viet Nam reserves the right to adopt or maintain any measure relating to the establishment, ownership and operation of regulated securities markets and associated infrastructure, including but not limited to Central Securities Depository (including registration, depository, clearing and settlement), Central Counterparty (CCP), Securities Trading Center/Stock and Derivatives Exchanges (including transactions system and infrastructure), Electronic Communication Networks (ECNs) and the designation of a settlement bank. For greater certainty, this reservation does not apply to financial institutions participating in, or seeking to participate in any such regulated markets, or accessing such associated infrastructure, to provide a financial service.

Existing Measures:

Sector: Financial Services

Sub-Sector: Securities

Obligations Concerned: Most-Favoured-Nation Treatment (Article 11.4) Level of Government: Central

Description: Viet Nam reserves the right to provide differential treatment to a Foreign Central Securities Depository (CSD) with respect to its membership in or interactions with the Viet Nam Securities Depository (VSD), including the designation of settlement bank, according to agreement between the CSD and VSD.

Existing Measures:

Annex IV-State-Owned Enterprises and Designated Monopolies Non-Conforming Measures

ANNEX IV

EXPLANATORY NOTES

1. The Schedule of a Party to this Annex sets out, pursuant to Article 17.9.1 (Party Specific Annexes), the non-conforming activities of a state-owned enterprise or designated monopoly, with respect to which some or all of the following obligations shall not apply:

(a) Article 17.4 (Non-discriminatory Treatment and Commercial Considerations); and

(b) Article 17.6 (Non-commercial Assistance).

2. Each Schedule entry sets out the following elements:

(a) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 17.9.1 (Party-Specific Annexes), shall not apply to the non-conforming activities of the state-owned enterprise or designated monopoly, as set out in paragraph 3;

(b) Entity identifies the state-owned enterprise or designated monopoly that undertakes the non-conforming activities for which the entry is made;

(c) Scope of Non-conforming Activities provides a description of the scope of non-conforming activities of the state-owned enterprise or designated monopoly for which the entry is made; and

(d) Measures identifies, for transparency purposes, a non-exhaustive list of the laws, regulations or other measures pursuant to which the state-owned enterprise or designated monopoly engages in the non-conforming activities for which the entry is made.

3. In accordance with Article 17.9.1 (Party-Specific Annexes), the articles of this Agreement specified in the Obligations Concerned element of an entry shall not apply to the non-conforming activities (identified in the Scope of Non-conforming Activities element of that entry) of the state-owned enterprise or designated monopoly (identified in the Entity

element of that entry).

ANNEX IV

SCHEDULE OF AUSTRALIA

Obligations Concerned:

Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), in relation to the purchase of a good or service

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: All existing and future state-owned enterprises at the central level of government. Scope of Non-Conforming Activities: The Entity may accord more favourable treatment to Indigenous persons and organisations in the purchase of goods and services. For the purposes of this reservation, an Indigenous person means a person of the Aboriginal and Torres Strait Islander peoples.

ANNEX IV

SCHEDULE OF BRUNEI DARUSSALAM

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to the purchase of services

Entity: All state-owned enterprises engaged in the petroleum industry.

Scope of Non-conforming Activities:

Unless as may otherwise be authorised, the Government of Brunei Darussalam may require an Entity involved in the petroleum industry within the territory of Brunei Darussalam to purchase the services listed in Appendix A to Annex I – Brunei Darussalam – 36 either from:

(a) Brunei nationals or enterprises; or;

(b) foreign nationals or enterprises under an arrangement or contract, provided they engage Brunei nationals or enterprises to provide these services.

The preferences to services described above are granted pursuant to the entry at Annex I – Brunei Darussalam – 36. For greater certainty, Brunei has not scheduled against Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations) for these preferences by virtue of Article 17.2.11 (Scope).

Measures: Local Business Development Directive No. 2 of the Energy Department, Prime Minister's Office

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to the sale of goods or services.

Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to the sale of goods or services.

Entity: All state-owned enterprises or designated monopolies engaged in the supply of natural gas or manufactured petrochemical products and their derivatives.

Scope of Non-conforming Activities:

Brunei Darussalam may require the Entity to accord preferential rates in the sale of natural gas or manufactured petrochemical products and their derivatives:

(a) for the purposes of power generation;

(b) promoting foreign investment; or

Obligations Concerned: Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Brunei National Petroleum Company Sdn. Bhd., PB Trading Sdn. Bhd. and PB Services Sdn. Bhd. and their successors.

Scope of Non-conforming Activities:

Brunei Darussalam may provide non-commercial assistance to the Entity with respect to its supply of the following services:

(a) marketing of crude oil, liquefied natural gas, methanol and other petroleum products;

(b) drilling mud supply services;

(d) wireline services; and

(e) asset integrity repair and maintenance services in the oil and gas industry, including power

generation services.

Transition Period: This entry shall cease to have effect three years after entry into force of this Agreement for Brunei Darussalam.

Obligations Concerned: Article 17.4 (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6 (Non-commercial Assistance)

Entity: Brunei Investment Agency and any other special purpose investment fund owned by the Brunei Investment Agency, or the Government of Brunei Darussalam that engages exclusively in the scope of activities described below.

Scope of Non-conforming Activities: Investment and asset management, using the financial assets of the Government of Brunei Darussalam.

Brunei Darussalam has been an observer of the Working Group of the International Forum of Sovereign Wealth Funds ("the Forum") and is exploring membership of the Forum.

ANNEX IV

SCHEDULE OF CANADA

Obligations Concerned: Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.1(c) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Article 17.6.2(c) (Non-commercial Assistance)

Entity:

Bridge Authorities that manage international crossings, or any new, reorganised or transferee enterprise, with similar functions and objectives, that engage in the activities described below.

The Bridge Authorities that manage international crossings are the Federal Bridge Corporation Limited and the Windsor-Detroit Bridge Authority.

Scope of Non-Conforming Activities:

Canada, its state enterprises or state-owned enterprises may provide the Entity or Entities with appropriations or assistance from funding programmes to manage international crossings, including the design, construction, operation and maintenance of the Entity's or Entities' crossings and any related infrastructure, which may involve the supply of services or commercial establishment outside the territory of Canada.

Measures: International Bridges and Tunnels Act, S.C. 2007, c. 1 (and regulations thereof)

And including any future amendments.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial or housing-related services

Article 17.4.1(b)(i) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial or housing-related services

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial or housing-related services

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Canada Mortgage and Housing Corporation and Canada Housing Trusts, or any new, reorganised or transferee enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity or Entities may take into account factors other than commercial considerations in the provision of financial or housing-related services such as:

(a) guarantees, mortgage insurance, loans and mortgage-backed securities; and

(b) management of nursing homes, retirement homes, on-reserve and rental housing and ancillary infrastructure,

in furtherance of the mandate to support housing needs and housing affordability in Canada as set out in laws, regulations, policies or programmes.

With respect to Article 17.4.1(b)(i) and Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations) and as set out in applicable laws and regulations, policies or programmes, the Entity or Entities may:

(a) provide financial or housing-related services such as mortgage insurance, loans and advisory services only to enterprises in Canada or provide such services to enterprises in certain other countries; and

(b) purchase financial or housing-related services from enterprises in certain other countries.

With respect to Article 17.6.1(b) (Non-commercial Assistance), Canada may provide the Entity or Entities with non-commercial assistance with respect to its supply of financial or housing-related services from Canada into the territory of another Party as set out in applicable laws, regulations, policies or programmes.

Measures: Canada Mortgage and Housing Corporation Act, R.S.C. 1985, c. C-7

National Housing Act, R.S.C. 1985, c. N-11(and regulations thereof)

And including any future amendments.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Canada

Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Canada

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: The Canadian Broadcasting Corporation (CBC), Telefilm Canada, and any new, reorganised or transferee enterprise related to cultural industries.

Scope of Non-Conforming Activities: Canadian Broadcasting Corporation

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the CBC may take into account factors other than commercial considerations, and may accord preferences in its purchase and sale of goods and services to Canadian products, suppliers and persons, including:

(a) originate programmes, secure programmes from within or outside Canada by purchase, exchange or otherwise and make arrangements necessary for their transmission;

(b) make contracts with any person, within or outside Canada, in connection with the production or presentation of programmes originated or secured by the CBC;

(c) produce, distribute and sell such consumer products as may seem conducive to the attainment of the objects of the CBC; and

(d) do all such other things as the Board deems incidental or conducive to the attainment of the objects of the CBC.

The preferences to goods and services described above are granted pursuant to Annex II – Canada – 16 (Cultural Industries). For greater certainty, Canada has not scheduled against Article 17.4.1(b), Article 17.4.1(c), Article 17.4.2(b) and Article 17.4.2(c) (Non-discriminatory Treatment and Commercial Considerations) for these preferences by virtue of Article 17.2.11 (Scope).

With respect to Article 17.6.1(a), Article 17.6.1(b), Article 17.6.2(a) and Article 17.6.2(b) (Non-commercial Assistance), Canada or the CBC may provide non commercial assistance with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Canada and the supply of a service from Canada to the territory of another Party.

Telefilm Canada

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), Telefilm Canada may take into account factors other than commercial considerations and may accord preferences in its purchase and sale of services to Canadian products, suppliers and persons, including:

(a) make loans to producers of individual Canadian productions and charge interest on those loans; and

(b) advise and assist Canadian producers in the distribution of their works and in the administrative functions of film production.

The preferences to goods and services described above are granted pursuant to Annex II – Canada – 16 (Cultural Industries). For greater certainty, Canada has not scheduled against Article 17.4.1(b), Article 17.4.1(c), Article 17.4.2(b) and Article 17.4.2(c) (Non-Discriminatory Treatment and Commercial Considerations) for these preferences by virtue of Article 17. 2.11 (Scope).

With respect to Article 17.6.1(b) and Article 17.6.2(b) (Non commercial Assistance), Canada or Telefilm Canada may provide non-commercial assistance with respect to the supply a service from Canada to the territory of another Party.

A new, reorganised or transferee enterprise

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), a new, reorganised or transferee enterprise related to cultural industries may take into account factors other than commercial considerations, and may accord preferences in its purchase and sale of goods and services to Canadian products, suppliers and persons.

With respect to Article 17.6.1(a), Article 17.6.1(b), Article 17.6.2(a) and Article 17.6.2(b) (Non-commercial Assistance), Canada or a new, reorganised or transferee enterprise related to cultural industries may provide non commercial assistance with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Canada and the supply of a service from Canada to the territory of another Party.

For the purpose of this reservation, "cultural industries" means persons engaged in any of the following activities:

(b) the production, distribution, sale or exhibition of film or video recordings;

(d) the publication, distribution or sale of music in print or machine readable form; or

Measures: Broadcasting Act, S.C. 1991, C. 11

Telefilm Canada Act, R.S.C. 1985, c. C-16

(and regulations thereof)

And including any future amendments.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Canadian Commercial Corporation, or any new, reorganised or transferee enterprise, with similar functions and objectives, that engages in the activities described below.

Scope of Non-Conforming Activities: With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity or Entities may restrict the sale of services associated with facilitating the import or export of goods or services to enterprises located within Canada as set out in applicable laws, regulations, policies and practices.

With respect to Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), the Entity or Entities may accord preferences in the sale of services associated with facilitating the import or export of goods or services to or from certain countries based on bilateral arrangements with the relevant country.

With respect to Article 17.6.1(b) (Non-commercial Assistance), Canada may provide the Entity or Entities with non-commercial assistance with respect to its supply of a service from Canada into the territory of another Party associated with facilitating the import or export of goods and services, as set out in applicable laws, regulations and policies.

Measures: Canadian Commercial Corporation Act, R.S.C. 1985, c. C14 (and regulations thereof)

And including any future amendments.

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Canada

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Canadian Dairy Commission, or any new, reorganised or transferee enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities: With respect to Article 17.6.1(a) (Non-commercial Assistance), Canada may provide the Entity or Entities with non-commercial assistance with respect to the production and sale of dairy products in the territory of Canada pursuant to the Canadian Dairy Commission Act.

With respect to Article 17.6.1(b) (Non-commercial Assistance), Canada may provide the Entity or Entities with non-commercial assistance regarding services related to the cross-border trade of dairy products (export and import) such as shipping, insuring and wholesale trade and distribution, pursuant to the Canadian Dairy Commission Act.

Measures: Canadian Dairy Commission Act, R.S.C. 1985, c. C-15 (and regulations thereof)

And including any future amendments.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) with respect to the purchase of a good or service

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: All existing and future state-owned enterprises

Scope of Non-Conforming Activities: The Entity or Entities may accord more favourable treatment to aboriginal persons and organisations in the purchase of goods and services.

Measures: Constitution Act, 1982, being Schedule B of the Canada Act 1982 (U.K.), 1982, c. 11

ANNEX IV

SCHEDULE OF CHILE

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Chile.

Entity: Empresa Nacional del Petróleo (ENAP) or its successor, its subsidiaries and affiliates.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(b), the Entity may accord preferential treatment in its purchases of energy products, such as hydrocarbons or electric power from any source of generation, for resale in remote or underserved areas of Chile.

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), and Article 17.4.1(c)(i), the Entity may accord preferential treatment in its sales of energy products, such as hydrocarbon products or electric power from any source of generation, to consumers in remote or underserved areas of Chile.

With respect to Article 17.6.1(a) (Non-commercial Assistance), the Entity may receive non-commercial assistance with respect to the production and sale of energy products, such as hydrocarbon products or electric power from any source of generation, for the purpose of ensuring adequate power supply in remote or underserved areas of Chile.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Chile.

Entity: Corporación Nacional del Cobre (CODELCO) or its successor, its subsidiaries and affiliates.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) (Non- discriminatory and Commercial Considerations) and Article 17.4.1(b), the Entity may accord preferential treatment to enterprises in the territory of Chile in up to 10 per cent of the total value of its annual purchases of goods and services.

With respect to Article 17.6.1(a) (Non-commercial Assistance), the Entity may receive non-commercial assistance with respect to the production and sale of mineral resources or by-products in the territory of Chile.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Chile

Entity: Empresa Nacional de Minería (ENAMI) or its successor, its subsidiaries and affiliates.

Scope of Non- Conforming Activities: With respect to Articles 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(b), the Entity may, pursuant to laws or regulations, accord preferential treatment in its purchases of minerals from small and medium-sized Chilean producers.

With respect to Articles 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(c)(i), the Entity may, pursuant to laws or regulations, provide technical support and financial services under preferential terms, to small and medium-sized Chilean producers.

With respect to Article 17.6.1(a) (Non-commercial Assistance), the Entity may receive non-commercial assistance for the purpose of maintaining its activities in support of small and medium-sized Chilean producers through the purchase of minerals and the supply of technical support and financial services.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: Empresa de Transporte de Pasajeros Metro S.A. (METRO) or its successor, its subsidiaries and affiliates.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(b), the Entity may accord preferential treatment to enterprises in the territory of Chile in up to 10 per cent of the total value of its annual purchases of goods and services.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Televisión Nacional de Chile (TVN) or its successor, its subsidiaries and affiliates.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(b), the Entity may, pursuant to laws or regulations, accord preferential treatment to Chilean content and products in its purchases of programming content.

With respect to Article 17.6.1(b) (Non-commercial Assistance), the Entity may receive non-commercial assistance for the supply of television broadcasting services that are intended principally for the Chilean domestic market.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial services

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial services

Entity: Banco del Estado de Chile (BANCOESTADO) or its successor, its subsidiaries and affiliates.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(c)(i), the Entity may, pursuant to laws or regulations, accord preferential treatment in the supply of financial services to underserved segments of the population in Chile, provided that such financial services are not intended to displace or impede financial services provided by privately-owned enterprises from the relevant market.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: All existing and future state-owned enterprises.

Scope of Non- Conforming Activities: Existing and future state-owned enterprises may accord preferential treatment to indigenous people and their communities in the purchase of goods and services.

For the purpose of this entry, indigenous people and their communities are those recognised under Law 19.253 of the Ministry of Planning and Cooperation, or its successor.

ANNEX IV

SCHEDULE OF MALAYSIA

HEADNOTES

1. Commitments under Chapter 17 (State-owned Enterprises and Designated Monopolies) are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedule below.

2. The preferences referred to in Annex IV – Malaysia – 2 shall not collectively comprise more than 40 per cent of the total value of a state-owned enterprise's annual budget for purchases of goods and services for use in its commercial activities in the territory of Malaysia.

3. Paragraph 2 shall not apply to the following entities with respect to the purchase of goods and services directly related to the scope of business activities indicated below:

(a) Majlis Amanah Rakyat (MARA) – developing, encouraging, facilitating and fostering Bumiputera development such as in the areas of entrepreneurship, education and investment;

(b) Unit Peneraju Agenda Bumiputera (TERAJU) – leading and coordinating the Bumiputera Agenda with the aim of increasing sustainable Bumiputera participation and involvement in the national economy; and

(c) Ekuiti Nasional Berhad (EKUINAS) – the purchase and sale of equity for the purpose of delivering financial value on its investments and enhance equitable Bumiputera participation in the Malaysian economy.

Obligations Concerned: Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(a) and (b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance) and 17.6.2(a), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Malaysia.

Entity: All state-owned enterprises and designated monopolies

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) and (b) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.2(a) and (b) (Non-discriminatory Treatment and Commercial Considerations), Malaysia may require the Entity to accord preferential treatment in its purchases of goods or services for use in its commercial activities in the territory of Malaysia to goods or services sold by:

(a) Bumiputera enterprises, pursuant to measures implementing Bumiputera Affirmative Action;

(b) enterprises located in the states of Sabah and Sarawak, pursuant to measures with the objective of promoting economic development in those states; and

This reservation shall not apply with respect to Petroliam Nasional Berhad (PETRONAS), its subsidiaries or any new, reorganised or successor enterprise, when engaging in upstream activities in the oil and gas sector.

With respect to Article 17.6.1(a) (Non-commercial Assistance) and 17.6.2(a), Malaysia, its state enterprises or state-owned enterprises may provide non-commercial assistance to Bumiputera enterprises, pursuant to measures implementing Bumiputera Affirmative Action.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: Petroliam Nasional Berhad (PETRONAS), its subsidiaries or any new, reorganised or successor enterprise.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and 17.4.1(b), the Entity may accord preferences to Malaysian enterprises in its purchase of goods or services when engaging in upstream activities in the oil and gas sector in the territory of Malaysia except for the following goods or services:

(a) Seismic Data Acquisition;

(b) Directional Drilling Services, Gyro While Drilling Services, Measurement While Drilling Services and Logging While Drilling Services;

(d) Gas Turbines and Related Maintenance and Repair Services;

(e) Control Valve Services;

(f) Oil Country Tubular Goods;

(g) Induction Motors Services;

(h) Distributed Control System (DCS) Services; (i) Transformer Services;

(j) Structural Steel;

(k) Linepipes; and

(l) Process Pipes.

For the first year after signature of this Agreement, the preferences referred to above shall not comprise more than 70 per cent of the total value of the Entity's annual budget for purchases of goods and services for use in its upstream activities in the territory of Malaysia.

For the second and third years after signature of this Agreement, the preferences shall not comprise more than 65 per cent of the total value of the Entity's annual budget for purchases of goods and services for use in its upstream activities in the territory of Malaysia.

For the fourth year after signature of this Agreement, the preferences shall not comprise more than 60 per cent of the Entity's annual budget for purchases of goods and services for use in its upstream activities in the territory of Malaysia.

For the fifth year after signature of this Agreement, the preferences shall not comprise more than 50 per cent of the Entity's annual budget for purchases of goods and services for use in its upstream activities in the territory of Malaysia.

For the sixth year after signature of this Agreement and thereafter, the preferences shall not comprise more than 40 per cent of the Entity's annual budget for purchases of goods and services for use in its upstream activities in the territory of Malaysia.

Note: Petroleum Development Act 1974 (PDA 1974) vested PETRONAS with the entire ownership in, and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining and commercialising of conventional and unconventional petroleum and hydrocarbon resources, whether onshore or offshore of Malaysia.

In addition, pursuant to PDA 1974, PETRONAS is designated as the sole entity that may award petroleum arrangements and other related contracts for exploration, development and production activities in Malaysia.

Parties recognise that the fact that PETRONAS is the sole authority designated to award petroleum arrangements and other related contracts to other companies to engage in exploration, development and production of petroleum and hydrocarbon resources does not mean that PETRONAS is a designated monopoly for the purposes of Article 17.4.2 (Non discriminatory Treatment and Commercial Considerations).

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c) (Non-discriminatory Treatment and Commercial Considerations)

Entity: Petroliam Nasional Berhad (PETRONAS), its subsidiaries or any new, reorganised or successor enterprise.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity may sell natural gas and its byproducts at below market rates:

(a) to consumers in the power or non-power sector or to residential consumers, in the territory of Malaysia for the purpose of ensuring adequate supply and affordable prices for the general public; and

(b) to the general public in the territory of Malaysia for the use of Natural Gas Vehicles for the purpose of

promoting the use of gas fuel for environmental purposes.

With respect to Article 17.4.1(c) (Non-discriminatory Treatment and Commercial Considerations), Malaysia may accord preferences to Malaysian persons in the sale of such goods.

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Petroliam Nasional Berhad (PETRONAS), its subsidiaries or any new, reorganised or successor enterprise.

Scope of Non-Conforming Activities:

With respect to Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.1(b), Malaysia may provide the Entity with non-commercial assistance in the following circumstances:

(a) to compensate the Entity for carrying out government mandated projects in the territory of Malaysia outside the oil and gas sector with social implications and economic development objectives; and

(b) to compensate the Entity for the sale of natural gas and its byproducts at below market rates:

(i) to consumers in the power or non-power sector, or to residential consumers, in the territory of Malaysia for the purpose of ensuring adequate supply and affordable prices for the general

public; and

(ii) to the general public in the territory of Malaysia for the use of Natural Gas Vehicles for the

purpose of promoting the use of gas fuel for environmental purposes, provided that the government-mandated project does not itself confer an advantage to the Entity in its commercial activities.

With respect to Article 17.6.1(a) (Non-discriminatory Treatment and Commercial Considerations), Malaysia may provide the Entity with non-commercial assistance as compensation for carrying out government-mandated projects in the oil and gas sector necessary to ensure an adequate and sustainable supply of hydrocarbons or to develop capacity in the domestic oil and gas sector, provided that the government mandated project does not itself confer an advantage to the Entity in its commercial activities.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: Felda Global Ventures Berhad or any new, reorganised or successor enterprise or entity.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(b), Felda Global Ventures Berhad may accord preferential treatment in its purchases of goods for the purpose of commercial resale to goods produced by its members or settlers who are participants in Federal Land Development Authority development schemes.

Measures: Land Development Ordinance 1956

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c) (Non-discriminatory Treatment and Commercial Considerations)

Entity: All existing and future Development Financial Institutions

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(c), the Entity provides financial services within the territory of Malaysia for the purposes of promoting development. Such financial services are not intended to displace or impede financial services supplied by privately owned enterprises from the relevant market.

The Entity may accord preferences to Malaysian persons in the supply of such financial services.

"Development Financial Institutions" means institutions which carry on any activity, whether for profit or otherwise, with or without any Government funding, with the purpose of promoting development in the financial, industrial, agricultural, commercial or other economic sector, including the provision of capital or other credit facility; and for the purposes of this definition, "development" includes the commencement of any new industrial, agricultural, commercial or other economic venture or the expansion or improvement of any such existing venture. "Development Financial Institutions" includes but is not limited to:

(a) Bank Pembangunan Malaysia Berhad:

(b) Bank Perusahaan Kecil dan Sederhana Malaysia Berhad;

(d) Bank Kerjasama Rakyat Malaysia;

(e) Bank Simpanan Nasional;

(f) Bank Pertanian Malaysia Berhad;

(g) Malaysian Industrial Development Finance Berhad;

(h) Credit Guarantee Corporation Berhad;

(i) Lembaga Tabung Haji;

(j) Sabah Development Bank Berhad;

(k) Sabah Credit Corporation;

(l) Borneo Development Corporation (Sabah) Sdn. Bhd.;

(m) Borneo Development Corporation (Sarawak) Sdn. Bhd.;

(n) Danajamin Nasional Berhad; and

(o) Cagamas Berhad.

Measures: Development Financial Institutions Act 2002

ANNEX IV

SCHEDULE OF MEXICO

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Mexico

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Comisión Federal de Electricidad, its subsidiaries and affiliates, or any new, reorganised or successor enterprise or entity.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity may grant preferences to goods and services of Mexican enterprises in its purchases of goods and services, when engaging in the following activities within the territory of Mexico:

(a) transmission and distribution of electricity;

(b) electricity generation through the use of nuclear fuels; and

The State may require the Entity in the contracts and permits awarded to or granted to the Entity, to include preferences for the purchase of goods and services of Mexican enterprises, when engaging in the transportation, storage, distribution and commercialisation of natural gas and other fuels, pursuant to the Ley de Hidrocarburos.

The preferences to goods and services described above are granted pursuant to the entry at Annex I – Mexico – 23 (Electricity). For greater certainty, Mexico has not scheduled against Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations), for these preferences by virtue of Article 17.2.11 (Scope).

With respect to Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.2(b) (Non-commercial Assistance), Mexico or its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity, including from the Universal Electric Service Fund, for the sole purpose of implementing targeted programmes which are undertaken pursuant to the Ley de la Industria Eléctrica and which promote the electrification of rural communities and marginalised urban areas, including the supply of power to vulnerable users at affordable prices.

Measures: Ley de la Comisión Federal de Electricidad, Articles 5, 63, 78 paragraphs VIII and IX.

Ley de la Industria Eléctrica, Articles 30, 31, 32, 33, 91, 113,115 and 116.

Ley Reglamentaria del artículo 27 Constitucional en Materia Nuclear, Article 15 paragraphs 1 and 2, and 49.

Implementing laws and regulations.

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment

Article 17.6.1(b) (Non-commercial Assistance), with respect to the supply of services into the territory of a bordering Party

Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment

Article 17.6.2(b) (Non-commercial Assistance), with respect to the supply of services into the territory of a bordering Party

Entity: Comisión Federal de Electricidad, its subsidiaries and affiliates, or any new, reorganised or successor enterprise.

Scope of Non-Conforming Activities:

Mexico or its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity for the sole purpose of carrying out government-mandated projects with social implications and economic development in the following areas:

(a) pipeline transportation and storage of gas; and (b) distribution of gas.

Measures: Ley de Hidrocarburos, Article 122.

Implementing laws and regulations.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Entity: Petróleos Mexicanos, its subsidiaries and affiliates, or any new, reorganised or successor enterprise or entity.

Scope of Non Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity may grant preferences for goods and services of Mexican enterprises in its purchases of goods and services, pursuant to measures listed below when engaging in exploration and production of oil and other hydrocarbons within the territory of Mexico.

The State may require the Entity in the entitlements, exploration and production contracts, and permits awarded to or granted to the Entity, to include preferences for the purchase of national goods or contracting domestic services.

Average national content for exploration and production activities shall be 25 per cent by 2015 and at least 35 per cent by 2025. This percentage shall not apply to deepwater and ultra-deepwater projects, which will have a different national content requirement. After 2025, Mexico will review and update the average national content for exploration and production activities every five years.

In imposing such requirements, the Entity must employ the methodology established by the Ministry of Economy and must take into account that it does not affect the competitive position of the Entity, and other enterprises developing exploration and production of hydrocarbons.

The preferences to goods and services described above are granted pursuant to the entry at Annex I – Mexico – 20 (Energy). For greater certainty, Mexico has not scheduled against Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations) for these preferences by virtue of Article 17.2.11 (Scope).

Measures: Ley de Hidrocarburos, Articles 3, 6, 8, 11, 16,17, 19, 29, 41, 46, 122, 125, 128 and Transitory Provision 8, 14, 24 and 28.

Ley de Petróleos Mexicanos, Articles 13, 63 and 76.

Reglamento de la Ley de Hidrocarburos, Articles 14 and 36.

Methodology for the Measurement of the National Content in the Entitlements and Exploration and Production Contracts of Hydrocarbons, and for the permits in the Hydrocarbons Industry, issued by the Ministry of Economy (Metodología para la Medición del Contenido Nacional en Asignaciones y Contratos para la Exploración y Extracción de Hidrocarburos, así como para los permisos en la Industria de Hidrocarburos, emitida por la Secretaría de Economía).

Implementing laws and regulations.

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition

with a like good produced and sold by a covered investment

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Petróleos Mexicanos, its subsidiaries and affiliates, or any new, reorganised or transferee enterprise or entity.

Scope of Non-Conforming Activities:

With respect to Article 17.6.1(a) (Non-commercial Assistance) and Article 17.6.1(b) (Non-commercial Assistance), and Article 17.6.2(a) (Non-commercial Assistance) and Article 17.6.2(b) (Non-commercial Assistance), Mexico or its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity for the sole purpose of undertaking projects mandated by the federal government:

(a) With social implications and to promote economic development, including projects involving the supply of services into the territory of bordering Parties, in the following sectors:

(i) treatment and refining of oil and natural gas processing;

(ii) transport and storage of hydrocarbons and petroleum products;

(iii) pipeline transportation and storage of petrochemicals;

(iv) distribution of gas and petroleum products; and

(v) retail sales of gas and petroleum products.

(b) To ensure the adequate supply of hydrocarbons and petroleum products at affordable prices in order to meet the basic needs of the population in rural areas and marginalised urban areas within Mexico.

Measures: Ley de Hidrocarburos, Articles 122, 123 and 124.

Implementing laws and regulations.

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Centro Nacional de Control del Gas Natural, or any new, reorganised or transferee enterprise or entity.

Scope of Non Conforming Activities:

With respect to Article 17.6.1 (Non-commercial Assistance) and Article 17.6.2 (Non-commercial Assistance) Mexico or its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity for the sole purpose of undertaking projects with social implications and to promote economic development in the following areas:

(a) natural gas processing;

(b) transport and storage of hydrocarbons and petroleum products; and

Measures: Ley de Hidrocarburos, Articles 122 and 123.

Implementing laws and regulations.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), Article 17.4.1(b) and Article 17.4.1(c)

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Banco Nacional de Obras y Servicios Públicos, S.N.C., or any new, reorganised or successor enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities:

The purpose of the Entity, as a development bank, is to finance or refinance projects that are directly or indirectly related to public or private investment in infrastructure and public services, and supporting the institutional strengthening of the Government (Federal, State and Municipal levels).

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations), the Entity may, pursuant to considerations set out in laws and regulations, accord preferential treatment in its purchase of services required for its commercial activities to Mexican enterprises.

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) and Article 17.4.1(c) (Non-discriminatory Treatment and Commercial Considerations), the Entity may, pursuant to considerations set out in laws and regulations, accord preferential treatment in its sale of financial services related to programmes oriented to promote access to credit only to nationals or Mexican enterprises.

With respect to Article 17.6.1(b) (Non-commercial Assistance) and Article 17.6.2(b) (Non-commercial Assistance) the Entity may receive government guarantees for banking services in order to comply with the Entity's purpose referred to in the first paragraph above and pursuant to considerations consistent with its laws and regulations.

The services provided by the Entity are not intended to displace or impede financial services provided by privately owned enterprises from the relevant market.

Measures: Ley de Instituciones de Crédito, Articles 30 to 44 Bis 2, 46, 46 Bis 1, 47 and 75.

Ley Orgánica del Banco Nacional de Obras y Servicios Públicos, Articles 2, 3, 4, 6, 7, 8, 11, 29 and 31.

Disposiciones de Carácter General Aplicables a las Instituciones de Crédito, Chapter XI.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), Article 17.4.1(b) and Article 17.4.1(c)

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Banco del Ahorro Nacional y Servicios Financieros, S.N.C., or any new, reorganised or successor enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities:

The purpose of the Entity, as a development bank, is to promote savings, financing and investment among the members of the Banking sector, offer financial services and instruments among such members, and channel financial and technical aids that are necessary to promote savings habits and sound development of the Banking sector.

With respect to Article 17.6.1(b) (Non-commercial Assistance) and Article 17.6.2(b) (Non-commercial Assistance), the Entity may receive government guarantees on banking services in order to comply with the Entity's purpose referred to in the first paragraph above and pursuant to considerations consistent with its laws and regulations.

The services provided by the Entity are not intended to displace or impede financial services provided by privately owned enterprises from the relevant market.

Measures: Ley de Instituciones de Crédito, Articles 30 to 44 Bis 2, 46, 46 Bis 1, 47 and 75.

Ley Orgánica del Banco del Ahorro Nacional y Servicios Financieros, Articles 3, 4, 7, 8, 10, 32 and 36.

Disposiciones de Carácter General Aplicables a las Instituciones de Crédito, Chapter XI.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), Article 17.4.1(b) and Article 17.4.1(c)

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C., or any new, reorganised or successor enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities:

The purpose of the Entity, as a development bank, is to grant financial aid mainly to the members of the Mexican Army, Air Force, and Navy.

With respect to Article 17.6.1(b) (Non-commercial Assistance) and Article 17.6.2(b) (Non-commercial Assistance) the Entity may receive government guarantees on banking services in order to comply with the Entity's purpose referred to in the first paragraph above and pursuant to considerations consistent with its laws and regulations.

The services provided by the Entity are not intended to displace or impede financial services provided by privately owned enterprises from the relevant market.

Measures: Ley de Instituciones de Crédito, Articles 30 to 44 Bis 2, 46, 46 Bis 1, 47 and 75.

Ley Orgánica del Banco Nacional del Ejército, Fuerza Aérea y Armada, Articles 2, 3, 4, 6, 7, 9 and 52.

Disposiciones de Carácter General Aplicables a las Instituciones de Crédito, Chapter XI.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), Article 17.4.1(b) and Article 17.4.1(c)

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Nacional Financiera, S.N.C., or any new, reorganised or successor enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities:

The purpose of the Entity, as a development bank, is to promote savings and investment, and to channel financial and technical resources for the industrial development and national and regional economic development.

The services provided by the Entity are not intended to displace or impede financial services provided by privately owned enterprises from the relevant market.

Measures: Ley de Instituciones de Crédito, Articles 30 to 44 Bis 2, 46, 46 Bis 1, 47 and 75.

Ley Orgánica de Nacional Financiera, Articles 2, 3, 5, 6, 10, 29, 30, 32, 33 and 36.

Disposiciones de Carácter General Aplicables a las Instituciones de Crédito, Chapter XI.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), Article 17.4.1(b) and Article 17.4.1(c)

Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Sociedad Hipotecaria Federal, S.N.C, or any new, reorganised or successor enterprise, with similar functions and objectives.

Scope of Non-Conforming Activities:

The purpose of the Entity, as a development bank, is to foster the development of primary and secondary mortgage markets, by granting credit and guarantees for the construction, acquisition and improvement of housing, preferably social interest housing, as well as increase production capacity and technological development related to housing. It could also guarantee funding related to the equipment of housing complexes.

With respect to Article 17.6.1(b) (Non-commercial Assistance) and Article 17.6.2(b) (Non-commercial Assistance) the Entity may receive government guarantees, in order to provide banking services in order to comply with the Entity's purpose referred to in the first paragraph above and pursuant to considerations consistent with its laws and regulations.

The services provided by the Entity are not intended to displace or impede financial services provided by privately owned enterprises from the relevant market.

Measures: Ley de Instituciones de Crédito, Articles 30 to 44 Bis 2, 46, 46 Bis 1, 47 and 75.

Ley Orgánica de Sociedad Hipotecaria Federal, Articles 2, 4, 5, 8, 8 Bis, 24 Bis, 24 Ter and 28.

Disposiciones de Carácter General Aplicables a las Instituciones de Crédito, Chapter XI.

ANNEX IV

SCHEDULE OF NEW ZEALAND

Obligations Concerned: Article 17.6.1(b) (Non-commercial Assistance) Article 17.6.2(b) (Non-commercial Assistance)

Entity: All existing and future state-owned enterprises.

Scope of Non-Conforming Activities:

New Zealand, or any of its state-owned enterprises or state enterprises, may provide non-commercial assistance to the Entity for the supply of construction, operation, maintenance or repair services of physical infrastructure supporting communications between New Zealand and other Parties.

Obligations Concerned: Article 17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: All existing and future state-owned enterprises.

Scope of Non-Conforming Activities:

New Zealand, or any of its state-owned enterprises or state enterprises, may provide non-commercial assistance to the Entity for the supply of air transport services and maritime transport services to the extent that they provide a connection for New Zealand to the rest of the world, provided that non commercial assistance for the supply of air transport services:

(a) is provided in order to maintain ongoing operations; and

(b) does not cause:

(i) a significant increase in the Entity's market share of the service; or

(ii) a significant price undercutting by the service supplied by the Entity as compared with the

price in the same market of a like service supplied by a service supplier of another Party, or significant price suppression, price depression or lost sales in the same market.

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance) with respect to the production and sale of goods in competition with a like good produced and sold by a covered investment in the territory of New Zealand.

Article 17.6.2(a) with respect to the production and sale of goods in competition with a like good produced and sold by a covered investment in the territory of New Zealand.

Entity: Solid Energy New Zealand Limited

Scope of Non-Conforming Activities:

New Zealand, or any of its state-owned enterprises or state enterprises may provide non-commercial assistance to Solid Energy New Zealand Limited for the production and sale of coal within the territory of New Zealand.

Measures: Deed of indemnity between Solid Energy New Zealand Limited and the Crown dated September 2014.

ANNEX IV

SCHEDULE OF PERU

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance) with respect to the production and sale of a good in competition with a like good produced and sold by a covered investment in the territory of Peru.

Entity: Petróleos del Perú (PETROPERU S.A.) or its successor.

Scope of Non-Conforming Activities:

With respect to Article 17.6.1(a) (Non-commercial Assistance), PETROPERU S.A. or its successor may, in a restructuring process that includes the private participation in equity or management in the enterprise or both, receive non-commercial assistance that could have an impact in their activities of exploitation, refining, production and sales of fuels and other oil products.

Measures: Legislative Decree Nº 43 (Ley de la Empresa Petróleos del Perú, PETROPERU), "El Peruano" Official Gazette of March 05, 1981.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations) in relation to the purchase of a good or service.

Entity: All existing and future state-owned enterprises at the central level of government.

Scope of Non-Conforming Activities:

Existing and future state-owned enterprises may accord more favourable treatment to socially or economically disadvantaged minorities and ethnic groups in the purchase of goods and services.

For the purposes of this reservation, "ethnic groups" means indigenous, native and peasant communities.

ANNEX IV

SCHEDULE OF THE UNITED STATES OF AMERICA

Obligations Concerned: Article 17.4.1(a) Non-discriminatory Treatment and Commercial Considerations), with respect to the supply of financial services

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), with respect to the supply of financial services

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Federal National Mortgage Association, Federal Home Loan Mortgage Corporation and the Government National Mortgage

Association, or any new, reorganised or transferee enterprises, with similar functions and objectives.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatmen and Commercial Considerations) and Article 17.6.1(b) (Non commercial Assistance), to facilitate housing finance in the United States, the Entity, pursuant to considerations, consistent with laws and regulations:

(a) purchases, sells or trades single-family, multi-family, and commercial mortgage loans, and assets underlying these loans as a consequence of foreclosure or a similar action in connection with defaulted debt;

(b) issues mortgage-backed securities and direct debt or other obligations related to risks associated with those securities;

(d) administers payments associated with mortgage backed securities; and

(e) purchases, sells or trades mortgage-backed securities and direct debt or other obligations related to risks associated with those securities.

With respect to Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), to facilitate housing finance in the United States, the Entity may, in certain circumstances, pursuant to considerations consistent with laws and regulations such as 12 U.S.C. 1451-1459 and 12 U.S.C. 1716-1723i:

(a) purchase, sell, trade single-family, multi-family, and commercial mortgage loans, and assets underlying such loans as a consequence of foreclosure or a similar action in connection with defaulted debt, and administer payments associated with such loans or assets, only with enterprises in the territory of the United States; and

(b) guarantee or insure the timely payment of principal and interest only on mortgage-backed securities that are issued by enterprises in the territory of the United States.

The scope of non-conforming activities listed with respect to Article 17.4.1(a) and Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations) includes the purchase of associated financial services.

Measures: 12 U.S.C. 1451-1459

12 U.S.C. 1716-1723i

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to the supply of financial services

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), with respect to the supply of financial services

Article 17.6.1(b) (Non-commercial Assistance)

Entity: Federal Financing Bank, or any new, reorganised or transferee enterprise, with similar functions and objectives.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) (Non discriminatory Treatment and Commercial Considerations) and Article and 17.6.1(b) (Non-commercial Assistance), the Entity may, pursuant to considerations set out in laws and regulations:

(b) issue or sell obligations to privately owned enterprises.

With respect to Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), the Entity may, in certain circumstances and pursuant to considerations set out in laws and regulations:

(a) provide loans (including through the purchase of obligations, such as bonds or notes) that are guaranteed by U.S. federal agencies or by U.S. federal government-authorised entities only to (a) privately owned enterprises in the territory of the United States; (b) enterprises in the territories of certain other countries; or (c) governments of certain other countries as determined by the United States; and

(b) issue or sell obligations only to (a) privately owned enterprises in the territory of the United States; or (b) enterprises in the territories of certain other countries as determined by the United States.

Measures: 12 U.S.C. 2285

Obligations Concerned: Article 17.4.1 (a) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial services

Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), with respect to financial services

Entity: A national infrastructure bank, or any reorganised or transferee enterprise, with similar functions and objectives.

Scope of Non- Conforming Activities: With respect to Article 17.4.1(a) and Article 17.4.1(c)(i) (Non-discriminatory Treatment and Commercial Considerations), the Entity, pursuant to a government mandate in laws and regulations, provides financing at below market rates to privately owned enterprises to construct or maintain general infrastructure located in whole or in part in the territory of the United States, and may, in certain circumstances and pursuant to a government mandate, provide this financing only to privately owned enterprises in the territory of the United States.

ANNEX IV

SCHEDULE OF VIET NAM

Obligations Concerned: Article 17.6.1(a) (Non-commercial Assistance), with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam Article 17.6.1(b) (Non-commercial Assistance)

Entity: All state-owned enterprises and designated monopolies.

Scope of Non-Conforming Activities:

With respect to Article 17.6.1(a) (Non-commercial Assistance), Viet Nam may provide any financing necessary to the restructuring1 of the Entity, provided that the financing does not cause:

(a) a significant increase in the market share of a good produced and sold by the Entity in the relevant market in the territory of Viet Nam; or

(b) a significant price-undercutting of a good produced and sold by the Entity as compared with the price in the same market of a like good produced and sold by an enterprise that is a covered investment of another Party, or a significant price suppression, price depression or lost sales in the same market.

With respect to Article 17.6.1(a) and Article 17.6.1(b) (Non commercial Assistance), Viet Nam may provide the Entity with assistance in the form of a one-time purchase of non performing loans or unused assets at market value and financing of the government to settle excess employees, provided that the assistance is non-recurrent, non-repeated and is given for purposes of equitisation.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Article 17.6.2(a) (Non-commercial Assistance),with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Entity: All state-owned enterprises and designated monopolies.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) and Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations), as a means of ensuring economic stability or providing public goods as defined in its laws and regulations, Viet Nam may, pursuant to its laws or regulations, require a state-owned enterprise or a designated monopoly:

(a) to sell or purchase goods at a regulated price, quantity or other terms and conditions; and

(b) to produce or sell a good to the public, as defined as public goods in its laws and regulations, within the territory of Viet Nam.

With respect to Article 17.6.1(a) and Article 17.6.2(a) (Non-commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide the Entity with non-commercial assistance to cover the reasonable costs, including any contributions to employee welfare funds, as a result of the implementation of such measure.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Article 17.6.2(a) (Non-commercial Assistance),with respect toproduction and sale of a good in competition with a covered investment in the territory of Viet Nam

Entity: All state-owned enterprises and designated monopolies.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) and Article 17.4.2(a) (Non discriminatory Treatment and Commercial Considerations), as a means of promoting and facilitating the economic development of remote and mountainous areas, borderlands and offshore areas, areas under extremely difficult socio economic conditions or areas where the standard of living is abnormally low or where there is serious underemployment, Viet Nam may require or direct the Entity to take into account factors other than commercial considerations in its purchase of goods pursuant to a government measure.

With respect to Article 17.6.1(a) and Article 17.6.2(a) (Non commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide the Entity with compensation for the implementation of such measure.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(b) (Non-discriminatory Treatment and Commercial Considerations)

Entity: All state-owned enterprises and designated monopolies.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a), Article 17.4.1(b), Article 17.4.2(a) and Article 17.4.2(b) (Non-discriminatory Treatment and Commercial Considerations), as a means of promoting and facilitating the development of small and medium-sized enterprises as defined by its laws and regulations3, Viet Nam may require or direct the Entity to:

(a) take into account factors other than commercial considerations; and

(b) accord preferential treatment to small and medium-sized enterprises that are investments of Vietnamese investors in the territory of Viet Nam,

in its purchase of a good or service from small and medium-sized enterprises pursuant to a government measure.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Article 17.6.2(a) (Non-commercial Assistance),with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Entity: Viet Nam Oil and Gas Group (PETROVIETNAM) and its subsidiaries and successors.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) and Article 17.4.2(a)(Non discriminatory Treatment and Commercial Considerations), the Entity, pursuant to a governmental measure, may be required to take into account factors other than commercial considerations with respect to sales of a good and may accord preferential treatment in its purchases of a good or service supplied by enterprises that are investments of Vietnamese investors in the territory of Viet Nam in the following activities: oil and gas exploration, prospecting and exploitation, and flight operation services.

The preferential treatment accorded to a good or service described above is accorded pursuant to the entry in Annex I – Viet Nam – 35. For greater certainty, Viet Nam has not scheduled against Article 17.4.1(b) and Article 17.4.2(b) (Non-discriminatory Treatment and Commercial Considerations) for these preferences by virtue of Article 17.2.11 (Scope).

With respect to Article 17.6.1(a) and Article 17.6.2(a) (Non commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity in order to carry out a project in the oil and gas, hydrocarbon and hydrocarbon derivative and related industries with the objectives of regional or socio economic development within the territory of Viet Nam.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.2(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6.1(a) (Non-commercial Assistance), with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Article 17.6.2(a) (Non-commercial Assistance),with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Entity: Viet Nam Electricity (EVN) and its subsidiaries5 and successors;

Any existing or future state-owned enterprise that engages in power generation, including nuclear power or any types of renewable energy.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) and Article 17.4.2(a) (Non discriminatory Treatment and Commercial Considerations), pursuant to a government measure, the Entity must ensure the development of a sustainable power system and fulfil the requirements to provide safe, stable and efficient power supply at regulated prices and other terms and conditions, and may accord differential treatment in its purchase of a good or service in the areas of power generation by hydropower, nuclear power and security-related power generators, transmission and distribution of all types of electricity, power and alternative or substitute of electricity.

The differential treatment accorded to a good or service described above are accorded pursuant to the entry in Annex I – Viet Nam – 25 and the entry in Annex II – Viet Nam – 22. For greater certainty, Viet Nam has not scheduled against Article 17.4.1(b) and Article 17.4.2(b) (Non-discriminatory Treatment and Commercial Considerations) for this differential treatment by virtue of Article 17.2.11 (Scope).

With respect to Article17.6.1(a) and Article 17.6.2(a) (Non commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide loans or loan guarantees to the Entity for the purpose of establishing power generation facilities with the objectives of regional or socio-economic development.

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), with respect to the sale of a good

Article 17.6.1(a) (Non-commercial Assistance), with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Article 17.6.2(a) (Non-commercial Assistance),with respect to production and sale of a good in competition with a covered investment in the territory of Viet Nam

Entity: Viet Nam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin) and its subsidiaries and successors in the mining sector.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity may sell coal or any minerals in the territory of Viet Nam on terms and conditions other than those based on commercial considerations, pursuant to the applicable laws and regulations.

With respect to Article17.6.1(a) and Article 17.6.2(a) (Non commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity for the maintenance of its existing activities in remote areas or areas of strategic importance in its production of coal and minerals in the territory of Viet Nam, provided the assistance does not cause:

(a) a significant increase in the market share of a good produced and sold by the Entity in the relevant market in the territory of Viet Nam; or

(b) a significant price-undercutting of a good produced and sold by the Entity as compared with the price in the same market in the territory of Viet Nam of a like good produced and sold by an enterprise that is a covered investment of another Party, or a significant price suppression, price depression or lost sales in the same market.

Obligations Concerned: Article 17.4 (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6 (Non-commercial Assistance)

Entity: State Capital Investment Corporation (SCIC) and its subsidiaries and successors.

Scope of Non-Conforming Activities:

Asset management, investment and related activities, using financial assets of Viet Nam.

This entry will cease to have effect when SCIC becomes a full member of the International Forum of Sovereign Wealth Funds or within five years after the date of entry into force of this Agreement for Viet Nam, whichever comes first.

Obligations Concerned: Article17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c) (Non-discriminatory Treatment and Commercial Considerations)

Article17.6.1(b) (Non-commercial Assistance)

Article 17.6.1(c) (Non-commercial Assistance)

Entity: Viet Nam National Financial Switching Joint Stock Company(Banknetvn);

Debt and Asset Trading Corporation (DATC);

Viet Nam Development Bank (VDB);

Viet Nam Bank for Agriculture and Rural Development (Agribank) and its subsidiaries;

Social policy funding entities, co-operative banks, and any development financial institutions;

A mortgage refinance bank; and

their successors.

Scope of Non-Conforming Activities:

With respect to Article 17.4.1(a) and Article 17.4.1(c) (Non discriminatory Treatment and Commercial Considerations), pursuant to a government measure, the Entities listed in this entry (except Banknetvn) may take into account factors other than commercial considerations and provide financial services (except insurance and securities) solely to or accord preferential treatment to Vietnamese nationals or enterprises in the territory of Viet Nam. These services are not intended to displace or impede private financing.

With respect to Article 17.6.1(b) and Article 17.6.1(c) (Non commercial Assistance), Viet Nam may provide non commercial assistance to Banknetvn to provide financial switching services.

Obligations Concerned: Article 17.4 (Non-discriminatory Treatment and Commercial Considerations)

Article 17.6 (Non-commercial Assistance)

Entity: Any state-owned enterprises owned or controlled by the Ministry of National Defence of Viet Nam or the Ministry of Public Security of Viet Nam, except Viettel Global Investment Joint Stock Company and enterprises exclusively engaged in commercial activities not related to national defence, public order or public security.

Scope of Non-Conforming Activities: All existing and future activities.

Obligations Concerned: Article17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article 17.4.1(c) (Non-discriminatory Treatment and Commercial Considerations)

Article17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Airports Corporation of Viet Nam, Vietnam Airlines Corporation, Viet Nam National Shipping Lines and their subsidiaries and successors.

Scope of Non-Conforming Activities:

With respect to Article17.4.1(a) and Article 17.4.1(c) (Non discriminatory Treatment and Commercial Considerations), Airports Corporation of Viet Nam may provide ground handling services to Vietnamese national airlines at preferential rates, pursuant to a governmental measure.

With respect to Article 17.6.1(b) (Non-commercial Assistance), Vietnam Airlines Corporation may receive non commercial assistance in the form of a loan guarantee as part of an international financial arrangement or contract, provided that the assistance does not directly cause:

(a) significant increase in the market share of a service provided by Vietnam Airlines Corporation in the relevant market; or

(b) a significant price-undercutting of a service provided by Vietnam Airlines Corporation as compared with the price in the same market of a like service provided by an enterprise that is a covered investment of another Party, or a significant price suppression, price depression or lost sales in the same market.

With respect to Article 17.6.1(b) and Article 17.6.2(b) (Non commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide non-commercial assistance to Viet Nam National Shipping Lines pursuant to a restructuring plan with respect to the supply of maritime transportation services.

Obligations Concerned: Article17.6.1(a) (Non-commercial Assistance),with respect to the production and sale of goods in competition with a covered investment in the territory of Viet Nam

Article 17.6.2(a) (Non-commercial Assistance),with respect to the production and sale of goods in competition with a covered investment in the territory of Viet Nam

Entity: Shipbuilding Industry Corporation (SBIC) and its subsidiaries and successors in the shipbuilding and related sectors.

Scope of Non-Conforming Activities:

Obligations Concerned: Article17.6.1(a) and Article17.6.2(a) (Non-commercial Assistance), with respect to the production and sale of a good in competition with a covered investment in the territory of Viet Nam

Entity: Vietnam National Coffee Corporation.

Scope of Non-Conforming Activities:

Obligations Concerned: Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations)

Article17.6.1(b) (Non-commercial Assistance)

Article 17.6.2(b) (Non-commercial Assistance)

Entity: Any state-owned enterprises in the printing, publishing, audio-visual services, mass communication (press, news gathering agencies, publishing, radio and television broadcasting, in any form) and telecommunications sectors.

Scope of Non-Conforming Activities:

Any activities of the Entity in the mass communication, printing and publishing sectors.

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), the Entity in the telecommunications sector may sell or purchase goods and services at a regulated price or on other terms and conditions pursuant to a government measure.

With respect to Article 17.4.1(a) (Non-discriminatory Treatment and Commercial Considerations), any state-owned enterprise may take into account factors other than commercial considerations and accord differential treatment to the purchase and sale of audio-visual productions and distribution services.

The differential treatment accorded to a good or service described above are accorded pursuant to the entries in Annex I – Viet Nam – 9, Annex I – Viet Nam – 10, Annex I – Viet Nam – 11 and Annex I – Viet Nam – 12, and the entries in Annex II – Viet Nam – 13, Annex II – Viet Nam – 14, Annex II – Viet Nam – 19, Annex II – Viet Nam –20 and Annex II – Viet Nam – 21. For greater certainty, Viet Nam has not scheduled against Article 17.4.1(b) (Non-discriminatory Treatment and Commercial Considerations) for these preferences by virtue of Article 17.2.11 (Scope).

With respect to Article 17.6.1(b) and Article 17.6.2(b) (Non commercial Assistance), Viet Nam, its state enterprises or state-owned enterprises may provide non-commercial assistance to the Entity with respect to overseas broadcasting of Vietnamese language programming.